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Page added on August 25, 2011

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PetroChina: warns of ‘severe’ market

Business

The Chinese oil and gas giant saw soaring costs devour much higher revenues in the first half to post a similar profit to a year ago.

PetroChina said it piled on revenues in the six months to the end of June despite “a complex macro-economic environment” which saw volatility in oil prices and poor demand for petrochemical products.

The second half could prove even more challenging with the company warning: “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.”

Net profit in the first half hit 66 billion Chinese yuan ($10.33 billion) as compared with 65.33 billion yuan a year earlier.

This was despite sales soaring from 684.8 billion yuan to 952.25 billion as oil and gas production shot up. Much of the gain was eaten by inflated costs of 854.8 billion yuan as compared with 595.86 billion yuan.

Crude oil production climbed 5% to 446 million barrels with natural gas production up 5.3% to 1186 billion cubic feet. In total production shot up to 644 million barrels of oil equivalent.

upstreamonline



One Comment on "PetroChina: warns of ‘severe’ market"

  1. BillT on Fri, 26th Aug 2011 4:29 am 

    This is or will be true of all oil companies in the future. Higher and higher costs until it is too expensive for consumers and demand drops, but costs won’t. Then we shall see how profitable it will be.

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