En­ergy gi­ant’s net profit soared 16 times higher than ex­pected dur­ing H1

China Daily (Hong Kong) - - BUSINESS - By ZHENG XIN zhengxin@chi­nadaily.com.cn

An­a­lysts be­lieve the out­stand­ing per­for­mance of China Na­tional Petroleum Cor­po­ra­tion, the na­tion’s largest oil pro­ducer and sup­plier, is ex­pected to con­tinue in the next six months, af­ter its net profit soared 16 times higher than ex­pected dur­ing the first half of 2017.

Ac­cord­ing to an early an­nounce­ment on earn­ings re­leased by the com­pany on Wed­nes­day, net profit in the first six months of this year is ex­pected to reach nine bil­lion yuan ($1.33 bil­lion) to 11 bil­lion yuan, up 1,600 per­cent to 1,986 per­cent, com­pared with 528 mil­lion yuan dur­ing the same pe­riod last year.

The com­pany’s shares fell by 0.49 per­cent on Thurs­day on the Shang­hai Stock Ex­change.

“The com­pany may ex­tend profit into the sec­ond half of this year in its up­stream unit,” said Wang Lu, an Asi­aPa­cific oil and gas an­a­lyst at Bloomberg In­tel­li­gence, adding that com­pe­ti­tion has also be­come more fierce in re­fin­ing and mar­ket­ing, erod­ing its mar­gins in those busi­nesses.

“CNPC’s de­cline in oil out­put should ease in the sec­ond half of this year and its gaspro­duc­tion growth may ac­cel­er­ate.”

Wang said the fore­casted dras­tic profit re­bound is mostly a re­sult of last year’s low base, 528 mil­lion yuan for the first six months of 2016, its worst first-half profit since it

CNPC’s de­cline in oil out­put should ease in the sec­ond half of this year ...” Wang Lu, an Asia-Pa­cific oil and gas an­a­lyst at Bloomberg In­tel­li­gence

was pub­licly listed in 2000, ac­cord­ing to a stock ex­change fil­ing on Wed­nes­day, cit­ing Chi­nese ac­count­ing stan­dards.

Li Li, the en­ergy re­search di­rec­tor at ICIS China, a con­sult­ing com­pany that pro­vides analysis of the en­ergy mar­ket, said the com­pany, which earns most of its rev­enue from crude oil sales, ben­e­fited largely from a re­bound

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.