Oil & Gas – Sector note – Solid outlook expected in 2Q22F
The reopening of all industries led oil & gas consumption to grow in 1Q22. Based on our collection, the 1Q22 aggregate earnings growth edged up 35.1% yoy in 1Q22 vs 31.7% yoy growth in 4Q21. Otherwise, the revenue growth rate in 1Q22 was still brisk at around 66.7% yoy thanks to the higher oil prices. Average selling prices were the biggest impact on revenue growth engines, in our view. The high global oil prices will lead earnings of midstream and downstream such as GAS, and BSR to grow strongly in 2Q22F.