PetroChina reports posts 21% drop in net profit for second quarter

The state-owned Chinese company, PetroChina, posted a 21% decline in second-quarter earnings, hit by refining and chemicals losses. The company’s net profit for the April-June period fell to CNY22.83 billion (US$3.6 billion), from CNY29 billion (US$4.5 billion) a year-ago.
The company’s refining and chemicals division posted a loss of CNY28.9 billion (US$4.5 billion) in the first half. The company said “prolonged weakness in demand and the government’s macroeconomic regulation and control over (the) price of domestic refined products” was to blame for the loss.
During the second quarter, the refining and chemicals business posted a loss of CNY18.5 billion (US$2.9 billion), compared with a loss of CNY10.4 billion (US$1.6 billion) in the first quarter and CNY60 billion (US$9.4 billion) for the entire year of 2011.
Chinese refiners cannot fully pass on the cost of higher crude oil prices to consumers, as the central government controls oil product prices to curb inflation. (August 1, 2012)