Chinese energy giant PetroChina Co. Ltd. (PTR) announced its first quarter earnings of RMB 32.5 billion or RMB 0.18 per diluted share, compared to RMB 19.0 billion or RMB 0.10 per diluted share in the year-earlier quarter. Earnings per ADR came in at $2.64 (Exchange rate: US$1.00 = RMB 6.8305, 1 ADR = 100 shares), ahead of the Zacks Consensus Estimate of $2.49.
The positive comparisons can be primarily attributable to soaring oil prices amid strong domestic energy demand. PetroChina’s total revenue for the quarter totaled RMB 318.8 billion, an increase of 75.2% from the year-earlier period.
Upstream
The company’s upstream segment posted strong results on the back of higher realized prices and production. Crude oil output rose 2.1% from the year-ago period to 210.1 million barrels (MMBbl), while marketable natural gas output was up 16.5% to 609.9 billion cubic feet (Bcf).
The average realized crude oil price during the first three months of 2010 was US$70.01 per barrel, representing an increase of 88.7% from US$37.1 per barrel in the corresponding period of the previous year. The average realized natural gas price during the first quarter of 2010 was US$3.28 per thousand cubic feet (Mcf), up marginally (by 0.6%) from US$3.26 per Mcf in the year-ago period.
Downstream
PetroChina’s refinery division processed 215.4 MMBbl during the three month period, up from 185.4 MMBbl in 2009. The company produced 1.376 million tons of synthetic resin in the quarter (a rise of 32.3% year-over-year), besides manufacturing 0.908 million tons of ethylene (up 37.0% from the first quarter of 2009). It also produced 18.8 million tons of gasoline, diesel and kerosene during the period, as against 16.4 million tons a year earlier. In marketing operations, the group sold 27.0 million tons of gasoline, diesel and kerosene, an increase of 27.3%.
Liquidity & Capital Expenditure
As of Mar 31, 2010, PetroChina’s cash balance stood at RMB 137.5 billion. Cash flow from operating activities was RMB 82.2 billion. Capital expenditure for the period reached RMB 58.6 billion, up 53.6% from the year-ago level.
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