PetroChina expects 50-60 per cent jump in first-half profit on higher oil prices triggered by Russia-Ukraine war
- China’s biggest oil company estimates net profit rose between 26.5 billion yuan (US$3.9 billion) and 32 billion yuan in the January to June period
- Brent crude has traded between US$78 and US$123 a barrel this year, higher than last year’s average of US$71
The state-backed energy giant, with upstream and downstream operations, estimated that net profit rose between 26.5 billion yuan (US$3.9 billion) and 32 billion yuan for the six months to June 30, according to a filing to the Shanghai exchange on Friday. This means it could report an interim profit of between 79.5 billion yuan and 85 billion yuan in August, up from 53 billion yuan in the same period last year.
“The main reason for the profit growth is our increased exploration and production effort, cost control and efficiency measures, besides higher international oil price and growth in oil and gas sales volume,” PetroChina said in the filing.
Brent crude has traded between US$78 and US$123 so far this year, with prices rising sharply after Russia invaded Ukraine in late February. The oil benchmark averaged US$71 a barrel last year, 70 per cent higher than in 2020.
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In March, PetroChina unveiled targets to raise oil output by 1.2 per cent and gas production by 4.6 per cent, while aiming to lift refining throughput by 3.6 per cent this year.
