PetroChina profits rise on strong crude and gas sales

A gas station attendant pumps fuel into a customer's car at PetroChina's petrol station in Beijing, China. (Reuters/File)
Updated 29 August 2019

PetroChina profits rise on strong crude and gas sales

  • PetroChina earlier this month started to drill its first shale oil well in China’s southwestern province of Sichuan

BEIJING: PetroChina, Asia’s largest oil and gas producer, said on Thursday first half 2019 net profit rose 3.6 percent from a year earlier, driven up by increasing crude oil and natural gas sales.

For the first six months of 2019, the company earned 28.42 billion yuan ($4.01 billion), PetroChina said in a filing to the Hong Kong stock exchange. Total revenue for the state-backed company was 1.12 trillion yuan, up 6.8 percent from the same period in 2018.

Profit for the April to June quarter was 18.17 billion yuan, the highest since the third quarter last year, according to calculations by Reuters. That compares with 16.94 billion yuan in the same period a year earlier and 10.25 billion yuan in the first quarter of this year.

Over the first six months of 2019, PetroChina produced a total of 451.9 million barrels, or 2.5 million barrels per day, up 3.2 percent from the same period in 2018. 

It also reported a 3.1 percent increase in crude oil throughput at its refineries to 597.4 million barrels, or 3.3 million barrels per day.

With Beijing’s push to boost domestic energy production, PetroChina invested 12.27 billion yuan in upstream exploration in the first half of 2019, 14 percent more compared to the same period last year.

Chinese energy companies have said they plan to raise spending on domestic drilling this year to the highest since 2016 to safeguard the country’s energy security.

PetroChina earlier this month started to drill its first shale oil well in China’s southwestern province of Sichuan and vowed to double natural gas output in the region to 50 billion cubic meters by 2025.

“In the second half of the year, the company will vigorously implement centralized exploration in key regions ... and focus on shale gas production to increase production,” it said.

The company also addressed the risk of an economic downturn, excessive domestic oil refining capacity and the restructuring of oil and gas pipelines system.

“Looking forward, we will focus more on the Belt and Road Initiative ... and will increase the natural gas percentage in our overseas portfolio to optimize the asset structure,” PetroChina Executive Director and President Hou Qijun said.


Egypt expects economic growth between 2.8 and 4% in 2021

Updated 57 min 40 sec ago

Egypt expects economic growth between 2.8 and 4% in 2021

  • Unemployment indicators also reflected the economy's development

CAIRO: Egyptian Finance Minister Mohamed Maait said the country was reaching positive growth rates, calling it a great achievement in light of the global conditions brought on by the coronavirus pandemic.

Maait said the estimated rate of economic growth in the fiscal year 2021-2022 would reach between 2.8 and 4 percent.

He said the percentage varied according to how each person perceived it sectorally, and that industries such as tourism and aviation were significantly affected by the spread of the disease.

“We have a priority to make room for the private sector’s participation in development projects,” the minister added.

He explained that there would be strengthened cooperation with the Transport Ministry in implementing its projects in partnership with the private sector.

Egypt had been hoping for growth between 6 and 6.5 percent before the coronavirus crisis broke out.

The country topped the emerging market economies in containing the rate of inflation during the current year, according to data from the Egyptian cabinet, despite the global repercussions of the health emergency.

The International Monetary Fund (IMF) said that Egypt achieved the largest annual decline in the inflation rate in emerging markets in 2020, compared to 2019, with a decline of 8.2 percentage points.

Among the effects of the economic reform plan were inflation rates falling to 5.7 percent during 2019-2020, compared to 13.9 percent in 2018-2019.

Unemployment indicators also reflected the economy's development. 

Recent data from the Egyptian Central Agency for Public Mobilization and Statistics showed the unemployment rate declining to 7.3 percent in the third quarter of this year, compared to 7.8 percent a year ago.

Egypt's monetary reserves rose to $39.22 billion by the end of last October, according to the country's central bank.

The IMF said the performance of the Egyptian economy exceeded expectations.