Thu, Oct. 29, 12:57 PM
- The plunge in crude oil prices wreaked havoc on Q3 profits at PetroChina (PTR -2.3%), the country’s biggest oil and gas producer, and Sinopec (SNP -1.7%), its largest oil refiner.
- PTR reported its worst quarterly profit on record, with Q3 net income plunging 81% Y/Y to 5.2B yuan ($818M), less than half of analyst estimates, as sales dropped 29% to 427B yuan.
- "It’s a pretty weak performance across all segments,” says Bernstein's Neil Beveridge. “PetroChina is struggling in the low crude environment and needs to find a way to stop the bleeding.”
- SNP's Q3 profit plunged 92% Y/Y to 1.64B yuan ($258M), also far short of expectations, as lower oil prices and production dwarfed an increase in refining revenue.
- "We thought Sinopec would have better leverage in refining to counter the crude-price drop,” says BOC International Holdings' Lawrence Lau. “Inventory losses could be a reason for the sharp profit decline, and it may help Sinopec in the fourth quarter if the crude price rebounds.”
- Earlier: Cnooc's Q3 oil output surges even as revenue falls (Oct. 28)
Wed, Aug. 26, 8:40 AM
- Sinopec (NYSE:SNP) says its H1 net profit fell 22% Y/Y to 25.39B yuan ($3.96B) from 32.5B yuan a year earlier, as sharply lower crude oil prices hurt upstream earnings.
- SNP's total H1 oil and gas production fell 1.8% Y/Y to 233M boe, driven lower by falling domestic crude production; H1 refinery throughput rose 2.7% to 118.9M metric tons.
- "Upstream performance remains an area of concern with declining domestic oil and gas production,” says Bernstein's Neil Beveridge, but he adds that the company should benefit from improved downstream performance due to lower feedstock prices for the rest of the year.
Wed, Apr. 29, 12:12 PM
Thu, Mar. 26, 8:49 AM
- PetroChina (NYSE:PTR) says its net profit fell 17.3% last year to its lowest annual profit in five years, as falling crude oil prices squeezed earnings.
- PTR says its net income dropped to 107.2B yuan ($17.2B) from 129.6B yuan a year earlier, while revenue rose 1.1% to 2.28T yuan from 2.25T a year earlier.
- Capital spending for 2015 will be reduced by 8.8% at 266B, adding to last year's 8.4% reduction; the move follows similar cuts by Chinese state-owned rivals Sinopec (NYSE:SNP) and Cnooc (NYSE:CEO).
- Oil and gas production rose 3.6% to 1.45B boe in 2014, and realized crude oil price fell 13% to 3,939 yuan/ton.
Mon, Mar. 23, 7:58 AM
- Sinopec (NYSE:SNP) says it is cutting its 2015 capital spending 12% to 135.9B yuan ($22B) from 2014's 154.6B yuan, after reporting a Q4 net loss of 5.4B yuan vs. a 19.3B yuan profit in Q3.
- China second largest oil group warns that it expects a “significant decrease” in Q1, which will be “in the vicinity of the breakeven point" because of low prices and inventory costs.
- For FY 2014, SNP’s net income dropped to 46.5B yuan, down nearly 30% Y/Y and falling well short of analysts’ consensus estimate of 53.5B yuan; revenues slipped 2% Y/Y to 2.8T yuan.
- SNP says crude production for 2014 climbed 8.5% to 361M barrels as realized prices fell 5.8%, and expects output may drop 4% to 348M barrels in 2015; however, natural gas production may grow 24% to 886B cf.
Apr. 28, 2014, 11:35 AM
- Sinopec (SNP -0.4%) reports a larger than estimated 15% drop in Q1 profit, hurt by higher finance expenses due to the weaker Chinese yuan.
- SNP's sales declined 8% to 641B yuan and operating profit at its E&P business dropped 19% to 13.2B in the quarter; crude oil output rose 9% to 89.4M metric tons, while its realized oil price declined 4%, and gas output gained 9% to 177.4B cf.
- PetroChina (PTR), China’s biggest oil and gas producer, posted a 5% decline in Q1 profit last week; both companies were hurt by the weaker Chinese yuan, which has a bigger impact on SNP because the China's biggest refiner and crude oil importer buys ~70% of the crude it needs in U.S. dollars.
Mar. 28, 2014, 8:21 AM
- Cnooc (CEO) posted an 11.4% drop in its 2013 net profit, well below analyst forecasts, to 56.5B yuan ($9.3B) vs. 63.7B yuan the previous year, as it struggled to deliver production growth and control costs amid weakening crude prices.
- China's largest offshore oil and gas producer nevertheless says it expects to boost capital spending by 14%-30% this year, a sharp contrast to plans from rivals PetroChina (PTR) and Sinopec (SNP), which said they will cut capital expenditure this year by 7% and 4.2% respectively.
- SNP had reported 2013 net profit rose 3.4%, while PTR had reported a 12% rise.
- Production rose 20.2% Y/Y to 411.7M boe in 2013, thanks to contributions from newly acquired Nexen; excluding the contribution, Cnooc produced 350.9M boe, missing for the third year in a row its compound annual growth target of 6%-10% set for the 2011-15 period.
Mar. 24, 2014, 7:54 AM
- Sinopec (SNP) reports a 3.4% increase in its 2013 net earnings to 66.1B yuan ($10.6B) vs. analyst consensus estimate of 69B yuan and 63.9B yuan a year earlier, and says it plans to reduce capital spending 4.2% to 161.6B yuan this year.
- SNP says it expects to complete the sale of up to 30% of its marketing business in Q3 of this year, and plans to set up a holding company for the marketing assets by the end of March, Chairman Fu Chengyu says.
- Says oil and natural gas production rose 3.5% to 442.8M boe last year, and forecasts production of 363.8M barrels of oil and 706.2B cf of natural gas in 2014.
- Says production at the Fuling field, SNP's first commercial shale gas field, is running ahead of schedule; SNP expects it to produce 1.8 cubic meters of shale gas this year, 9x China’s total output of shale gas last year.
- PetroChina (PTR), China’s largest oil producer, also is cutting capex; it said last week its spending target for 2014 was 7.1% lower Y/Y.
Oct. 29, 2013, 9:39 AM
- Sinopec (SNP +3.5%) reports its Q3 net earnings rose 20% Y/Y to 22B yuan ($3.6B), or 0.18 yuan/share, due to an improvement in refining margins after China reformed fuel pricing in March.
- SNP processed 174.2M metric tons of crude oil in the January-September period, up 6.4% from a year earlier; the average selling price of its oil fell 5.5% to $95.11/bbl in the period.
- Operating profit from the refining business was 6.7B yuan in the first nine months, compared with a loss a year earlier; crude and natural gas production rose 4% in the period to 331M barrels.
Apr. 26, 2013, 6:57 AM
Apr. 25, 2013, 10:22 AMSinopec's (SNP -0.4%) Q1 net profit jumped 25% Y/Y to 16.7B yuan ($2.7B) from 13.4B yuan, due to an improved refining business. SNP processed 58.7M metric tons of crude oil in the quarter, up 5.9% from 55.4M tons. The average selling price of its oil fell to $98.83/bbl from $106.10 a year earlier. Agrees to sell a 30% stake in an oil and gas block in Myanmar to Taiwan's CPC Corp. | Apr. 25, 2013, 10:22 AM | Comment!
Mar. 24, 2013, 3:43 AM
Aug. 27, 2012, 5:11 AMSinopec (SNP): H1 net profit -40% to 24.5B yuan ($3.8B), revenue +9.3% to 1.3T yuan. Losses at refining division widen by about 50% to 18.5B yuan. Chemicals losses 1.2B yuan. Overall profit falls due to controls preventing Sinopec from passing on oil price rises to consumers. Crude oil output +4.3% to 163.1M barrels. Natural gas +14% to 8.2B cubic meters. (PR) | Aug. 27, 2012, 5:11 AM | Comment!
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