Su Yicheng: Who in the end has let PetroChina lose money?

On August 25, PetroChina, the country’s largest oil and gas giant, announced half-year results. PetroChina said that because of the lag in the rise of refined oil products in the country, policy-related losses in refining and natural gas imports have dragged down its performance in the first half of the year. According to the Chinese Accounting Standards for Business Enterprises, CNPC’s net profit attributable to shareholders of the company for the first half of the year was RMB 66,060 million, which was only a year-on-year increase of 1.2%. (Beijing Times, August 26)

The operation is "poor" and calls for an appointment. Sinopec’s "system-induced oil price increase" or "slowly decline" theory has just stopped, and China National Petroleum Corp. has taken over. The three major oil giants took turns and one of their noses said with tears that it was acting. What a pity, "Oil The three brothers were too amateur and cried poorly and fell into a show. Repeating the use of "who cries for children with milk" will only make people suspect that it is also asking for money for "parents" or for the next round of price hikes, and refreshing the ugly coefficient of monopolies.

Compared to the 29.4% growth in net profit in 2010, the transcripts submitted by CNPC this year are indeed much less. Why are the oil tycoons, who are making up for "the best of times", make no money? The reasons must be multi-faceted. They may be due to poor management or due to changes in the market. However, if it is said that domestic oil has "increased growth lag," it will be a bit blind. Say something.

The **patients whose domestic oil prices are “faster or slower” are well aware, and domestic oil prices are not low. Although according to a person in charge of the National Development and Reform Commission, the “Three Brothers of Oil” seems to be under pressure to lag behind the rise in oil prices, the arguments of the responsible person seem quite reasonable. He said that since 2003, the increase in domestic oil prices has been far less than the increase in the international market. Even when the cumulative increase in international oil prices reached 70% in the same year, domestic oil prices have not risen more than 25% after three consecutive increases. However, the fact is that, in Hong Kong across the river, when oil prices are not only "responsive" when they fall, prices are also lower than the mainland, and this so-called "lagging rate of growth" is hard to convince people.

To figure out what PetroChina means, it seems that this is no longer the case. It has already reached the point where "no price increase will not work". Not only is it necessary to increase prices, but the most important thing is that "increases" (note that it is not sensitive) must keep up. Not only is the price of oil, but the price of natural gas has to rise. Otherwise, the loss may increase. If you do not want to increase prices, you can also ask the country to give adequate subsidies. Looking at the vertical view, this semi-annual report is not like a performance statement. It is more like a price increase notification.

In fact, the state has already given enough subsidies for natural gas imports. The General Administration of Customs, the Ministry of Finance, and the State Administration of Taxation have issued a document clarifying that import natural gas and liquefied natural gas (LNG) will be subject to VAT rebates for import links, from January 1, 2011 to December 1, 2020, Under the premise of price inversion, the import value-added tax can be fully refunded. According to preliminary calculations, in the two years of 2010 and 2011, PetroChina will be able to return more than 3 billion yuan of value-added tax. According to the current arrangement of imported gas volume and price calculation, it is still possible to refund more than RMB 6 billion by next year.

Where is the loss of PetroChina? According to statistics, as of the end of 2010, the three major oil companies have invested in overseas oilfields and construction projects totaling 144, and the cumulative amount of investment has reached as much as 70 billion U.S. dollars, or about 448 billion yuan. *** . Contrary to the high amount of overseas investment, the annual profits of the three major oil companies from overseas projects are difficult to equate with investment costs. A 2010 report from the University of China National Petroleum Corporation (China National Petroleum Corporation) shows that the three major oil companies have lost two-thirds of their overseas projects due to factors such as the management system and the international investment environment.

Although the "two-thirds" loss may be somewhat exaggerated, the state of overseas investment by state-owned enterprises is indeed not very optimistic. Doing the business of losing money is the reality that most companies have to face. Now, in the face of the "poor performance," China National Petroleum Corporation should comprehensively reflect on it and find an effective solution. In any case, it should not "lose the outside and go home." Only by facing up to the problem can we truly solve the problem.