PetroChina H1 profit up 55% on strong crude; chemical earnings shrink
Fanny Zhang
25-Aug-2022
SINGAPORE (ICIS)–State-owned energy and petrochemical firm PetroChina posted a 55% year-on-year increase in its first-half 2022 net profit, thanks to spikes in crude oil prices.
CNY million | H1 2022 | H1 2021 | change |
Revenue | 1,614,621 | 1,196,581 | 34.9% |
Operating expenses | -1,495,606 | -1,108,118 | 35.0% |
Profit from operations | 119,015 | 88,463 | 34.5% |
Profit attributable to owners | 82,391 | 53,037 | 55.3% |
KEY POINTS:
– H1 domestic chemical demand slowed down, while chemical firms experienced margin squeeze and lowered operating rates amid significant rise on feedstock cost.
– Profit from its chemical segment for the period slumped 99% to CNY88m ($13m).
– Ethylene production in January-June 2022 expanded 23.7% year on year to 3.8m tonnes.
– Oil and gas production increased 3.1% over the period to 845m barrels of oil equivalent (boe).
H2 OUTLOOK
– Global economy faces downward pressure due to factors such as high inflation, interests rates hikes and geopolitical tensions.
– China economy expected to continue rebound; growth expected to be reasonable.
– PetroChina to run ethane cracker, fertilizer, acrylonitrile butadiene styrene (ABS) and other chemical facilities at full capacity. It plans to increase proportion of high-end special materials and increase production of high value-added chemical products, to improve profitability of its chemical business.
($1 = CNY6.85)
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