31 March 2003 10:17 [Source: ICIS news]
SINGAPORE (CNI)--PetroChina, the country's largest oil and gas producer, on Monday announced a 6.6% drop in revenues for its chemicals and marketing division - blaming the decline on decreased sales volumes.
It said revenues in the chemicals division fell to Rmb29.7bn ($3.6bn/Euro3.3bn). No earnings details were disclosed for the petrochemical division.
The company, however, posted a 3.1% gain in its consolidated net profit to Rmb46.9bn, citing stronger sales of oil refined products and natural gas.
It said the petrochemical division had achieved the cost-cutting targets that were set for it at the time of the company's listing. It had set a cost reduction target of Rmb1.2bn for the chemicals segment by the end of last year.
PetroChina promised shareholders that it would lay off 50 000 workers within five years when the company was listed on the New York Stock Exchange in 2000. It had achieved that target by cutting 58 200 workers by the end of 2001 and had targeted a further 4000 staff reduction last year.
The company's total revenues grew 1.3% to to Rmb244.4bn last year, largely driven by oil and natural gas sales.
PetroChina's petrochemical portfolio is not as developed as that of domestic rival Sinopec, although it has been making efforts to expand.
The company is currently expanding its 160 000 tonne/year cracker at the Lanzhou, Gansu province, to 240 000 tonne/year, with the additional capacity expected to come on stream around the end of Q2 this year and is considering plans to further expand the unit to 540 000 tonne/year.
PetroChina has been eager to expand its ethylene capacity in Lanzhou city as part of a state-approved plan to turn the area into a petrochemicals hub.
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