Xin Lang Cai Jing·2025-11-02 01:11Core Viewpoint - The performance of the "Big Three" oil companies in China has declined in both revenue and net profit for the first three quarters of 2025, primarily due to falling international oil prices, continuing the trend observed in the first half of the year [1][2]. Financial Performance Summary - China National Petroleum Corporation (CNPC) reported a net profit of 126.29 billion yuan, a year-on-year decrease of 4.9%, the smallest decline among the three [1][2]. - China Petroleum & Chemical Corporation (Sinopec) had a net profit of 29.98 billion yuan, down 32.2%, marking the largest decline [1][2]. - China National Offshore Oil Corporation (CNOOC) achieved a net profit of 101.97 billion yuan, a decrease of 12.6% [1][2]. Revenue and Profitability Analysis - CNPC's revenue was 2169.26 billion yuan, with a revenue decline of 3.9% [2]. - Sinopec's revenue was 2113.44 billion yuan, experiencing a 10.7% drop [2]. - CNOOC's revenue stood at 312.50 billion yuan, down 4.1% [2]. - CNOOC had the highest net profit margin at 32.63%, compared to CNPC's 5.82% and Sinopec's 1.42% [4]. Cash Flow and Production Insights - CNPC led in net cash flow from operating activities with 343.1 billion yuan, a year-on-year increase of 3% [4]. - CNOOC followed with a net cash flow of 171.75 billion yuan, down 6% [4]. - Sinopec reported a net cash flow of 114.78 billion yuan, up 13%, the largest increase among the three [4]. - All three companies saw an increase in oil and gas equivalent production, with CNPC at 1.377 billion barrels (up 2.6%), CNOOC at 578 million barrels (up 6.7%), and Sinopec at 394 million barrels (up 2.2%) [8]. Market Conditions and Price Trends - The average price of Brent crude oil was $70.93 per barrel, down 14.3% year-on-year, while West Texas Intermediate (WTI) averaged $66.73 per barrel, a decrease of 14.1% [5]. - The average oil prices realized by the companies also fell, with CNOOC down 13.6%, CNPC down 14.7%, and Sinopec down 13.3% [6]. - Natural gas prices saw a slight increase for CNOOC (up 1%) while CNPC and Sinopec experienced declines [6]. Strategic Outlook - Sinopec and CNPC are focusing on upgrading their refining businesses, but their chemical segments have underperformed, impacting their net profit margins [9]. - Sinopec's chemical segment reported a loss of 7.43 billion yuan, worsening from a loss of 5.58 billion yuan the previous year [9]. - Domestic demand for refined oil products is declining, affecting sales for both CNPC and Sinopec [9]. - CNOOC plans to engage in hedging activities to mitigate risks associated with market price fluctuations [12].