PetroChina posts record interim profit, but fuel sales decline
PetroChina, China's largest gas and oil company, announced on Monday that its first-half net profit had reached a new record, an increase of 3.9% over a year earlier, due to higher gas and oil prices, which outweighed lower refining profits.
According to a filing at the Hong Kong Stock Exchange, the net income for the period was 88.61 billion Yuan ($12.44billion) and the total revenue increased by 5% to 1.554 trillion Yuan.
Sinopec, China's largest refiner, reported a 2.6% increase in its net interim profit to $5.2 billion. This was boosted by record oil and natural gas production but sluggish fuel demand and petrochemicals were a drag.
The Chinese demand for diesel transportation fuel has fallen due to a long-lasting property crisis, and the use of natural gas instead of diesel as truck fuel. Growth in gasoline consumption has also been curtailed by the growth of new energy vehicles.
PetroChina, China’s second largest refiner, reported a 3% increase in crude throughput during the first half of 2012, which was 693.3 millions barrels or 3.81million bpd. The growth was down from the first quarter's rate of 8.2%. This suggests a slower second quarter.
Diesel sales fell the most, by 5.6%. Gasoline also dropped 2.7%.
The group's sales of natural gas grew by 12.9% over the past year, to 147.2 billion cu m.
The domestic natural gas production rose by 2.9% to 2,486.8 bcf, while the overseas production increased by 2.5% to 97.4 bcf.
PetroChina's crude oil production rose by 0.1% in the past year, to 474.8 millions barrels or 2.61million barrels per day.
The domestic production grew by 0.1%, to 392.8 millions barrels. Production outside China remained unchanged at 82,000,000 barrels.
Results are published after market close.
PetroChina shares listed in Hong Kong closed 1.6% higher on Monday, and are up 33% this year. This is better than the Hang Seng Index which has gained 4.4%. (metric ton = 7 barrels when converting crude oil) ($1 = 7.1209 Chinese Yuan Renminbi) Reporting by Chen Aizhu, editing by Barbara Lewis
(source: Reuters)
