PetroChina's profit for the first quarter increased by 2.3% due to natural gas sales

PetroChina, China's largest energy producer, posted a 2.3% increase in its first-quarter profits on Tuesday. The company cited higher natural gas production, even though poor margins affected the refined products business.

A filing at the Hong Kong Stock Exchange revealed that the profit attributable by the owners of the company increased to 46.81 billion Yuan ($6.44billion) from 45.77billion a year ago.

Revenue dropped 7.3% to 753.1 billion Yuan.

Comparatively, local competitors reported lower profits, due to lower oil prices. Sinopec Corp.'s profit dropped 27.6% from a year ago, due to a decline in fuel sales as well as thin margins within its refining division. CNOOC Ltd blamed lower oil prices for its 7.9% drop in profit, but increased output helped to stem the decline.

PetroChina, China's second largest refiner, reported that its crude oil production increased by 0.2% in the last quarter to 240.2 millions barrels. Gas output grew 1.2% to 1361 billion cubic foot.

The natural gas division saw sales rise 3.7%, to 86.44 bcm. This led to an operating profit increase of 9.7% to 13.51 bcm.

Profits in the refining sector fell by 2,42 billion yuan due to lower processing volumes and margins.

PetroChina processed 337.3 millions barrels of crude oil between January and March. This is 3.75 million barrels a day less than a year ago.

Total gasoline, diesel and kerosene sales fell by 6.3%, to 36.78 millions metric tons. Gasoline sales fell by 8.2%. Diesel sales were down 5.1%, and kerosene was down 4.3%.

PetroChina said that the profit for its chemicals division fell by 308 millions yuan due to lower margins.

PetroChina shares listed in Hong Kong closed down by 1% Monday following the earnings results. The Hang Seng Index has risen 9.71%, but the PetroChina shares have declined 11.41%. (Reporting and editing by David Evans; Colleen Howe)

(source: Reuters)