TPET Latest Report

Trio Petroleum's Financial Performance

As of October 31, 2024, Trio Petroleum's total operating revenue was RMB772.29 million, a year-on-year decrease of 27.6% from RMB10.36 billion in the same period of 2023. Although direct year-on-year analysis is not possible, it can be inferred that the company's operating revenue has been affected by various factors.

Key Financial Data

1. Trio Petroleum's total operating revenue in 2023 was RMB1.036 billion, a year-on-year decrease of 27.6%, indicating poor market performance for the company in that year.

2. The net oil equivalent production also decreased to 1.92 million barrels, a year-on-year decrease of 16.2%, further illustrating the possible impact of the company's production reduction on operating revenue.

3. With the gradual recovery of oil prices, the market share of offshore oil services has increased to 30%, as reported in 2023.

4. Trio Petroleum plans to launch several new projects in 2023, including the Bohai 19-6 condensate gas field and the Lufeng 12-3 oilfield development project, which may provide support for future revenue growth.

Peer Comparison

1. Industry-wide analysis: The oil and gas industry as a whole is affected by economic conditions, supply and demand relationships, and policy changes. In recent years, global oil and gas capital expenditures have significantly decreased since 2015, and it is expected that the overall supply of crude oil will be limited in the next two years, while OPEC+ maintains its production increase policy. These factors may affect the industry's overall revenue level.

2. Peer evaluation analysis: Compared with other companies in the same industry, Trio Petroleum's operating revenue performance is affected by other companies in the same industry. Although the market share of offshore oil services has grown, the company's own operating revenue has decreased year-on-year, possibly reflecting its weakness in the competition.

Conclusion

Trio Petroleum's financial performance in 2023 has been affected by market demand, price fluctuations, competitive environment, and the company's own production capacity. Although the recovery of oil prices may bring improvements in market demand, the company's operating revenue and net oil equivalent production have decreased year-on-year, indicating some operating pressure. The launch of new products and projects may help improve the company's market performance in the future.

Opportunities

1. The launch of new products and projects may bring new sources of revenue for the company, especially the Bohai 19-6 and Lufeng 12-3 oilfield development projects.

2. With the recovery of oil prices, the improvement in market demand may help boost the company's operating revenue.

3. The growth of the offshore oil services market share provides opportunities for further development for the company.

Risks

1. The decrease in the company's operating revenue and net oil equivalent production may affect its future cash flow and profitability.

2. The uncertainty of the industry's overall supply and demand relationship may lead to revenue fluctuations, especially in the context of declining global oil and gas capital expenditures.

3. Policy changes favoring renewable energy may put pressure on traditional oil companies and affect the company's long-term development strategy.