On March 29, China National Petroleum Corporation (hereinafter referred to as PetroChina) and China National Offshore Oil Corporation (hereinafter referred to as CNOOC) successively released their 2022 operating results.
PetroChina achieved operating income of 3.2 trillion yuan, a year-on-year increase of 23.9%, a record high; it achieved net profit attributable to shareholders of the parent company of 149.38 billion yuan, a year-on-year increase of 62.1%.
CNOOC achieved total revenue of RMB 422.2 billion, a year-on-year increase of 71.6%, and net profit of RMB 141.7 billion, a year-on-year increase of 101.5%.
According to the 2022 annual performance report previously released by Sinopec, the net profit of the “three barrels of oil” totaled 357.233 billion yuan, with an average daily profit of 979 million yuan.
01. PetroChina: Revenue and profits both hit record highs
China National Petroleum Corporation announced that in 2022, the company’s two major oil and gas industry chains will operate efficiently and stably, the oil and gas business will achieve another good performance, the refining and chemical transformation will be accelerated across the board, and the new energy and new materials business will accelerate development. In accordance with International Financial Reporting Standards, the company achieved operating income of 3.2 trillion yuan (RMB, the same below), a year-on-year increase of 23.9%; net profit attributable to shareholders of the parent company was 149.38 billion yuan, a year-on-year increase of 62.1%; free cash flow was 150.42 billion yuan, a year-on-year increase of 23.9%. An increase of 88.4%. The company’s financial condition is in good health, with operating performance indicators such as revenue, profit, and free cash flow all reaching record highs.
Oil and gas production equivalent reached a record high. We vigorously enhanced exploration and development efforts, achieved a number of major breakthroughs and important discoveries, and further consolidated our resource base. In 2022, the company’s oil and gas production equivalent was 1.685 billion barrels, a record high, a year-on-year increase of 3.7%, of which crude oil production was 906 million barrels, a year-on-year increase of 2.1%; it produced 4.68 trillion cubic feet of marketable natural gas, a year-on-year increase of 5.8%. Domestic oil and gas production equivalent was 1.513 billion barrels, a year-on-year increase of 3.8%, of which crude oil production was 767 million barrels, a year-on-year increase of 1.9%; marketable natural gas production was 4.47 trillion cubic feet, a year-on-year increase of 5.9%. New breakthroughs have been made in the strategic layout of new energy, development has been accelerated across the board, a number of key projects have been completed and put into operation, the installed capacity of wind and solar power generation has exceeded 1.4 million kilowatts, and the development and utilization capacity of new energy has reached 8 million tons of standard coal per year. The oil and gas new energy business achieved an operating profit of RMB 165.75 billion.
The transformation and upgrading of the refining and chemical industry has accelerated across the board. Accelerating the transformation from “fuel type” to “chemical products and organic materials type”, strategic layout and transformation and upgrading have achieved significant results. The Guangdong Petrochemical refining and chemical integration project has been completed and put into operation, and the Jilin Petrochemical and Guangxi Petrochemical large ethylene projects have started construction. Structural adjustment was accelerated across the board, adhering to the market orientation, determining production based on sales, promoting production based on production, coordinating and optimizing resources, processing load and product structure, increasing the production of special and efficient products, and the output of low-sulfur ship fuel, paraffin, and low-sulfur petroleum coke increased by 31.2%. The new material speed-up project is progressing smoothly, the output of new materials has increased by 56.3% year-on-year, 119 new chemical product brands have been developed, and the sales volume of chemical products has reached a record high. The new refining and chemical materials business achieved an operating profit of 40.57 billion yuan.
The sales quality and efficiency of refined oil products continued to improve. Market-oriented and benefit-centered, we adhere to the integration of wholesale and retail, mutual promotion of oil and non-oil products, online and offline integration, and coordination of steam, coal and diesel products, actively expand the market and increase efficiency, and the market share of refined oil sales business has increased steadily; the implementation of ” With the marketing model of “oil products + goods + services”, the number of comprehensive energy service stations has grown rapidly, the country’s first refueling robot has been put into commercial use, and both non-oil gross profit and non-oil profit have reached the best level in history. International trade continues to optimize imported resources, and its ability to reduce costs and increase efficiency has been enhanced. The annual trade volume reached 380 million tons, and the overall service industry chain has been fruitful. In 2022, the company will develop 140 new gas stations and put 187 new gas stations into operation. The total number of operating gas stations will be 22,586, 416 charging and swapping stations, and 542 photovoltaic stations. The sales business achieved an operating profit of 14.37 billion yuan.
The proportion of clean and low-carbon energy continues to increase. The oil and gas production structure was further optimized, and natural gas sales grew rapidly. The annual sales of natural gas were 260.3 billion cubic meters, of which domestic sales were 207.1 billion cubic meters, exceeding 200 billion cubic meters for the first time, setting a record high, with a year-on-year increase of 6.4%, and the domestic market share reached 60 % or more, equivalent to replacing 275 million tons of standard coal and reducing carbon dioxide emissions by 268 million tons. Continue to optimize the scale and structure of imported gas, optimize marketing strategies and market layout based on the principle of efficiency, vigorously explore high-quality markets and direct supply users, increase efforts in terminal market development, actively carry out online transactions, and achieve remarkable results in expanding sales and improving efficiency. The natural gas sales business achieved an operating profit of 12.96 billion yuan.
future outlook
In 2023, the company’s oil, gas and new energy business will continue to increase resource exploration and development and increase reserves and production to ensure sustainable development with a high level of reserve and production balance; promote the integration of integrated new energy bases and geothermal, centralized wind, solar, gas and electricity and other projects are implemented to consolidate and enhance the good development momentum of the new energy business.
The refining and chemical sales and new materials business will continue to promote structural adjustment, transformation and upgrading, accelerate the implementation of new material speed-up projects, continue to promote “reduce oil and increase chemicals”, “reduce oil and increase specialties” and “reduce carbon and increase green” to further enhance product competitiveness; Strengthen the construction of marketing system, optimize resource allocation, and enhance overall efficiency creation capabilities.
Unswervingly promote green and low-carbon transformation, give full play to the advantages of technology, industry and integration, continue to optimize the energy production and supply structure, strengthen conservation and intensive use of resources, and provide more low-carbon and zero-carbon resources to the societyenergy.
Continue to promote corporate governance and management improvements, strengthen ESG management, create long-term value with stakeholders, share corporate development results, and give back to shareholders and investors with excellent performance
02. CNOOC: Net profit doubled
On the afternoon of March 29, CNOOC disclosed its 2022 operating results. In 2022, CNOOC will actively respond to the complex and ever-changing energy situation and international environment, make every effort to promote increased reserves and production, technological innovation and low-carbon transformation, further promote actions to reduce costs, improve quality and efficiency, and maximize benefits from the high oil price cycle. Operating performance reached a record high again.
On April 21, the company was successfully listed on the main board of the Shanghai Stock Exchange, becoming the largest A-share IPO in China’s energy industry in the past decade, bringing the company into a more dynamic Chinese domestic capital market, broadening future development space, and creating greater value for shareholders. .
During the year, the company continued to increase its efforts in oil and gas exploration and development. A total of 18 new discoveries were made throughout the year, 28 oil and gas structures were successfully evaluated, new breakthroughs were made in new areas, new fields, and new types of exploration, and further exploration of new reserves and production was achieved. district. The company’s net proven reserves increased to 6.24 billion barrels of oil equivalent, the reserve replacement rate reached 182%, and the reserve life was stable at 10 years, laying a solid resource foundation for the company’s future development.
The company efficiently promoted the construction of major projects, exceeded its capital expenditure targets, and maintained rapid growth in oil and gas production. During the year, a total of 9 new projects were successfully put into operation and more than 40 production capacity projects were under construction. The Bohai Oilfield is firmly the largest crude oil production base in China, the Eastern South China Sea Oilfield has reached its production target ahead of schedule, the quality of overseas business development has been significantly improved, and onshore unconventional natural gas production has increased significantly. The company’s net oil and gas production for the year increased to 623.8 million barrels of oil equivalent, setting a new record for the company’s net production.
The company deepens cost reduction, improves quality and efficiency, and maintains leading profitability. The average realized oil price for the year was US$96.59/barrel, a year-on-year increase of 42.3%; the average realized natural gas price was US$8.58/thousand cubic feet, a year-on-year increase of 23.5%. The main cost of a barrel of oil is US$30.39, which effectively resists the pressure of rising commodity prices and continues to consolidate its cost competitive advantage. The total revenue for the year was RMB 422.2 billion, a year-on-year increase of 71.6%, and the net profit was RMB 141.7 billion, a year-on-year increase of 101.5%. The outstanding performance fully demonstrated the company’s precise management results.
In 2022, the company will focus on improving its independent innovation capabilities, effectively using scientific and technological achievements to empower oil and gas resource development, and further promoting digital and intelligent transformation. The Enping 15-1 oil field group has put into use China’s most intelligent offshore unmanned platform, Asia’s first deepwater jacket platform “Haiji No. 1” has been completed and put into operation, offshore super-heavy oil thermal recovery development, and underwater oil and gas production systems Important breakthroughs have been made in independent research and development applications, onshore deep coal bed methane well fracturing, offshore shale oil drilling, etc., and scientific research services and production are precise and powerful.
At the same time, the company firmly practices green and low-carbon development and vigorously promotes green production in oil and gas fields. The shore power application project of the Bozhong-Kenli oilfield group is fully put into operation. The Bohai Oilfield has realized “green power entering the sea” for the first time, and it is China’s first offshore carbon storage demonstration project. built. The company has also steadily promoted the development of offshore wind power business. The Hainan CZ7 offshore wind power demonstration project has been approved. The main project of the first deep-sea floating wind power platform “CNOOC Guanlan” has been completed. The new energy business layout has been implemented in an orderly manner.
The company maintained a healthy cash position, with abundant free cash flow of RMB 110.8 billion. In order to better share the company’s development results and actively fulfill its commitments to shareholders, the board of directors has recommended the distribution of a final dividend of HK$0.75 per share (tax included).
Mr. Wang Dongjin, chairman of the company, said: “In 2022, facing the extremely challenging external environment, CNOOC will forge ahead, seize opportunities, and achieve new milestones in many operating results. Bravely setting the trend, we will continue to increase reserves and production. As a driving force, with the goal of building a world-class energy company, we will promote the company’s high-quality development to achieve new leaps, actively fulfill our social responsibilities, and repay the trust and support from all walks of life with outstanding results.”
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