Shandong Xinchao Energy Corporation (600777.SH): Oil and gas production reaches new historical record high, revenue expected to reach 8.849 billion yuan in 2023.

On the evening of April 26, Shandong Xinchao Energy Corporation, a main board-listed A-share company (600777.SH), disclosed its annual report for 2023. The report shows that in 2023, Shandong Xinchao Energy Corporation achieved operating income of 8.849 billion RMB, and a net profit attributable to the parent company of 2.596 billion RMB. By the end of 2023, the company's total assets reached 33.581 billion RMB, an increase of 7.22% from the end of 2022, achieving three consecutive years of asset growth with net assets surpassing 20 billion RMB. It is worth noting that the company also released its first quarter report for 2024 on the same day, showing a very impressive performance. In the first quarter of 2024, the company achieved operating income of 2.135 billion RMB, a year-on-year increase of 6.64%, achieving the best historical performance for the same period. By the end of the first quarter of 2024, the company's total assets reached 3.391 billion RMB, an increase of 2.41% from the previous year. In 2023, the global supply and demand for oil was generally loose, with WTI oil prices fluctuating between 70-90 US dollars per barrel throughout the year. Geopolitical factors, high interest rate environments, and international events all had a significant impact on oil prices. By the end of 2023, the WTI closing price was 71.89 US dollars per barrel, a year-on-year decrease of 18.09% compared to 2022. Facing the complex operating environment, Shandong Xinchao Energy Corporation actively seized the favorable opportunity for the oil and gas industry to recover and grow during the reporting period. The company increased its efforts in oil and gas development, achieving a new historical high in oil and gas production equivalent. They achieved an annual crude oil production of 16.0684 million barrels, a 9.19% increase from 2022, and a natural gas production of 6.1932 million barrels of oil equivalent, a 13.88% increase from 2022. They also took effective measures to reduce costs and improve efficiency, maintaining a relatively stable performance and further strengthening the company's foundation for future development. Furthermore, Shandong Xinchao Energy Corporation also made significant progress in optimizing its debt structure. The management of Shandong Xinchao Energy Corporation stated that the company's total debt has decreased from nearly 1.6 billion US dollars in mid-2021 to the current 1.08 billion US dollars, reducing debt by about 500 million US dollars in two years and further optimizing the debt scale and structure. With its solid financial performance and efficient response strategies, Shandong Xinchao Energy Corporation successfully entered the top 100 national debt index rankings for 2023, ranking 87th, fully demonstrating the company's professional capabilities in financial management and risk control.