The performance of China's Big Three energy giant moves to acquire overseas acquisitions

The three major energy giants in China have announced their first-half performance reports one after another. Stable performance and a series of ** plans have led to another wave of overseas expansion. Since August, the National Development and Reform Commission has successively approved three large-scale overseas acquisition projects of Sinopec, the world's second-largest refining and chemical company. Some analysts believe that the performance gains and large-scale bond issuance will provide support for Sinopec’s overseas acquisition ambitions.

High profit enhances acquisition momentum

According to the latest performance report of Sinopec, Sinopec had a net profit of 41 billion yuan in the first half of this year, an increase of 12% compared with the same period of last year. The performance of another energy giant CNPC on the 25th was also very optimistic. In the first half of the year, net profit attributable to shareholders of the company was as high as RMB 66.006 billion, a year-on-year increase of 1.2%. CNOOC also achieved a net profit of 39 billion yuan in the first half of this year, a sharp increase of 51% year-on-year.

“Energy companies' overseas investment has been done for 10 years. In fact, overseas development has entered a benign profit cycle. Because the prices of non-renewable resources tend to increase, the three major companies are likely to further capitalize on sufficient opportunities to find opportunities to meet the economy. Increase demand for oil and natural gas,” analysts told Nandu. The high profits of the three giant companies undoubtedly provide strong support for the acquisition of overseas oil and gas resources.

Investing in overseas resources is a worthwhile move

In fact, the overseas expansion of the three major energy giants has been making continuous efforts recently. Since August, the National Development and Reform Commission has successively approved a number of overseas acquisitions. Sinopec’s Iraqi Rumaila project became the first project in Iraq’s post-war oil bidding to enter the investment and cost recovery phase. In the first half of the year, it achieved a share of 690 million barrels of oil and gas production. At the same time, the National Development and Reform Commission approved CNOOC’s CNOOC Gas & Electricity Group Co., Ltd. to participate in the Curtissian Liquefied Natural Gas Development and Construction Project in Australia. PetroChina also invested in the risk exploration and test production projects in the middle zone of the eastern edge of the Binhai Basin, Aktobe, Kazakhstan. Approved.

According to industry sources, many overseas crude oil interests have not been reflected in the interim report, and there is still room for growth in actual corporate earnings. From the perspective of the investment cycle and the non-renewable nature of energy, investing in overseas resources is a worthwhile move.