Three Big Oil Companies In 2010 Profits Exceeded 260 Billion Yuan

Newly released domestic oil companies

In this regard, the insiders believe that, in the case of domestic oil prices have been fully integrated with the international situation, although the special income has been collected and other measures to curb the high profits of domestic oil companies, but now it is still far from enough.

Therefore, under the situation that the upstream interest mechanism has not been straightened out, some oil and gas resources originally owned by the whole people are now being acquired by a few enterprises.

Sinopec's annual report 2010 shows that its upstream exploration and mining division has achieved a profit of 46 billion 700 million yuan and a gross profit margin of 39.9%, which contributed nearly 7 of its profits in the whole year.

By comparison, PetroChina, which has more resources, has been more lucrative in the upstream.

Data show that in 2010, PetroChina achieved a total profit of 153 billion 703 million yuan in the upstream exploration area, which is 13 billion 700 million yuan more than its net profit of 140 billion yuan in the whole year, and its gross profit margin is as high as 36.1%.

Data also showed that PetroChina's crude oil output in 2010 was 857 million 700 thousand barrels, of which 102.3 of overseas oil and gas equivalent output was million barrels.

It can be estimated that nearly 90% of its crude oil output comes from China, which means that its huge profits depend on domestic resources.

Sinopec, its annual report disclosed that in 2010, the company's exploration and mining division sold 43 million 880 thousand tons of crude oil.

According to the annual report, the crude oil produced in China is 35 million 130 thousand tons, indicating that the company's 80% profit in the upstream comes from China.

Although the upstream business needs to face the cost of resource tax and special income, the cost of high oil price is still low.

The annual report shows that in 2010, CNPC paid a total resource tax of about 9 billion 800 million yuan and a special oil income of 52 billion 200 million yuan, which accounted for only about 45% of its upstream profits, indicating that the cost of domestic resources was relatively low.

Another set of data is also evidence that the gross profit margin of PetroChina in the upstream exploration sector reached 36.1% in 2010, while Sinopec's gross margin was as high as 39.9%.

In this regard, there are people in the industry who believe that under the circumstances that domestic oil prices have completely integrated with the international market, we should further strengthen the interests chain of upstream and downstream by increasing the special income and the resource tax, so as not to avoid the fact that the oil and gas resources shared by the whole nation should be a tool for a small number of enterprises and individuals to gain huge profits when the oil price is rising rapidly.

In terms of resource tax, the pilot area is being expanded from volume collection to ad valorem levy.

According to CNPC's annual report, the Ministry of Finance and the State Administration of taxation have already issued a notice to decide to implement the reform of crude oil and natural gas resources tax in Chongqing, Sichuan, Inner Mongolia, Guangxi and Hubei since December 1, 2010.

The crude oil and natural gas resources tax is assessed at ad valorem, with a tax rate of 5%.

Previously, the program has been the first to be implemented in Xinjiang.

From the perspective of the profitability of the three major oil companies, there is still much room for improvement.

However, there are still some loopholes in the way of collection.

According to the current regulations, its starting point is 40 dollars, that is, when the price of international crude oil exceeds that price, the excess income obtained by domestic oil mining enterprises in selling domestic crude oil will be levied in proportion to the income in proportion.

For the upstream and downstream integrated oil companies, it can still artificially lower the selling price of crude oil so as to achieve the purpose of paying less profits.

For example, by comparing the annual reports of PetroChina and Sinopec, the average selling price of crude oil between the two has a price difference of nearly 200 yuan.

Due to the decrease in sales revenue, the amount of special oil payments it will pay will also drop.

According to its annual report, most of the crude oil produced by the exploration and mining division of the company is used for refining and chemical business of our company, and only a small part of crude oil is exported to other customers. This means that even if the selling price has been reduced, it will still be pferred between different departments of the entire company, and it will also leave no water for foreigners.