Jinwu Financial News | According to Haitong International Research, profits in the upstream oil and gas resources sector remained high, and three barrels of oil remained relatively profitable against the backdrop of falling international oil prices; revenue and net profit from the oil service equipment sector maintained positive year-on-year growth for nine consecutive quarters; profits in the petrochemical sector continued to recover, with significant improvements in private refining; and profits in the photovoltaic film sector in the downstream materials sector improved.
According to the bank, according to the latest S&P Global (S&P Global) report quoted in the 2023 report of CNOOC Oil Services (02883), the global oil industry's upstream capital expenditure in 2023 was US$568.7 billion, +10.6% year on year; the global upstream exploration and development capital expenditure is expected to be US$607.9 billion in 2024, or +5.7% year over year.
The bank said that international oil prices are fluctuating at a high level, and it is recommended to focus on: (1) oil and gas exploration companies, CNOOC (00883), CNPC (00857), Sinopec (00386), etc.; (2) CNOOC, CNOOC development, offshore oil engineering, etc. benefiting from the increase in capital expenditure of oil companies; (3) lightweight and coal chemical companies satellite chemistry, Baofeng Energy, etc. In addition, focus on refining and chemical fiber leaders Hengli Petrochemical, Xinfengming, Tongkun Co., Ltd., and Rongsheng Petrochemical, which are gradually improving profits.