The oil and gas industry continued to recover, and the "two barrels of oil" made a net profit of nearly 100 billion yuan in the first half of the year!

More than half of 2021, how did the profit performance of the "two barrels of oil" in the first half of the year?

On July 1, PetroChina and Sinopec released a half-year performance pre-profit announcement.

PetroChina expects a net profit of 45.014 billion yuan to 60.014 billion yuan in the first half of 2021. Compared with the same period last year, it will turn losses into profits, increasing by 75 billion yuan to 90 billion yuan.

Sinopec expects a net profit of 36.5 billion yuan to 38.5 billion yuan in the first half of 2021, and will also turn losses into profits.

According to this, in the first half of this year, the total net profit of the "two barrels of oil" will reach 81.514 billion yuan to 98.514 billion yuan, approaching a high level of 100 billion yuan.

The economic recovery and increased oil demand, the rise in oil prices, and the company's efforts to improve quality and efficiency are the main reasons for the pre-profit of the "two barrels of oil".

PetroChina said that in the first half of this year, affected by the increase in demand brought about by the recovery of the world economy, international crude oil prices increased sharply year-on-year, while the domestic economy continued to maintain a steady growth momentum, and the market demand for oil and gas products improved significantly.

The company seized the favorable opportunity, adhered to the five development strategies of innovation, resources, market, internationalization, and green and low-carbon, continued to optimize production and operation, further promoted quality and efficiency improvement, and vigorously strengthened the cost and expense control of the whole industry chain, the sales volume and price of most of the company's oil and gas products increased year-on-year, and the operating performance increased significantly year-on-year and compared with the same period in 2019.

In addition, the successful completion of the equity transfer of the pipeline by its subsidiary, Kunlun Energy Co., Ltd., also contributed to the performance growth. According to the announcement of the equity transfer agreement announced in December last year, Kunlun Energy sold 60% of the shares of Beijing Pipeline Company and 75% of the shares of Dalian LNG Company to the State Pipeline Network Group, and the basic transaction consideration was about 40.886 billion yuan (subject to adjustment according to the price adjustment mechanism under the equity transfer agreement), all of which will be paid in cash by the State Pipeline Network Group. The transaction closed on March 31 this year.

Sinopec

Sinopec said that at the beginning of 2020, due to the dual impact of the new crown pneumonia epidemic and the collapse of oil prices, the global consumption of petroleum and petrochemical products shrank sharply, and the company's production and operation were greatly impacted, and the operating loss in the first half of 2020 was lost.

In the first half of 2021, the company's operating performance improved significantly year-on-year, and also achieved good growth compared with the same period in 2019, mainly due to the overall improvement of the global epidemic situation since the beginning of this year, the international crude oil price fluctuated upward, the domestic overall epidemic prevention and control and economic and social development achievements continued to consolidate, and the market demand for petroleum and petrochemical products recovered quickly.

The company seized the opportunity to reduce procurement costs, optimize production and operation, vigorously expand the market and expand sales, and promote the overall efficiency of the industrial chain.

The performance of the "two barrels of oil" in the first half of the year has increased significantly compared with the same period in 2020, bringing good news to related oil service engineering equipment enterprises.

The oil market continued to recover, and crude oil prices continued to rise. On July 1, WTI crude rose $1.76 to settle above $75.23 a barrel for the first time since October 2018, and Brent futures rose $1.22 to settle at $75.84 a barrel.