PetroChina's H1 net profit increases by 22% as fuel sales and oil prices spike.
PetroChina, China's largest gas and oil company, reported a 22% increase in its?first-half?net profit on Sunday, thanks to higher oil prices, and stronger fuel sales.
A filing at the Hong Kong Stock Exchange showed that net profit attributable shareholders was 103.94 billion Yuan ($14.65?billion), up from 84?billion Yuan a year ago, and revenue rose?5.3%, to 1.5 trillion Yuan.
PetroChina, China's largest refiner, processed 693 millions barrels of crude during the first six months, an increase of 3% compared to a year ago and equal to 3.83million barrels per day.
Total gasoline, diesel and kerosene sales rose 2.1% to reach 81.38 millions metric tons. Sales of gasoline rose by 1.4% and diesel sales increased 0.8%. Aviation fuel sales grew 8.9%, to 10.12 millions tons.
The company stated that "domestic demand for refined oil products has continued to grow, primarily driven by the aviation recovery and seasonal travel."
Natural gas sales increased 6.8% to 157.19 bcm, while domestic sales grew 5.4% at 114.88 Bcm.
Crude oil production increased 0.8% on an annual basis to 478.4 millions barrels or?2.64million barrels per day.
The domestic?natural gas production increased 4.3%, to 2,382.7 billion cubic feet. However, overseas gas production fell 1.2% to 186.2 bcf.
The production of chemicals rose 4.5% to 18.06 million tonnes, and the output of new materials increased 32.1%, reaching 1.37 million tonnes.
PetroChina has been able to capitalize on the regional market by increasing sales of chemical products. The volume of overseas sales has increased 8.3% in a year.
PetroChina believes that global economic growth will remain complex in the second half of this year, and international crude oil prices will fluctuate significantly because of geopolitical risks and changing supply-demand dynamics.
The company stated that domestic natural gas demand will continue to grow at a steady pace, but the demand for refined fuels is likely to be under structural pressure due new energy alternatives, despite seasonal transportation support. Overcapacity is likely to put pressure on the margins of refiners, causing them to shift their focus towards higher-value chemicals and new-material products.
The company's full-year crude and natural gas production target was maintained at 941.3 millions barrels and respectively?5,470.5 trillion cubic feet. The company also maintained its capital expenditure budget of?279.4 bn yuan.
PetroChina shares listed in Hong Kong closed at HK$10.12 on Friday, down 1.2%. They have risen by 28.5% this year compared to a Hang Seng Index gain of 3.4%.
(source: Reuters)
