How do you view the huge losses in the semi-annual reports of oil giants?

On August 27, PetroChina issued an announcement showing that in the first half of this year, the company achieved revenue of 929.

On August 30, another oil giant, Sinopec, also released a performance report for the first half of the year.

In the first half of this year, the new crown pneumonia epidemic that swept the world and the deep drop in international oil prices brought unprecedented shocks and challenges to the energy industry, especially the petroleum industry.

The sudden epidemic has had a major impact on the global economy.

The sluggish demand and the sharp drop in prices have made life difficult for the international energy giants.

However, at the same time of huge losses, it must be noted that the operation of domestic oil and gas companies still retains some positive factors.

Even in the loss-making oil refining and chemical sectors, there are bright spots.

With the effective control of the domestic epidemic and economic activities gradually returning to normal, the operating conditions of domestic oil companies are gradually improving.

From the perspective of capital market performance, on the first trading day after PetroChina announced its semi-annual report, its A shares and Hong Kong stocks both rose slightly, indicating that the market has already expected its losses in the first half of the year and its prospects are still relatively optimistic.

However, in the second half of the year and for a long time after now, oil companies are still facing relatively heavy operating pressure.

Faced with the pressure, various oil companies have taken corresponding measures.
Different from the bankruptcy and layoffs of foreign oil companies, domestic oil companies focus on cost control.
The financial report shows that in the face of an unfavorable situation, PetroChina has strengthened its cost control.
In the first half of 2020, the company's operating expenses were 935.
08 billion yuan, a year-on-year decrease of 16.
9%; capital expenditures were 74.
761 billion yuan, a year-on-year decrease of 11%.
For the full year of 2020, PetroChina’s capital expenditure is expected to be 228.
5 billion yuan, a year-on-year decrease of 23%.

In addition to reducing costs, we must increase efficiency.
According to the reporter's understanding, in the exploration and production business, PetroChina will continue to stabilize oil and gas, and promote the development of exploration and development efficiency; in the refining and chemical business, it will adhere to structural adjustments and continue to deepen the transformation and upgrading.
Strengthen the controlled production management, and tilt resources to profitable companies; in the product oil sales business, actively respond to market changes and oil price fluctuations, strengthen regional coordination, oil non-mutual promotion, and refined marketing.
Deeply tap the potential of non-oil business and consolidate the diversified profit creation pattern.
The natural gas business, which has been growing rapidly in recent years, is also the focus of PetroChina's next reform effort, and will make every effort to increase the effectiveness of natural gas sales expansion.

Transfer from: Economic Daily

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