Petrochina 0857

[winston]

not vested

DJ MARKET TALK: UBS Cuts PetroChina Target To HK$12.40 Vs HK$13.10

1351 [Dow Jones] STOCK CALL: UBS cuts PetroChina's (0857.HK) target to HK$12.40 from HK$13.10, after revising down its FY11-FY13 EPS forecast by 5%-6% to reflect higher resource tax rate.

Still, it keeps a Buy call, as moderating oil prices, slowing inflation and the CNY's strength are expected to support its operations in the coming 12-18 months.

"In our view, these factors will reduce the burden of loss on PetroChina's domestic oil refining and natural gas import businesses." The stock is up 0.8% at HK$9.11.

Source: Dow Jones Newswire

[winston]

not vested

DJ PetroChina: Net Refining Loss This Year Estimated At CNY50 Bln

BEIJING (Dow Jones)--PetroChina Co. (PTR) expects a net refining loss of CNY50 billion this year, President Zhou Jiping said Thursday.

The company has been squeezed by poor refining margins as it is unable to pass on the cost of higher crude-oil prices to consumers, due to state caps on refined product prices.

The Chinese government's recent national rollout of a new resource tax could lead to a tax bill as high as CNY29 billion a year, up from CNY4 billion now.

However, the government is considering lowering other tax payments such as the special oil income levy, PetroChina Chairman Jiang Jiemin said.

China is still in talks with Russia over natural gas supplies. Price is the main issue, as Russia is unwilling to sell at lower than its prices for Europe, while China doesn't want to buy it higher than what it pays for supplies from Central Asia, Jiang said.

The total annual capacity of the Russia-China natural gas pipeline is 68 million cubic meters, he said.


Source: Dow Jones Newswires

[winston]

DJ MARKET TALK: Gas Price Reform Key To PetroChina - Daiwa

0828 [Dow Jones] STOCK CALL: Daiwa ups PetroChina (0857.HK) to Outperform from Hold, and also raises its target price to HK$12.10 from HK$10.20;

It says government policy changes in the past six months have been incrementally positive for the company's domestic business, and although details have not been finalised, it believes gas price reform is largely positive for the company.

The house notes "the key trigger to a meaningful revaluation" of PetroChina is gas price reform, which it believes should occur in the next 12 months;

"We believe the government is pushing gas price reform in order to incentivise drilling for high-cost unconventional gas." PetroChina rose 2.0% to HK$11.06 Friday.


Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: Citi Cuts PetroChina To Neutral; Weak Profit Outlook

1129 [Dow Jones] STOCK CALL: Citigroup downgrades PetroChina (0857.HK) to Neutral from Buy, and cuts its target price to HK$10.70 vs HK$12.40;

It says PetroChina has outperformed the H-share index by 10% year-to-date and Sinopec (0386.HK) by 21% year-to-date on the back of hopes of natural gas pricing reform and a strong 1Q12 result.

But, with losses on gas imports mounting and gas price reform likely put off until next year, "we see the FY12 earnings outlook deteriorating quickly," even assuming the government moves ahead with a hike to domestic well-head gas prices under the existing gas pricing mechanism.

Citi expects PetroChina's 2Q12 EPS, to be reported in late August, to fall 30% on-quarter on lower oil prices, higher refining losses, higher natural gas import losses, and chemical division losses.

PetroChina is down 2.1% at HK$9.85.


Source: Dow Jones Newswire

[winston]

DJ MARKET TALK: PetroChina Offers Value Opportunity - Barclays

1051 [Dow Jones] Barclays says with Brent having reached US$90/bbl in late June and inflation in China easing, "we would have thought that the Chinese government would have used this window of opportunity to finally reform fuel pricing in the country."

But with no sign of the State Council announcing partial reforms, the near-term outlook for domestic refiners looks challenging, and Sinopec (0386.HK) is the most exposed to refining;

While it believes that corporate re-structuring around upstream asset injection from Sinopec Group, is likely to see a gradual improvement in returns and value uplift, "this looks likely to be a 2013 event."

Barclays says PetroChina (0857.HK) offers value opportunity away from refining, as it has more upstream bias than refining.

"The company has absolute exposure to China, indirect government support from CNPC and a portfolio of energy assets able to capture energy liberalisation in the long term."

It says any PetroChina weakness post results would be good entry point. PetroChina is up 1.1% at HK$9.36.


Source: Dow Jones Newswire

[winston]

not vested

PETROCHINA (00857.HK)'s TP cut to $13 by BofA ML on disappointing results

PETROCHINA (00857.HK)'s third quarter profit amounted to RMB24.9 billion, missing Bank of America Merrill Lynch's estimate of 22%.

The lower-than-expected 3Q profit was mainly due to low crude and natural gas prices, coupled with larger-than-expected losses on imported natural gas and refinery unit, said Bank of America Merrill Lynch, who pointed out the business performance of exploration and production as well as natural gas and pipe units were worse than expectations.

Although loss on refinery and petrochemical unit was higher than expected, it pared by a large extent, said the broker, who foresees such loss will continue to trim.

The decline in stock price of PETROCHINA after results announcement has presented investors with a good entry point, said the broker, who still considers the oil giant as its top pick in the relevant sector despite lowering full-year earnings per share forecast by 5%.

PETROCHINA's target price was cut to $13 from $13.5.

Source: AAStocks Financial News

[winston]

PETROCHINA (00857.HK) rated OW, TP hiked to $11 by JPM
2013-07-02

JP Morgan put Overweight on PETROCHINA (00857.HK) with target price hiked from $8.25 to $11.

Its major catalysts include sales of assets to reduce debts, asset optimization, further surges in natural gas prices, rises in oil prices and general improvement in macro economy in mainland China.


Source: AAStocks Financial News

[winston]

<Research Report>PETROCHINA (00857.HK) unchanged at Buy, target reduced to $10 - UBS
Jan 23, 2014

UBS reduced PETROCHINA (00857.HK) 2013-15 earnings per share forecasts by 4%/7%/11% to RMB0.68/0.67/0.71, due to the estimates on refinery and chemical business.

The broker believed PETROCHINA's profit momentum depends on the company's ability to raise gas contract prices. Current inflation and oil prices will be sufficient to support gas contract prices, but it's hard to predict the time for the price hike and magnitude.

PETROCHINA has been underperforming as it fails to unlock gas business value under government supervision; moreover, the company's policy has been invisible and has involved in corruption scandal.

PETROCHINA was unchanged at Buy with target price lowered from $11.9 to $10.

UBS prefers SINOPEC CORP (00386.HK) due to higher earnings visibility and an expected increase of 6-12% in oil and gas production.

Source: AAStocks Financial News

[winston]

not vested

PETROCHINA (00857.HK) Anyue gas field proved largest single gas reservoir
2014-01-29

Ministry of Land and Resources announced that the gas reservoir of PETROCHINA (00857.HK) -0.110 (1.444%) Short selling $117.89M; Ratio 14.699%

Anyue gas field has been proven as the largest single reservoir in the Mainland.

Source: AAStocks Financial News

[winston]

not vested

PETROCHINA (00857.HK) rated Hold, target reduced to $9 - Deutsche
2013-12-11

Deutsche Bank maintained PETROCHINA (00857.HK) rating at Hold. On expectation for weakening oil price in 2013-16, the target price was cut from $9.42 to $9.

The 2014-16 forecast of Brent crude oil and WTI oil prices was lowered. The Brent crude oil prices for 2013-16 are estimated at US$97.5, US$100 and US$95 per barrel, against previous estimates of US$106.25, US$105 and US$100.

Deutsche noted that Petrochina is still suffering from a number of factors, such as weak oil price, long- term development of Daqing Oilfield, confusing new gas policy, etc.


Source: AAStocks Financial News