The smallest of the three major oil companies CNOOC 2011 net profit is once again approaching Sinopec.

Report shows that, in accordance with international accounting standards, PetroChina, Sinopec, CNOOC, respectively, to achieve net profit attributable to parent company of 132.961 billion yuan, 71.697 billion yuan, 70.26 billion yuan in oil as the only net profit year on year decline in business, a decline of Sinopec for 5.0% year-on-year increase slightly to 1.4 percent, CNOOC surged 29.1 percent growth rate hit a record high.

Market watchers said that, if not consider the CNOOC, ConocoPhillips Penglai oilfield spill its yield, CNOOC's annual report this year have been or will be more beautiful. CNOOC, said the oil spill it daily to reduce about 2.2 million barrels of crude oil production.

The severe impact of the loss by the refining segment, PetroChina and Sinopec have to develop new profit growth point, such as oil sales links and downstream fine chemical(http://www.agile-news.com/).

Refining loss of 95(Finance News http://www.agile-news.com/).8 billion yuan

CNOOC, not the drag of the refining segment to increase the upstream exploration and production efforts, net profit has been close to the nation's second-largest oil company Sinopec.

The report shows that in PetroChina and Sinopec by high international oil prices, the domestic oil price adjustments are not in place and other factors refining segment continues to incur losses, loss of 35.8 billion yuan, Sinopec, PetroChina loss of 60.087 billion yuan.

It is worth noting that the petrochemical production of refined oil 128 million tons, much higher than the 87.15 million tons in oil, but their losses are much lower than in oil.

Zhuo record information analyst Zhang Bin to the China Economic Times reporters, two oil processing cost of crude oil, petroleum refer to the Daqing crude oil prices higher, and in the petrochemical processing imported crude oil, the price is relatively low.

Comprehensive introduction of a special oil income levy last year, further compression of the three major oil companies upstream exploration and production profit, 2011 special oil income levy from 521 billion yuan in 2010 to 102.458 billion yuan, CNOOC paid $ 31.9 billion, Sinopec to 37.682 billion yuan.

Yu information analyst Wang Jintao, said in an interview with the China Economic Times reporter in 2011 CNOOC oil production of 258.5 million barrels, the oil of 886.1 million barrels of crude oil than in the CNOOC oil and therefore subject to special income gold impact is much lower.

Outlook can hardly be optimistic

As the starting point for the particular income levy transferred $ 55 from $ 40 / barrel / barrel, PetroChina and CNOOC tax costs will decline.

Bin believes that this will help to increase the two oil companies, especially to increase the net profit of the upstream oil exploration.

And the following tour in the petrochemical, refining known in 2012 downstream chemicals segment will be cut to make up for the role of the refining losses.

Wang Jintao said to the reporter analysis, subject to the national economic slowdown, a quarter of weak downstream demand of the chemical industry, annual economic no significant improvement in the overall profitability of the downstream chemical plate will be more immediately affected, this year the demand side petrochemical companies, the profit impact than the tax level.

Sinopec Shanghai Petrochemical chairman Rong Kwong Road, in an interview with the China Economic Times said that if the state can not adjust the price of refined oil, refining profits of an enterprise will continue to shrink in the context of international oil prices remain high, the loss of the status of It is difficult to be markedly improved.

Rong Kwong Road, said that since 2008 the central budget subsidies of two major oil companies for deep losses in recent years, the country again is not a loss of oil refining enterprises subsidies.

National Development and Reform Commission during the year, late March, the second increase in oil prices, shortly thereafter, the Ministry of Finance issued good refined oil prices to reform the financial subsidies to release the funds required in accordance with Treasury set aside reform and fiscal subsidies in refined oil prices in the 2011 annual notification to do the work of the issuance of the taxi, rural passenger transport and other industries earmarked subsidies.

Looking for new profit growth point

To compensate for the loss of refining plate, CNPC and Sinopec have been looking for new growth points of interest.

The report shows that the end of 2011, Sinopec has a gas station 30121, which franchise gas stations dropped from 515 in 2010 to 15 at the end of 2011, the oil has a gas station 19362, in which the franchise non-asset-type gas stations there are 570.

Wang Jintao believes that Sinopec 'to adjust the marketing structure, the actual reduction of wholesale and direct sales share, increase retail market share.' In the future reform of refined oil gradual market-oriented, international oil price ups and downs, or makes frequent domestic retail price adjustments, the retail business will undoubtedly be an important section of the profits of PetroChina and Sinopec to fight. '

Report shows that 2011 Sinopec retail of refined oil products accounted for 66.31% of its total domestic oil product sales, an increase of nearly 4 percent over 2010, while direct sales and wholesale volume a different rate of decline, including gasoline, diesel retail a significant increase in wholesale volume was up sharply reduced.

Non-oil business to become another profit engine of growth for oil companies, Sinopec has about 19,200 convenience stores in the country, the 2011 non-oil turnover to achieve 8.26 billion yuan, up 44.2 percent surge, these convenience stores are mostly open in the refueling station.

Bin worried that with the expansion of the two major oil companies in oil sales, as well as reduce the number of export refined oil, the living space of the private stations will be further squeezed, 'batch of oil is difficult or will become the norm.

Sinopec is also deep plowing to the money it easier for the chemical industry, last week, Sinopec and Saudi Basic Construction Investment Company, a joint venture of large-scale petrochemical project - sand (Tianjin) Petrochemical 260,000 t / year polycarbonate project started after the two sides have 100 tons / year ethylene project in the local community in the oil in recent years launched a lot of chemical projects, especially large chemical fertilizer.

Rong Kwong Road, through the production of high value-added fine chemical products, to compensate for the loss of part of the refining segment.