Crude price re­cov­ery lifts Petrochina

The Myanmar Times - Weekend - - International Business -

THE main­land’s largest oil and gas pro­ducer China Na­tional Pe­tro­leum Corp, or Petrochina, re­ported a 290 per­cent rise in third-quar­ter net profit as the com­pany reaped the re­wards of a strong re­bound in crude prices and delever­ag­ing.

With the other two main­land oil ma­jors – CNOOC and Sinopec – also re­port­ing higher third-quar­ter num­bers, in­dus­try an­a­lysts ex­pected the strong re­bound to con­tinue in the fourth quar­ter of the year also.

Petrochina’s net profit rose 290 per­cent from a year ago to 4.69 bil­lion yuan ($707 mil­lion) as the com­pany cut debt and interest ex­penses.

Rev­enue for the pe­riod rose 17 per­cent from a year ago to 481.8 bil­lion yuan, the Bei­jing-head­quar­tered com­pany said in a fil­ing to the Hong Kong stock ex­change.

With the win­ter heat­ing sea­son ap­proach­ing in the north­ern parts of China, an­a­lysts be­lieve Petrochina’s earn­ings could con­tinue ris­ing in the fourth quar­ter with whole­sale nat­u­ral gas de­mand set to go up from mid­novem­ber.

Li Li, re­search di­rec­tor for the en­ergy sec­tor at ICIS China, a con­sul­tancy fo­cused on the en­ergy in­dus­try, said Chi­nese oil gi­ants have ben­e­fited mas­sively from the re­bound in in­ter­na­tional oil prices dur­ing the first nine months of this year.

The profit re­bound, based on last year’s low base, which was also the com­pany’s worst first-half profit since its list­ing in 2000, will con­tinue and the oil and gas in­dus­try will also grad­u­ally im­prove with bet­ter risk re­sis­tance ca­pac­ity, she said.

“Petrochina’s rev­enue and prof­itabil­ity are ex­pected to con­tinue im­prov­ing in the fourth quar­ter, thanks to higher crude prices and gen­er­ally bet­ter cost con­trols in the oil and gas sec­tor,” said Li.

Crude pro­duc­tion fell to 660 mil­lion bar­rels in the Jan­uary to Septem­ber pe­riod this year, down 5 per­cent year-on-year.

China Pe­tro­leum & Chem­i­cal Corp, the world’s big­gest re­finer, also known as Sinopec, also dis­closed its third-quar­ter re­port late Mon­day, say­ing its profit ad­vanced by 13 per­cent

Petrochina prof­its have rise three­fold, backed by ris­ing oil prices. Photo: China Daily

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