Energy
PetroChina Earnings Rise, Chinese Drivers Pay (PTR, COP, SNP)
Published:
Last Updated:
PetroChina (NYSE:PTR) is China’s largest energy company, and it’s getting bigger. The company reported quarterly earnings of $5.83 billion this morning, up 30% from the same period a year ago. Analysts polled by Reuters expected RMB34.9 billion, compared with the actual profit of RMB39.89 billion ($1.00 equals approximately RMB6.85). PetroChina’s revenues totaled about $44.45 billion.
One week ago, ConocoPhillips (NYSE:COP) reported quarterly net incomeof $5.19 billion on revenues of $70 billion. Year to date, Conocorealized an average price per barrel of crude oil of $107.84, onproduction of 1.764 million barrels. PetroChina had a year-to-dateaverage realized price of $97.24/b on production of 653 million b/d.
PetroChina also refines less crude than Conoco and produces lessnatural gas. Still, for the quarter and for the year, PetroChina ismaking more money than Conoco. Who knew?
Quarterly reports from Chinese companies include statements like this:"In respect of the sales of refined products,[PetroChina] strived toovercome the adverse impacts resulting from domestic refined productprices being lower than those in the international markets and naturaldisasters including cold weather and snow storms in southern areas andearthquakes in Sichuan, performed our social responsibilitiesconscientiously, modified our sales structure and strengthened ouroperation and management." While interesting, there’s not muchinformation there.
What happened is that the government raised the price of gasoline tonearly $3.75/gallon. And that won’t drop again until the governmentlets it. This price rise has boosted profits for refiners likePetroChina and Sinopec (NYSE:SNP). The government has also kicked inabout $2 billion since the beginning of the year to offset poorperformance. PetroChina’s cash flow from operations for the first ninemonths of the year is down 11% from 2007. A number like that wouldhammer the stock of a US company. PetroChina’s share price is up about2% this morning, although the price is off nearly 75% from its 52-weekhigh of $263.47.
Paul Ausick
October 29, 2008
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.