Chinese state-owned oil companies China National Petroleum Corporation (CNPC), Sinopec and China National Offshore Oil Corporation (CNOOC) recently announced business results for the first half of 2020.

CNPC and Sinopec reported net losses of more than 52.8 bil yuan in total. CNOOC realized net profits of 10.38 bil yuan, down 65.7% on year.

In the first half of the year, Sinopec revenue amount to 1,034.246 bil yuan, down 31% from the 1,498.996 bil yuan of the same period last year. The company reported a net loss of 22.882 bil yuan for the first half of 2020 compared to a net profit of 30.451 bil yuan of the same period last year. CNPC revenue in the first half of 2020 fell 22.3% on year to 929.045 bil yuan. It suffered a net loss of 29.986 bil yuan.

CNOOC, on the other hand, recorded a net profit of 10.38 bil yuan for the first half of the year even though this was down 65.7% on year. It is the only one of the three major state-owned oil companies to report a profit.

Owing to a sharp fall in crude prices and a decrease in energy demand, the oil industry faced a tough environment in the first half of 2020. Towards the second quarter, however, all three companies said that the environment was improving.

Since it might take time for the global economy to recover from the impact of COVID-19, Chinese state-owned oil companies consider taking measures such as reducing their expenditure. Sinopec would adjust its investment projects to reduce its total capital expenditure for the year by about 10% from its initial plans. CNPC is expected to cut its total capital expenditure for the year by 23% compared to 2019. CNOOC also planned to reduce its capital expenditure for the year, mainly in the form of overseas investments, by 11%.