'Three Barrels of Oil' Post RMB 258 Billion in Nine-Month Earnings Amid Energy Transition Push

Recently, China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (SINOPEC), and China National Offshore Oil Corporation (CNOOC) successively released their third-quarter reports for 2025. Affected by downward pressure on international oil prices, the profitability of the 'Three Barrels of Oil' has declined, with combined net profits reaching RMB 258.249 billion for the first three quarters. Of this, the third quarter alone yielded a net profit attributable to shareholders of RMB 83.226 billion, equating to daily earnings exceeding RMB 900 million.

The reports indicate that while consolidating their core oil and gas operations, the Three Barrels of Oil are actively accelerating strategic deployments to establish new energy growth trajectories.

Specifically, CNPC led in both revenue and net profit, shouldering half of the group's earnings burden. In the first three quarters, CNPC achieved operating revenue of approximately RMB 2.17 trillion and net profit attributable to shareholders of RMB 126.294 billion. During the third quarter alone, it recorded operating revenue of RMB 719.157 billion and net profit attributable to shareholders of RMB 42.287 billion.

During the first three quarters, CNPC maintained stable growth in oil and gas production while accelerating the development of its new energy business. Combined operating profits from oil and gas operations and new energy reached RMB 125.103 billion. Crude oil production stood at 714 million barrels, representing a 0.8% year-on-year increase; marketable natural gas production reached 3.98 trillion cubic feet, up 4.6% year-on-year; oil and gas equivalent production amounted to 1.377 billion barrels, rising 2.6% year-on-year. Wind and solar power projects generated a cumulative electricity output of 5.79 billion kilowatt-hours, up 72.2% year-on-year. Concurrently, the company accelerated its transition towards the mid-to-high end of the industrial chain, with its refining, chemical and new materials businesses achieving an operating profit of RMB 16.24 billion in the first three quarters. This included processing 1.041 billion barrels of crude oil, a 0.4% year-on-year increase; chemical product sales volume reached 29.59 million tonnes, up 3.3% year-on-year, with new materials production notably growing by 59.4%. Furthermore, the natural gas sales business focused on cost reduction and sales expansion, achieving sales of 218.541 billion cubic metres of natural gas in the first three quarters, a year-on-year increase of 4.2%, with operating profit reaching 31.279 billion yuan.

Looking at CNOOC's performance, the third quarter saw increased revenue but not profit. For the first three quarters, CNOOC recorded operating revenue of RMB 312.503 billion and net profit attributable to shareholders of RMB 101.971 billion. Specifically, third-quarter operating revenue reached RMB 104.895 billion, a year-on-year increase of 5.68%, while net profit attributable to shareholders stood at RMB 32.438 billion, a year-on-year decrease of 12.16%.

According to CNOOC's report, dual excellence in production and cost control underpinned its earnings resilience. During the first three quarters, benefiting from production contributions from projects such as the Deep Sea No.1 Phase II, Bozhong 19-2 oil and gas fields, and Brazil's Mero 3, CNOOC's net oil and gas production reached 578.3 million barrels of oil equivalent, a year-on-year increase of 6.7%. The natural gas business performed particularly well, with an 11.6% year-on-year increase, continuing the high growth momentum seen in the first half of the year.

Despite pressure on international oil prices, CNOOC still achieved oil and gas sales revenue of RMB 255.482 billion in the first three quarters.

Core cost indicators show CNOOC's competitive edge continues to strengthen. During the reporting period, the company maintained robust control over its cost per barrel, reducing it by 2.8% year-on-year to USD 27.35 per barrel, retaining its industry-leading position.

Furthermore, while safeguarding its core oil and gas operations, CNOOC is accelerating the development of new energy businesses such as offshore wind power, while advancing the research, development and demonstration of CCUS technology. The company is committed to building a diversified energy supply system encompassing both oil and gas and new energy sources. 

SINOPEC's financial performance reveals that losses within its chemical division significantly impacted its net profit for the first three quarters, though its overall financial position remains robust.

Specifically, during this period, SINOPEC recorded operating revenue of RMB 2.11 trillion, representing a year-on-year decrease of 10.7%. Net profit attributable to shareholders of the parent company stood at RMB 29.984 billion, down 32.2% year-on-year. Operating cash flow reached RMB 114.8 billion, a 13% increase year-on-year. Within this, the third quarter saw operating revenue of RMB 704.4 billion, down 10.9% year-on-year; net profit attributable to shareholders of the parent company was RMB 8.501 billion, a 0.5% decrease year-on-year.

By segment, exploration and development emerged as one of the few bright spots. Despite pressure on oil prices, this segment still achieved an EBITDA of RMB 38.085 billion in the first three quarters, becoming Sinopec's largest profit contributor. During this period, Sinopec produced 55.5 million tonnes of oil equivalent, a year-on-year increase of 2.2%. Domestic crude oil production reached 26.94 million tonnes, while natural gas production amounted to 31.1 billion cubic metres, a year-on-year increase of 4.9%. 

In the refining segment, Sinopec processed approximately 186 million tonnes of crude oil during the first three quarters, a 2.2% year-on-year decrease. It produced around 111 million tonnes of refined oil products and 33.34 million tonnes of chemical light oil, representing a 10% year-on-year increase. Within the marketing and distribution segment, Sinopec's total refined oil product sales volume reached 171 million tonnes during the first three quarters, a 5.7% year-on-year decrease.

In the chemicals segment, Sinopec recorded an EBIT loss of RMB 8.223 billion during the first three quarters, emerging as the primary drag on overall performance. Despite ethylene output reaching 11.588 million tonnes, a 15.4% year-on-year increase, and total chemical product sales volume hitting 63.68 million tonnes with full production and sales achieved, the sustained release of new chemical capacity in China led to depressed product prices, subsequently triggering the performance decline.

SINOPEC stated it will consolidate its refined oil market share, accelerate the development of automotive natural gas and charging/battery swapping services, steadily advance hydrogen-powered transport, and enhance the quality and efficiency of non-oil businesses, guided by the strategy of 'stabilising oil, expanding gas, promoting hydrogen, increasing electricity, and strengthening services'.