The hottest oil price is not equal to high profits

2022-08-12
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High oil prices do not mean high profits. Several Chinese and American oil companies are happy and several are worried.

the continued high international oil prices have not benefited the oil majors too much: natural disasters and geopolitical tensions have certainly pushed up oil prices, but the lack of global oil output caused by them has also dragged down the profit performance of oil companies on the other hand

the US Energy Information Administration (EIA) announced last week that the total net profit of the top 22 US oil companies in the third quarter of this year was US $26.5 billion, a year-on-year decrease of 11%. In addition to insufficient oil output, the high crude oil price has also led to a decline in the profit margin of the refined oil refining business. In contrast, although Chinese oil enterprises also face the risk of upstream and downstream price mismatch, they are in a relatively good position thanks to the advantages of resources and channels

oil price and production cannot have it both

eia data show that the 22 largest oil companies in the United States, including ExxonMobil and Chevron, have a total revenue of $301.8 billion and a net profit of $26.5 billion in the third quarter of this year. The total net profit in the quarter decreased by 11% year-on-year, but it was still 25% higher than the average net profit in the third quarter of. The EIA believes that the decline in the price of natural gas in the United States, as well as the decline in oil production and refined oil refining profits associated with high oil prices, have become important reasons for dragging down the profits of U.S. oil companies

the US government previously predicted that the persistently high oil price would bring $658billion in revenue to OPEC members this year, 9% higher than that in 2006, and it is obviously not that simple for oil companies to benefit from high oil prices

generally speaking, in the oil business, the net profit of the 22 largest oil companies in the United States in the third quarter fell by 18% year-on-year, of which the net profit of the global oil and gas exploration business fell by 5%. This is mainly due to the fact that the profit growth brought by high oil prices is offset by the decline in production as the economy recovers. In terms of natural gas exploitation, the natural gas price in the third quarter was $5.91 per thousand cubic feet, down from $5.96 in the same period last year. Although the price of natural gas fell only slightly, the natural gas extraction volume of major oil enterprises remained basically unchanged, making it difficult for enterprises to have a bright spot in the profits of natural gas extraction business

The EIA said that the average price of crude oil in the third quarter of this year increased by 12% compared with last year. The cost price of crude oil imported by American oil refining enterprises rose from $63.78/barrel in the third quarter of last year to $71.18/barrel in the third quarter of this year. In the same period, the average price of oil products fell to $85.17 per barrel from $85.37 last year. This made the gross profit margin of oil refining of American enterprises decline by 35% compared with the same period last year, while the net profit of the overall refining and sales business of major oil enterprises fell by 44% as planned

among all the business categories of the 22 major oil companies, the only business that achieved net profit growth in the third quarter was the downstream natural gas products and power business, but its growth rate was less than 1%

profit growth of Chinese enterprises

compared with the situation in the United States, the situation of Chinese oil enterprises in the third quarter of this year was relatively optimistic. Sinopec, whose main business is oil refining and sales, achieved a net profit of 13.758 billion yuan in the third quarter of this year, up from 12.764 billion yuan in the same period last year, an increase of 7.79%

according to the research of Orient Securities, investors are more worried about the pressure that the rising oil price will bring to Sinopec's refining sector in the future, but Sinopec can absorb part of the cost increase by means of raising the price of refined oil and obtaining subsidies

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