The rise in crude oil prices has pushed up performance, and "three barrels of oil" have started a new energy journey

The so-called "three barrels of oil" in the market refers to the three enterprises
of PetroChina, Sinopec and CNOOC.

These three giants can be called the cornerstone of China's basic chemical industry, and they are also an important guarantee
for domestic energy.
Because they are also in the petrochemical industry, these three companies are often compared by the market
.

2022 is a year of high prosperity in the petrochemical industry, international oil prices rose strongly, as a giant in the petrochemical industry, how did the "three barrels of oil" perform?

International oil prices are running at a medium to high level

Resuming the development of the petrochemical industry in 2022, oil prices have become the core hub
of the ups and downs of the volatile industry.

In 2022, the international financial market will fluctuate significantly, and the risk of global recession will increase
.
Affected by recession expectations, geopolitical risks and other factors, oil prices rose first and then declined, and oil prices have always operated
at medium and high levels.

Specifically, in the first half of 2022, due to geopolitical disputes and other factors, the industry is worried that Russian crude oil production has fallen sharply, and the OPEC supply side remains tight, the oil industry is in a situation of short supply, and the supply side dominates international oil prices
.

In the second half of 2022, the Fed started an aggressive interest rate hike mode, triggering market fears of recession, oil prices began to loosen shock mode, and the demand side began to dominate international oil prices
.

Although demand is tight and loose, on the whole, oil prices showed an upward trend last year, and oil prices are currently at medium to high levels
.
According to data from Galaxy Securities Research Report, the average oil prices of Brent and WTI in 2022 will be 99.
04 and 94.
30 US dollars / barrel, respectively, an increase of 39.
6% and 38.
5%.

Benefiting from the sharp rise in crude oil, the domestic petrochemical sector has also continued the high prosperity since 2021
.
According to the Changjiang Securities Research Report, the revenue and performance of the petrochemical sector in the first three quarters have rebounded
.
In particular, the related sectors of the near oil end rose significantly, of which the performance of the petrochemical sector increased by 16.
31% year-on-year, oil and gas exploitation was about 59.
72%, and exploration and oil and gas services were about 39.
96%.

However, at the same time, the higher prices of traditional energy sources such as oil have also brought some negative effects to the industry, especially under the influence of economic recession, the demand for terminal chemicals is sluggish, resulting in significant pressure on the performance of traditional refining and chemical integration fields
.

According to the research report of Changjiang Securities, in the first three quarters of 2022, the performance of the traditional refining and chemical sector increased by -11.
69% year-on-year, and the performance of petrochemical downstream deep processing was -29.
14%
year-on-year.

Upstream performance increased significantly

Specific to the "three barrels of oil", in the first three quarters of 2022, the performance of the upstream sector of PetroChina, Sinopec and CNOOC achieved substantial growth
year-on-year.

During the reporting period, CNOOC seized the favorable opportunity of rising oil prices, continued to increase exploration and development, increased reserves and production, improved quality and efficiency, achieved positive results, further consolidated its cost competitive advantage, and greatly improved its profitability
.

In the first three quarters of 2022, the company achieved unaudited oil and gas sales revenue of about 265.
89 billion yuan (RMB, the same below), an increase of 67.
6% year-on-year, mainly due to the increase in international oil prices and increased sales volume; During the period, the company achieved an operating income of 311.
145 billion yuan, a year-on-year increase of 78.
97%; Net profit attributable to shareholders of the parent company reached RMB108.
77 billion, up 105.
9%
year-on-year.

In the first three quarters, the company's average realized oil price was 101.
40 US dollars / barrel, a year-on-year increase of 55.
8%, which was basically consistent with the trend of international oil prices; The average realized gas price was $8.
14/1,000 cubic feet, up 20.
2% year-over-year, mainly due to higher prices
due to market supply and demand effects.
The company's main cost of barrel oil is well controlled, and the main cost of barrel oil in the first three quarters was $
30.
29.

In terms of Sinopec, according to the accounting standards of Chinese enterprises, in the first three quarters, the company achieved operating income of 2.
453322 billion yuan, a year-on-year increase of 22.
6%; The net profit attributable to shareholders of the parent company was 56.
66 billion yuan, down 5.
6%
year-on-year.

Sinopec is a traditional refining and chemical integration company, and the decline in net profit is related to
the poor economy of the refining and chemical sector.
The company said that due to high oil prices and the epidemic, the demand for major chemical products was weak and gross profit narrowed, and ethylene equivalent consumption in the first three quarters fell by 1.
0%
year-on-year.

In terms of PetroChina, according to IFRS, in the first three quarters of 2022, the company achieved operating income of 2.
455401 billion yuan, an increase of 30.
6% over the same period of the previous year; The net profit attributable to shareholders of the parent company was 120.
271 billion yuan, an increase of 60.
1% over the same period of the previous year; Net cash flow from operating activities increased 38.
3% from the year-ago quarter, free cash flow increased significantly and the financial position was healthy
.

It can be seen that in the first three quarters of last year, Sinopec was slightly inferior in profit growth, and the "big brother" PetroChina continued to maintain rapid development
.

After experiencing a significant increase in revenue in 2022, what is the development trend of "three barrels of oil" in 2023? The answer to this question may still return to the price trend of crude oil
.

Looking forward to 2023, the trend of international crude oil prices is even more confusing
.
Galaxy Securities believes that the current uncertainty in oil prices mainly comes from the supply side, and it is necessary to pay close attention to the adjustment and implementation of OPEC+ production policies, Russian crude oil exports, the progress of Iranian nuclear negotiations, and the recovery speed of US production
.

From the supply side, OPEC+ implemented production cuts, and there is still uncertainty about the extent of the decline in production of Russian oil and petroleum products affected by price restrictions such as the European Union; On the demand side, affected by the expectation of a global recession, the growth rate of crude oil consumption will slow down, and the demand side will still suppress the upward height
of oil prices.
Galaxy Securities believes that the center of gravity of oil prices may fall in 2023, and the price of Brent crude oil is expected to be $80-90 per barrel
.

Overall, crude oil prices are still or remain high, coupled with the adjustment of domestic epidemic prevention policies and economic recovery, the three giants may still be able to continue to grow
steadily.

New energy has become the direction of industrial upgrading

In recent years, under the guidance of the dual carbon policy, "three barrels of oil" is also actively deploying new energy, investing in new energy construction such as photovoltaic, wind power, and hydrogen energy
.

"Big Brother" PetroChina released the "2021 Social Responsibility Report", in which it said that it will strive to achieve carbon peak around 2025, supply green zero-carbon energy to exceed its own consumption of fossil energy by 2035, and achieve near-zero emissions
around 2050.

CNOOC also officially released the "CNOOC Action Plan for Carbon Peaking and Carbon Neutrality", which aims to achieve carbon peak in 2028 and carbon neutrality
in 2050.

However, at present, the transformation of the Big Mac is still in the investment layout stage
.

Taking PetroChina, which has a wide layout in the field of new energy, as an example, its new energy projects cover wind power, photovoltaic, hydrogen energy, etc
.

In September 2021, PetroChina deployed and built 20 hydrogen purification projects in seven regions, including the Bohai Rim and Shaanxi-Gansu-Ningxia, which can realize the supply of "blue hydrogen", and the current hydrogen production capacity has exceeded 2.
6 million tons/year
.

In terms of wind power, in September 2022, PetroChina's first wind power project, the Jilin Oilfield Wind Power Project, officially started construction; In the same year, PetroChina's largest photovoltaic project to date, the 300 MW photovoltaic grid-connected power generation project in Yumen Oilfield, was officially launched
.

CNOOC's green layout is also steadily advancing, in the third quarterly report last year, CNOOC said that the jacket of the shore power project of the Bozhong-Kenli oilfield group completed offshore installation, the construction of the Gannan "Muguang complementary" project began, and the new energy sector Guangdong and Fujian regional companies were registered
.

Sinopec has positioned hydrogen energy as its core business of new energy, and currently has the largest
scale of hydrogen energy business development among the "three barrels of oil".
In its medium- and long-term hydrogen energy development strategy, Sinopec also clearly stated that it wants to build "China's No.
1 hydrogen energy company"
.
During the "14th Five-Year Plan" period, the company plans to plan and lay out 1,000 hydrogen refueling stations or oil-hydrogen combined stations
.

brief summary

PetroChina, Sinopec and CNOOC are the three giants in the Hong Kong stock market, and under the high level of oil prices, the performance of the three giants has also increased
greatly in recent years.
In terms of new energy layout, the three giants are also not reluctant, each setting clear development goals to help the development of domestic new energy
.

At present, the "Top 100 Hong Kong Stocks" selection, which is quite influential in the Hong Kong stock market, is in full swing
.
Launched in 2012 by Tencent.
com and Caihua News Agency, the "Top 100 Hong Kong Stocks" selection campaign aims to use big data and a series of scientific and fair evaluation indicators to analyze and calculate the data of Hong Kong listed companies in the previous year, select and publish the list of outstanding listed companies and award awards
.

After ten years, the influence of the "Top 100 Hong Kong Stocks" has expanded year by year, and has become an annual event in the Hong Kong stock market, as well as a new benchmark of value and investment vane in the Hong Kong capital market, which is deeply recognized and trusted
by professional institutions, the market and all sectors of society.

It is reported that the "2022 Hong Kong Listed Companies Development Summit Forum and the 10th Hong Kong Top 100 Awards Ceremony" will be held on February 24, 2023, the three giants are frequent visitors of the "Top 100 Hong Kong Stocks", and have won good rankings in the past nine "Top 100 Hong Kong Stocks" activities.