PetroChina (NYSE: PTR) may have been the
reporting caboose among international oil companies, but it
certainly wasn't bringing up the rear when it came to
quarterly earnings.
For the first half of 2009, PetroChina's profits dropped
7.2% year over year, on a top line that plunged 25%. Yet the
company actually increased second-quarter net income by more
than 25%! At the same time, it disclosed ambitious plans for
growth in refining and other areas, enabling the company to
more effectively complete with international rivals such as
ExxonMobil (NYSE: XOM),
BP (NYSE: BP), and
Chevron (NYSE: CVX).
For the first half of the year, PetroChina recorded a gain
of $7.39 billion. It blamed the decline from last year, which
was far less severe than those experienced by most other
integrated companies, on collapsed oil prices and
depressed domestic demand.
The company remains particularly successful on the natural
gas front. During the six-month period, gas output increased
by 10.6% to 1.2 trillion cubic feet. This double-digit growth
in gas production is rapidly becoming a tradition at
PetroChina.
In addition, the refining business generated a profit of
CNY 17.19 billion, improving from an operating loss of CNY
59.02 billion last year. However, PetroChina's production of
crude oil for the first half of 2009 declined to 417.7
million barrels, or 4.8% below the same period a year
ago.
PetroChina has unveiled several plans to foster its
growth, including acquiring a production sharing stake from
its parent company, China National Petroleum Corp., in a
Turkmenistan gas field. In addition, it plans to
substantially increase its refining capacity by 2017, and
it's seeking downstream acquisition opportunities
internationally.
Chinese petroleum companies' results have been spotty
during the most recent six-month reporting period. Refiner
Sinopec (NYSE: SNP) unleashed record profits,
while
offshore operator
CNOOC 's (NYSE: CEO) results declined 55%.
Nevertheless, if the government raises petroleum product
prices (as expected), PetroChina could be looking at a very
positive second half.
PetroChina has a
four-star
ratingout of a possible five among
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This article was originally published as
PetroChina Pumps Up Growth Planson
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