- PetroChina (NYSE:PTR) -1.7% pre-market after saying it forecasts FY 2017 profit rebounded off its worst-ever results in 2016 and may have tripled amid cost cutting and higher energy prices.
- PTR says 2017 net income may have jumped by as much as 16B yuan ($2.5B), implying net income of as much as 23.9B yuan to break three straight years of declines, citing rising prices of crude oil, fuels and natural gas, as well as optimizing production and operations, cost cutting and increased efficiency.
- PTR is the top pick among Chinese oil companies by Citigroup analysts, who say all-in costs of ~$50/bbl leave the company room to benefit from higher crude prices.
- But Bernstein's Neil Beveridge is not impressed with the latest results, saying “While this marks an improvement year on year, returns remain significantly below peers... We continue to worry on the impact of gas losses on PetroChina’s ability to grow earnings.”