Page 4 - AsianOil Week 28 2022

AsianOil COMMENTARY AsianOil

China’s state-owned giants

buoyed by high oil prices

CNOOC Ltd has more than doubled its profits for the first half of 2022

compared with 2021, while PetroChina expects its first-half profit to

rise by 50-60%

PERFORMANCE HIGH oil prices continue to boost profits for while others work to reduce their dependence
China’s state-owned energy giants. In mid-July, on Russian energy, producers elsewhere stand
WHAT: it emerged that CNOOC Ltd had more than to benefit from higher prices and intensifying
CNOOC Ltd has more doubled its net profit for the first half of 2022 competition.
than doubled its first-half compared with the first half of 2021. The com- “The main reason for the profit growth is our
profit year on year, while pany said its preliminary net income for the increased exploration and production effort,
PetroChina expects first half of the year had come in at CNY70.5- cost control and efficiency measures, besides
a profit increase of 72.5bn ($10.4-10.7bn), up year on year from higher international oil price and growth in oil
50-60%. CNY33.3bn ($4.9bn). and gas sales volume,” PetroChina said in a stock
A day later, PetroChina said it expected to exchange filing this week.
WHY: report a y/y net profit increase of 50-60% to This follows PetroChina’s announcement
The companies’ CNY79.5-85.0bn ($11.8-12.6bn) for the first in March that it was targeting an oil produc-
performances have been half of 2022, compared with CNY53bn ($7.8bn) tion increase of 1.2% for the whole year, along
bolstered by high oil in the first half of last year. with a gas output increase of 4.6% and a 3.6%
prices. The results come as crude prices remain at rise in refining throughput. These targets were
multi-year highs above $100 per barrel despite unveiled after Beijing set a GDP growth goal
WHAT NEXT: dropping somewhat in recent days. Over the of 5.5% for 2022. However, China is expected
China is also benefiting first half of this year, Brent crude prices averaged to struggle to achieve this given the wave of
from low-cost imports of around $105 per barrel, compared with about lockdowns related to coronavirus (COVID-19)
Russian crude. $65 per barrel in the same period of 2021. outbreaks, as well as a broader global economic
slowdown. During the second quarter of 2022,
On the up China’s economy only grew by 0.4% y/y. Growth
Chinese oil and gas producers – as well as is expected to pick up pace in the third quarter,
those in other countries – continue to benefit but uncertainty remains over the country’s abil-
from the market upheaval that has followed ity to meet its target for the year.
Russia’s invasion of Ukraine. With a number Nonetheless, PetroChina, which is China’s
of countries shunning Russian oil and gas, largest oil and gas producer, is expected to

P4 www. NEWSBASE .com Week 28 15•July•2022