Author: Chen Ming

Source: brokerage China

Saudi Arabia's cabinet approved the decision to join the Shanghai Cooperation Organization on March 29, according to Reuters quoted by the World wide Web. It is worth noting that Saudi Arabia has made frequent actions in China recently, and it has made more money and silver to increase its investment in China. Saudi Aramco announced two huge investment plans in China two days ago.

Petrochina and CNOOC both reported record net profits on the evening of March 29th. At this point, all the annual reports of the "three barrels of oil" have been disclosed. For the whole of 2022, Petrochina, CNOOC and China Petroleum & Chemical have a combined revenue of 6.98 trillion yuan and a combined net profit of 357.4 billion yuan, equivalent to nearly 1 billion yuan a day. By the end of 2022, the total number of shareholders of "three barrels of Oil" exceeded 1.2 million.

In addition, Petrochina also announced that night that the board of directors approved and requested the general meeting of shareholders to give the board of directors a general authorization to buy back shares.Repurchase A shares not exceeding 10% of the number of A shares issued by the company and / or H shares not exceeding 10% of the number of H shares issued by the company.The board of directors approves and requests the shareholders' general meeting to authorize the board of directors generally and unconditionally to decide and deal with debt financing instruments issued by the company not exceeding (including) RMB 100 billion during the relevant authorization period.

Saudi Cabinet approves the country's status as a dialogue partner in the SCO

According to CCTV news, the Saudi state news agency reported on March 29 that the Saudi cabinet approved a document recognizing the country's status as a dialogue partner in the Shanghai Cooperation Organization at its weekly meeting that day.

In the Samarkand Declaration issued by the Council of Heads of State of the Shanghai Cooperation Organization in September 2022, it was mentioned that "the memorandum on granting dialogue partnership status to the Arab Republic of Egypt, the Kingdom of Saudi Arabia and the State of Qatar has been signed."

According to Xinhua News Agency, the SCO was established in Shanghai on June 15, 2001, and its founding members are China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. In 2017, the SCO Astana Summit decided to grant membership to India and Pakistan, increasing the number of member states to eight.

At present, the SCO countries include:

Eight member states: China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India and Pakistan.

Four observer states: Afghanistan, Belarus, Iran, Iran and Mongolia. The 2021 SCO Dushanbe Summit launched the process of granting membership to Iran, while the 2022 Samarkand Summit launched the process of granting membership to Belarus, and the two countries are now implementing the relevant procedures.

Nine dialogue partners: the Republic of Azerbaijan, the Republic of Armenia, the Arab Republic of Egypt, the Kingdom of Cambodia, Qatar, Nepal, the Kingdom of Saudi Arabia, the Republic of Turkey and the Democratic Socialist Republic of Sri Lanka. The 2022 Samarkand Summit launched the process of granting dialogue partner status to Bahrain, Kuwait, Maldives, Myanmar and the United Arab Emirates, and the five countries are currently implementing relevant procedures.

It is worth noting thatIn the past two days, Saudi Aramco, the world's largest oil company, has successively announced two huge investment plans in China, totaling more than 100 billion yuan.

On March 26, Saudi Aramco announced the establishment of a joint venture in China to start the construction of a large-scale oil refining and chemical plant. This time, Saudi Aramco, together with Northern Industrial Group and Panjin Xincheng Industrial Group, plans to build a large-scale integrated oil refining and chemical plant in Northeast China, with a total investment of 83.7 billion yuan.

On March 27th, Saudi Aramco announced that it had signed a final agreement to acquire a 10 per cent stake in China's private refining leader Rongsheng Petrochemical (002493) for 24.6 billion yuan.

Petrochina made nearly $150 billion last year.

Petrochina announced its 2022 operating results on the evening of the 29th. During the reporting period, Petrochina achieved an operating income of 3.24 trillion yuan, an increase of 23.9% over the same period last year, a net profit of 149.38 billion yuan, an increase of 62.1% over the same period last year, and a free cash flow of 150.42 billion yuan, an increase of 88.4%. The company's revenue, profit, free cash flow and other operating indicators have reached an all-time high.

In terms of oil and gas business, in 2022, the domestic business achieved crude oil production of 767.4 million barrels, an increase of 1.9 percent over the same period last year; marketable natural gas production of 4471.3 billion cubic feet, an increase of 5.9 percent over the same period last year; oil and gas equivalent production of 1512.6 million barrels, an increase of 3.8 percent over the same period last year.

In 2022, Petrochina's overseas business produced 138.8 million barrels of crude oil, an increase of 3.3 percent over the same period last year; marketable natural gas production of 203.7 billion cubic feet, an increase of 3.0 percent over the same period last year; and oil and gas equivalent production of 172.8 million barrels, an increase of 3.2 percent over the same period last year.

In 2022, Petrochina produced 906.2 million barrels of crude oil, an increase of 2.1 percent over the same period last year, marketable natural gas production of 4675.0 billion cubic feet, an increase of 5.8 percent over the same period last year, and oil and gas equivalent production of 1685.4 million barrels, an increase of 3.7 percent over the same period last year. At the end of the reporting period, the Group owned 240.7 million acres of oil and gas (including coalbed methane) exploration and mining rights, of which 203.0 million acres and 37.7 million acres were exploration rights and 37.7 million acres; 441 net wells were being drilled.

In the new energy industry, by the end of 2022, the installed capacity of Petrochina wind power 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.

In terms of industry outlook, Petrochina said that in 2023, the world economy is expected to continue to maintain slow growth, there are still many unstable and uncertain factors, and the volatility of international crude oil prices is likely to increase. As the effect of stable macroeconomic growth continues to emerge, China's economic growth will pick up overall; demand in the domestic oil product market will recover, and competition will remain fierce.

In 2023, Petrochina plans to produce 912.9 million barrels of crude oil, 4888.9 billion cubic feet of marketable natural gas and 1,727.7 million barrels of oil and gas equivalent. In addition, the Group plans to process 1293.1 million barrels of crude oil.

The net profit of CNOOC doubled.

On the evening of the 29th, CNOOC also disclosed its annual report. For the whole of 2022, the company's total income reached 422.2 billion yuan, an increase of 72 percent over the same period last year, and net profit reached 141.7 billion yuan, an increase of 102 percent over the same period last year, a record high. CNOOC's free cash flow reached 110.8 billion yuan in 2022, with a capital-to-debt ratio of 18.3% at the end of the year.

It is understood that CNOOC is one of the largest independent oil and gas exploration and production groups in the world, and its main business is exploration, development, production and sale of crude oil and natural gas. In 2022, CNOOC achieved a net oil and gas production of 624 million barrels of oil equivalent, an increase of 8.9 percent over the same period last year and another all-time high.

By the end of 2022, CNOOC had total assets of about 929 billion yuan, net proven reserves of about 6.24 billion barrels of oil equivalent, and annual average daily net production of about 1.71 million barrels of oil equivalent. In 2023, the company expects capital expenditure of 100 billion-110 billion yuan, with an production target of 6.5-660 million barrels of oil equivalent.

In 2022, international oil prices were affected by geopolitics, crude oil inventories, economic recession expectations and other factors, showing an inverted "V" trend throughout the year. The average price of Brent crude oil was 99 US dollars per barrel, up 40% from the same period last year.

Looking forward to 2023, CNOOC said that due to multiple factors, the momentum of global economic growth continues to weaken, inflation is high in many countries, and the risk of financial crisis increases. The long-term improvement of China's economic development will inject strong momentum into the world economic development and provide strong support for the growth of energy demand.

CNOOC said that oil and gas will continue to dominate the structure of global energy demand for a long time. World oil and gas demand is expected to maintain growth, especially China's oil and gas demand provides a broad space for the company's development. At the same time, China is rich in offshore oil and gas, wind energy and other resources, and has great potential for marine energy development.

China Petroleum & Chemical's net profit fell slightly

A few days ago, China Petroleum & Chemical also disclosed its annual report. In 2022, China Petroleum & Chemical achieved operating income of 3.32 trillion yuan, an increase of 21.06 percent over the same period last year, while net profit was 66.302 billion yuan, down 6.89 percent from the same period last year.

In 2022, the net cash income from the company's operating activities was 116.3 billion yuan, a decrease of 108.9 billion yuan compared with the same period last year, mainly due to the concentrated payment of deferred taxes in the fourth quarter of last year and the decline in operating efficiency.

By the end of 2022, China Petroleum & Chemical had total assets of 1.95 trillion yuan, an increase of 3.1 percent over the end of last year; total liabilities exceeded 1.01 trillion yuan, an increase of 3.9 percent over the end of last year, and an asset-liability ratio of 51.95 percent. In 2023, the company plans to spend 165.8 billion yuan on capital.

China Petroleum & Chemical said that looking forward to 2023, China's economic performance is expected to achieve an overall improvement. Domestic demand for natural gas, oil products and chemical products is expected to grow rapidly. Taking into account the changes in global supply and demand, geopolitics, inventory levels and other effects, international oil prices are expected to fluctuate in the middle and high levels.

In 2023, the company plans to produce 280.23 million barrels of crude oil, including 29.03 million barrels abroad, and plans to produce 1.2918 trillion cubic feet of natural gas. For the whole year, it is planned to process 250 million tons of crude oil and produce 146 million tons of oil products. In addition, the company plans to produce 14 million tons of ethylene for the whole year.

China completes the first LNG cross-border RMB settlement transaction

China's first purchase transaction of imported liquefied natural gas (LNG) settled in RMB was completed on March 28, marking a substantial step forward in the exploration of cross-border RMB settlement transactions in the field of oil and gas trade, Xinhua reported.

It is understood that this single transaction was reached between CNOOC and TotalEnergies SE Energy at the Shanghai Oil and Gas Trading Center. LNG resources come from the GCC country, the United Arab Emirates, and the import LNG transaction volume settled in RMB is about 65000 tons.

According to the data of the General Administration of Customs, in 2022, China imported more than 500 million tons of crude oil and more than 100 million tons of natural gas, of which 63.44 million tons were imported by LNG. With the increasing acceptance of RMB in the international market, the conditions for both sides of oil and gas trade to try to settle in RMB are becoming more and more mature.

Yu Jin, deputy general manager of CNOOC, said that promoting the settlement of international LNG purchases in RMB is a useful practice for CNOOC to promote the globalization of energy trade and create a diversified ecology of LNG transactions. CNOOC will continue to innovate the business model of international LNG trade to promote the positive interaction between international and domestic markets.

Edit / phoebe