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PetroChina’s Net Profit Up 5.8%, Sinopec’s Down 35.04% In Q1

|Includes: PetroChina Co., Ltd. (PCCYF), SHI

Source: Petrochina, Sinopec, Sinopec, ChinaScope Financial (Data)

+ According to PetroChina, its operating revenue was CNY 525.65 billion, up 17.86% YoY and net profit was CNY 39.15 billion, up 5.8% YoY in Q1. The growth is mainly due to exploration and production, which generated operating profits of CNY 60.38 billion, up 31.6% YoY.

+ Meanwhile, Sinopec's first-quarter operating revenue was CNY 398.31 billion, up 11.35% YoY, while net profit was only CNY 13.41 billion, down 35.04% YoY. Exploration and mining generated operating income of CNY 19.55 billion, up 48.75% YoY, while refining losses amounted to CNY 9.17 billion.

+ The difference in the two companies Q1 performance is mainly due to their different reliance on crude oil imports. Sinopec imports 80% of its crude oil, compared to 30% for PetroChina, the former being more vulnerable to international oil price fluctuations.

Revenue growth of both companies decreased in 2012Q1, resulting in a net profit attributed to share holders growth of 5.81% for PetroChina and a negative 37.42% for CPCC.

Margin ratios for PetroChina have rebounded, while those of CPCC remain weak.