by winston » Fri Mar 27, 2015 4:05 am
not vested
Oil price drop throttles PetroChina profit
PetroChina (0857), the country's biggest oil and gas producer, posted its lowest annual profit in five years as falling crude oil prices squeezed earnings.
Net income slumped 17 percent to 107.2 billion yuan (HK$133.86 billion) last year from 129.6 billion yuan in 2013, it said yesterday.
PetroChina is seeking to cut costs by holding back investment and reducing output as Brent, a benchmark for half of the world's crude trading, dropped 48 percent last year.
Oil and gas production rose 3.6 percent to 1.45 billion barrels of oil equivalent in 2014, and realized crude oil price dropped 13 percent to 3,939 yuan a ton, according to the statement. Turnover rose 1.1 percent year-on-year to 2.28 trillion yuan last year.
Capital spending for 2015 will be 8.8 percent lower at 266 billion yuan than the year before, adding to the 8.4 percent reduction last year.
"In 2015, the global economy is expected to continue to recover at a low speed, subject to some unstableness and uncertainties. The energy sector is currently under substantive adjustment," the firm said.
The state enterprise is one of the hardest hit by President Xi Jinping's anti-graft campaign that has snared more than a dozen senior officials at the Beijing-based company and its parent China National Petroleum Corp.
Authorities said this month that PetroChina vice chairman and non-executive director Liao Yongyuan was being investigated by the ruling party's Central Commission for Discipline Inspection for "severe violations of discipline and law."
In the annual report, PetroChina confirmed Liao was under investigation and said he had resigned.
Shares of PetroChina advanced 0.9 percent to HK$8.35 yesterday before the results came out.
Source: BLOOMBERG
It's all about "how much you made when you were right" & "how little you lost when you were wrong"