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