PetroChina takes Q1 hit
PetroChina's refining and chemical sectors reported a significant loss in quarter one due to the steep cost of imported oil.
The Chinese oil major reported losses of Y6bn ($926m) in the first quarter of 2011, according to the National Development and Reform Commission. The rising year-on-year cost of imported oil to $96 a barrel – up 24% from the previous year – is cited as the main reason for the steep refining losses.
The NDRC also stated that refined oil consumption rose 13.6% year-on-year in Q1 due to droughts in the winter and spring. Consequently, oil supplies decreased sharply as demand for heating oil and diesel in particular surged, leaving many regions with shortages.
However, PetroChina, the public trade unit of China's largest oil and gas company, is still safe for Q1 as profits from oil product sales grew by more than 155% percent to Y7.6bn ($1.2bn). leaving Y1.5bn profit after offsetting refining losses. The company's overall profits in the first three months of this year were Y37bn ($5.7bn) according to company statistics. Global oil prices also proved a benefit when it came to exporting after PetroChina sold 219m barrels at $91.85/b in Q1.
