by Staff Writers
Shanghai (AFP) Aug 25, 2017
China's biggest oil producer PetroChina said a pick-up in oil prices helped net profit skyrocket more than 2,000 percent in the first half, and that it was giving the entire windfall to shareholders via a cash dividend.
Net profit from January to June hit 12.67 billion yuan ($1.9 billion), rebounding from just 531 million yuan in the same period last year, the firm said in a statement to the Hong Kong stock exchange where it is listed.
That marks a rise of 2,290 percent over the year-earlier period, which was the company's lowest half-year earnings figure since it first went public in 2000, blamed largely on weak international crude oil prices at the time.
"Supply and demand in the global oil market were progressively moving towards a state of balance," PetroChina said.
"The international oil prices fluctuated significantly with the price increasing substantially as compared with the same period of last year."
Prices have since firmed up but remain half of what they were before a 2014 plunge fuelled by a supply glut, overproduction and a weak global economy.
PetroChina said an amount equivalent to the first-half profit would be given to shareholders "in overall consideration of the good fundamentals of development, financial conditions and cash flow, (and) to improve returns for the shareholders".
The move follows similar recent payouts by state-owned enterprises such as China Mobile, seen by analysts as a way to lure investors and possibly shift some cash back to state coffers at a time when the government is seeking to stop capital flight.
PetroChina is 86 percent owned by its unlisted and government-controlled parent, China National Petroleum Corp (CNPC).
"The generous dividend payout was a gesture to please shareholders in a subdued oil market," Tian Miao, an analyst at Sun Hung Kai Financial Ltd, told Bloomberg News.
"CNPC will pocket a nice payment as well. PetroChina's growth will continue into the second half of the year as it finds a way to keep cutting operation costs."
Moderate gains in the world economy and "good momentum for growth" in China's economy have helped oil PetroChina's profit recovery, the company's earnings statement said.
China registered stronger-than-expected economic growth in the first half, expanding 6.9 percent in both the first and second quarters.
But the oil giant said uncertainty in crude prices in the second half of this year and a general slowing trend in the Chinese economy still posed a threat to the full-year performance.
Investors cheered the news Friday morning, with PetroChina shares rising more than four percent in Hong Kong and more than one percent in Shanghai, where it is also listed.
Fellow Chinese oil giant Sinopec is due to release its half-year results the following Monday.
Paris (AFP) Aug 23, 2017
US oil giant ExxonMobil knowingly misled the public for decades about the danger climate change poses to a warming world and the company's long-term viability, according to a peer-reviewed study released Wednesday. An analysis of nearly 200 documents spanning decades found that four-fifths of scientific studies and internal memos acknowledged global warming is real and caused by humans. ... read more
All About Oil and Gas News at OilGasDaily.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|