PetroChina Q2 falls on refining squeeze
HONG KONG (Reuters) - PetroChina Co Ltd (0857.HK) (PTR.N) (601857.SS), Asia's top oil and gas producer, posted a disappointing 38 percent dive in quarterly earnings after refining losses and windfall taxes dented gains from soaring crude prices.
Analysts expect the firm to face a tough time again in the second half, even after Beijing raised gasoline and diesel prices by 18 percent late in June, because the government may scrap a tax rebate on imported crude.
Crude oil prices jumped by nearly half in January-June to top $140 a barrel on tight supplies and a weak dollar, boosting the profitability of oil majors from Exxon Mobil Corp (XOM.N) to Royal Dutch Shell (RDSa.L) to record levels.
But state-run PetroChina and Sinopec Corp (0386.HK) (SNP.N) (600028.SS) have found themselves squeezed between skyrocketing crude prices, which hit a record $147 a barrel last month, and state-capped fuel prices, a burden for suppliers of the largest fuel market after the United States.
The largest of China's energy triumvirate, which includes offshore specialist CNOOC Ltd (0883.HK) (CEO.N), said its net profit was 24.74 billion yuan ($3.61 billion) in April-June versus 39.69 billion yuan a year earlier.
The result lagged an average forecast for 26.05 billion yuan from 5 analysts polled by Reuters.
PetroChina has said it won a government subsidy to compensate for refining losses in the second quarter of this year, but is not sure whether it will be extended to the current quarter.
Shares in PetroChina fell 27 percent in January-June, versus Sinopec's 38 percent fall and CNOOC's 1 percent gain. The benchmark Hang Seng Index .HSI fell 21 percent.
PetroChina trades at 12.4 times forecast earnings, against Sinopec's 15.9 times, Exxon Mobil's (XOM.N) 8.5 and BP's (BP.L) 6.
($1=6.849 Yuan)
(Reporting by Judy Hua; Editing by Lincoln Feast and Ken Wills)
