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PetroChina's Net Profits Double
China's largest oil producer, PetroChina, Monday posted a more than doubled net profit for last year, as a result of oil price hikes and its cost-cutting efforts.
The surging profits, increasing 104.5 per cent to 55.23 billion yuan (US$6.7 billion) year-on-year, tops that of all Hong Kong listed companies, including its rival Sinopec's US$2.3 billion and US$1.2 billion for China National Offshore Oil Company.
PetroChina proposed a final dividend of 0.082 yuan (0.98 US cents) per share after an interim dividend of 0.059 yuan (0.71 US cents) for 2000. Its net earning per share increased 88.2 per cent to 0.32 yuan (3.8 US cents).
Analysts attributed the profit increase to skyrocketing crude oil prices, which rose from around US$10 a barrel in 1999 to an average US$28 a barrel last year, and to PetroChina's ongoing restructuring and cost reduction strategies.
The company sold 719 million barrels of crude oil and 480 billion cubic feet of natural gas last year.
PetroChina, which debuted on stock markets in Hong Kong and New York last June, said it had saved 4.1 billion yuan (US$493.9 million) through its restructuring and cost-cutting moves.
According to the company, its workforce declined by 38,400 last year from the original 500,000 and this was expected to result in an estimated saving of 760 million yuan (US$92 million) annually in the following years.
PetroChina Chairman Ma Fucai told a news conference that 2001 profits could match the profits earned last year if oil prices stay at about US$25 per barrel.
The benchmark Brent crude was quoted at US$25.41 a barrel yesterday.
Ma said the company would maintain its capital expenditure budget for 2001 at about 60 billion yuan (US$7.25 billion) , roughly comparable to the 59.76 billion yuan (US$7.2 billion) it spent in 2000.
Just prior to the release of the results, PetroChina shares closed 2.72 per cent higher at HK$1.51 (19 US cents) on the Hong Kong stock exchange.
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