Petroleum and Petrochemical Industry Annual Report 2021 and Quarterly Report 2022 Financial Overview
The petroleum and petrochemical industry is in a high boom period in 2021 and the first quarter of 2022. 2021 petroleum and petrochemical industry achieved net profit attributable to the mother of 49.24 billion yuan, an increase of 61.2% year-on-year, and gross margin of 15.6%, an increase of 1.7 pct year-on-year. 1 quarter of 2022 achieved net profit attributable to the mother of 14.98 billion yuan, a decrease of 0.4% year-on-year, and gross margin of 14.6%, a decrease of 0.8 pct year-on-year and 0.7 pct year-on-year. In the first quarter of 2022, the Russian-Ukrainian conflict further pushed up oil prices and raised costs for some companies, resulting in a divergence in profitability. Industry-wide construction in progress grew at a high rate, and in the first quarter of 2022, the overall petroleum and petrochemical sector reached 205.08 billion yuan in construction in progress, up 35.1% year-on-year.
In terms of oil and gas prices, the average price of WTI/Brent crude oil in the first quarter of 2022 was US$94.5/97.7/barrel, up 63.4%/59.8% y-o-y. Since 2022, the supply side of crude oil is tight, OPEC’s production increase is progressing slowly, U.S. crude oil production is still below the pre-epidemic level, and Russia may face further sanctions. In the short term, it is difficult to ease the imbalance between crude oil supply and demand in the short term, and crude oil prices may remain at a high level in 2022.
Risk: Risk of recurring epidemic, intensified competitive landscape, risk of price decline.