PetroChina profits fall on weaker oil and economic slowdown

Cumulative losses for the nation’s fuel-makers total 32 billion yuan this year till September, amid a downturn in the nation’s property sector and a shift towards electric transportation

PETROCHINA’S profit fell in the third quarter amid lower global oil prices and continued weakness in the domestic economy.

The firm reported a net profit of about 43.9 billion yuan (S$8.1 billion), higher than the 46.4 billion yuan in the same period last year, it said in an exchange filing on Tuesday (Oct 29).

China’s biggest oil-and-gas supplier lifted its output to 436.8 million barrels of oil equivalent in the quarter, from 421.6 million barrels last year.

The state-owned giant has answered Beijing’s call to increase domestic production on concerns of energy security, even as oil prices have suffered a recent slide. Brent crude averaged about US$79 a barrel in the third quarter, down from US$86 last year.

At the same time, a slowdown in the nation’s property sector and a shift towards electric transportation have eroded profits at its refining business.

Cumulative losses for the nation’s fuel-makers totalled 32 billion yuan this year ended September, indicated government data. Profit from PetroChina’s refining, chemicals and new materials unit shrank to 1.7 billion yuan for the quarter, from 9.5 billion yuan last year.

Natural gas has become a bright spot, with demand seen growing far further into the future than oil. Profits for the petrol and pipeline unit grew by 58 per cent over the previous year to 8.5 billion yuan for the quarter. BLOOMBERG