PetroChina 1H profit near flat on refining loss

AP News
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Posted: Aug 25, 2011 5:20 AM
PetroChina 1H profit near flat on refining loss

PetroChina Ltd., China's biggest oil and gas company, said Thursday that first-half profit edged up 1 percent as losses in its refining business eroded gains from higher oil and gas output.

The Beijing-based company reported profit of 66 billion yuan ($10.3 billion) for the six months ended June 30, compared with 65.3 billion yuan a year earlier.

Revenue rose 39 percent to 952.2 billion yuan ($148.8 billion), helped by higher production and increases in government-controlled fuel prices.

PetroChina reported a refining loss of 21 billion yuan ($3.3 billion) as higher costs for imported crude oil outpaced the gains in prices for its products.

The state-owned company said it would seek stable and balanced growth, while seeking to minimize risks, warning that "the uncertainty and instability of the global economic recovery may become more severe, while the global financial markets and crude prices may see greater fluctuations."

PetroChina said its output of oil and gas climbed 5.1 percent to 643.5 million barrels of oil equivalent in January-June. A 5 percent increase in crude oil output to 446 million barrels was the strongest growth in years, the company said.

PetroChina said it would continue to expand its international operations.

Like other Chinese energy and resource companies, it has actively sought access to resources overseas to help diversify its risks and ensure a steady supply of oil and gas needed to power China's fast-growing economy.