PetroChina’s first half profit up 1% from a year ago

PetroChina Co. Ltd. posted net profits of 66 billion yuan (US$10.3 billion) for the first six months of the year, up 1.03% from a year ago as higher crude oil prices and strong production offset refining losses and costly natural gas imports. PetroChina’s total first-half crude oil output rose 5% to 446 million barrels, while natural gas output rose 5.3% to 1.19 trillion cubic feet . The company aims to produce 885.8 million barrels of crude oil this year, up 3.3% from a year ago, and is targeting to produce 2.45 trillion cubic feet of natural gas, up 10.4% from last year. However, losses in PetroChina’s refining sector capped higher gains in the upstream sector, as the government held back from increasing domestic fuel prices because of inflation concerns. “It is very important for the Chinese government to give the right guidance of the reasonable refined product pricing so as to promote the healthy and sustainable development of the gas industry,” said Zhou Jiping, president of PetroChina, at a news conference in Hong Kong. The company’s refineries processed 491 million barrels of crude oil in the first half, up 11.9% from a year ago. PetroChina is aiming for an annual crude run of 979.4 million barrels, up 8.4% from last year. (August 25, 2011)