PetroChina says profit may triple amid cost cuts

Muscat Daily - - BUSINESS -

Shang­hai, China - PetroChina Co, the coun­try’s big­gest oil and gas pro­ducer, fore­cast that full-year profit re­bounded off a record low and may have tripled amid cost cut­ting and higher en­ergy prices.

Net in­come for 2017 may have jumped by as much as 16bn yuan (US$2.5bn), the state-run oil gi­ant said in a fil­ing to the Hong Kong stock ex­change, cit­ing Chi­nese ac­count­ing stan­dards. That im­plies net in­come of as much as 23.9bn yuan. Profit at the Bei­jing-based com­pany will snap three years of de­clines af­ter post­ing its worst-ever profit in 2016 as fall­ing crude prices crushed prof­itabil­ity.

PetroChina cred­ited the jump in net profit to ris­ing prices of crude oil, fu­els and nat­u­ral gas, as well as op­ti­mis­ing pro­duc­tion and op­er­a­tions, cost cut­ting and in­creased ef­fi­ciency. It also high­lighted that its 2016 profit in­cluded a 24.5bn yuan one-time gain on the sale of a stake in its Trans-Asia Gas Pipe­line Co, which links Cen­tral Asian coun­tries to China’s western bor­der.

PetroChina plays a key role in Pres­i­dent Xi Jin­ping’s drive to use more nat­u­ral gas. While it’s the coun­try’s big­gest pro­ducer, it’s also the largest im­porter, a trade that weighed on earn­ings in the third quar­ter and may put a brake on fur­ther gains as it sells the over­seas gas at a loss.

Newspapers in English

Newspapers from Oman

© PressReader. All rights reserved.