PetroChina’s Q1 net profit falls 8% on weak demand, poor margins

26 April 2013 05:02  [Source: ICIS news]

SINGAPORE (ICIS)--PetroChina said on late Thursday that its net profit for the first quarter of 2013 declined by 8% year on year to yuan (CNY) 36bn ($6bn), because of weak demand and poor margins from oil products.

Its total income in the first three months of this year increased by 2.8% to CNY540.3bn, but operating profit decreased by 3.2% to CNY53.1bn, the company said.

PetroChina posted a CNY57bn profit in its upstream exploration and production business, down by 5.6% from the same period last year. Its production of oil and gas in the first quarter increased by 14.6% to 35.7m barrels of oil equivalent (boe).

PetroChina also reduced the CNY8.8bn loss made in its refining business one year earlier to CNY1.6bn in January-March 2013, as feedstock cost declined on the back of softening crude prices.

However, the company made a first-quarter loss of CNY3.2bn in its chemical business, compared with the CNY413m loss one year ago, because of continued weakness in the chemical markets.

Hampered by government regulations on gas prices, PetroChina said first-quarter operating profit for its natural gas and pipeline segment fell by 45% to CNY1.1bn, while its natural gas import business made a CNY14.5bn loss.

Profit for its marketing division declined by 65% to CNY2.1bn, because of squeezed margins from oil products including gasoline, diesel and kerosene, the state-owned company said.

Meanwhile, the company produced 1.1m tonnes of ethylene in the quarter ended March, a 16.3% increase from a year ago.

($1 = CNY6.17)

By: Fanny Zhang
+65 6780 4359

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