PetroChina net profits in Jan-Sept decrease 16% to CNY87bn

30 October 2012 15:37  [Source: ICIS news]

SINGAPORE (ICIS)--PetroChina announced on Tuesday that its net profit in the first three quarters of 2012 decreased by 16% year on year to yuan (CNY) 87bn ($13.9bn, €10.8bn) on continuous refining losses and prolonged weakness in petrochemical markets.

The Chinese petrochemical major said that losses for its refining and chemicals division were broadly flat over the period, recording an operating loss of CNY37.4bn, compared with CNY38.4bn reported in the same period during 2011.

The company lost CNY30.0bn from refining business and CNY7.38bn from chemicals operations during the nine-month period, attributing the shortfall to “prolonged weakness of the domestic petrochemicals market and the macroeconomic regulation and control over the prices of refined products.”

Total operating profit for Petrochina fell 8.7% to CNY130.0bn for the year to the end of September, despite an increase in the company’s oil exploration and production profits to CNY163.3bn from CNY160.8bn in the nine months ended 30 September 2011.

Group turnover in the January-September period increased by 7.8% year on year to CNY1,598.3bn, the company said.

In the first three quarters, PetroChina processed a total of 743.5m barrels of crude and produced 67.1m tonnes of oil products, up by 2.5% and 4.4% year on year, respectively. 

The company’s sales of oil products inched up 5.9% on year to 113.5m tonnes in the first three quarters. 

Its oil and gas production increased 3.9% year on year to 996.9m barrels of oil equivalent in the nine-month period of 2012.

China’s growth is set to continue to expand into the fourth quarter of 2012, according to PetroChina, but is likely to be slower than has been the norm in recent years, because of Chinese government policy.

“As a series of measures are being taken to maintain steady growth, the economy in China is expected to develop at a more stable pace, and the favourable policies for the petroleum industry will continue to be improved,” the company said.

($1 = CNY6.24, €1 = CNY8.06)

Additional reporting by Tom Brown

By: Fanny Zhang
+65 6780 4359

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