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PetroChina (PTR) Q3 Earnings Surge in Best Quarter Since 2014
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Chinese energy giant PetroChina Company Limited announced third-quarter 2018 earnings of RMB 21,036 million – the most since 2014 – or RMB 0.115 per share, compared with RMB 4,690 million or RMB 0.026 per share a year earlier. Moreover, China’s dominant oil and gas producer’s total revenue for the quarter rose 24.8% from the year-ago period to RMB 601,111 million.
The positive comparisons can be primarily attributable to higher commodity prices and strict cost control, which helped its exploration and production unit earnings surge.
However, earnings per ADR of $1.69 failed to match the Zacks Consensus Estimate of $2.54 on tepid oil production growth and massive gas import losses.
PetroChina Company Limited Price, Consensus and EPS Surprise
PetroChina followed other big energy names from the country — CNOOC Ltd. (CEO - Free Report) and Sinopec — in reporting higher third-quarter numbers.
CNOOC, China’s dominant producer of offshore crude oil and natural gas, reported surging revenues on higher commodity prices.
Meanwhile, Sinopec also experienced a jump in its income as the largest petroleum and petrochemical company in Asia saw strong refining margins.
Nine-Month Segmental Performance
Upstream: PetroChina posted higher upstream output for the nine months ended Sep 30, 2018.
Crude oil output – accounting for 60% of the total – edged up 0.5% from the year-ago period to 663.3 million barrels (MMBbl), while marketable natural gas output rose 4.8% to 2,661.6 billion cubic feet (Bcf). As a result, PetroChina’s total production of oil and natural gas increased 2.2% year over year to 1,107 million barrels of oil equivalent.
Moreover, average realized crude oil price during the first three quarters of 2018 was $67.93 per barrel, representing a 39.3% jump from the year-ago period, while natural gas realizations – at $5.72 per thousand cubic feet – increased 13%. This buoyed the upstream (or exploration & production) segment results, which posted an operating income of RMB 57,884 million – rising significantly from the year-ago profit of RMB 10,983 million. A tight leash on oil and gas lifting cost, that decreased 3% compared with the same period of last year, also helped results.
Downstream: The Beijing-based company’s ‘Refining & Chemicals’ business generated an operating income of RMB 36,631 million. This is up 32.1% from the year-earlier period earnings of RMB 27,732 million. The improvement in the downstream division was due to optimized resource allocation, strict cost control and increased production of high-value products.
PetroChina’s refinery division processed 825.6 MMBbl of crude oil during the nine-month period, up 10.9% from 2017. It also produced 77,150 thousand tons of gasoline, diesel and kerosene during the period against 67,591 thousand tons a year earlier.
Natural Gas & Pipelines: A rise in natural gas sales and prices, optimal utilization of its marketing channels and resources, together with pipeline transportation profitability helped the Chinese behemoth’s segment earnings. These factors drove the group’s natural gas business’ income to RMB 19,719 million in the period under review, an improvement from the year-earlier profit of RMB 18,045 million.
However, PetroChina lost money to the tune of RMB 19,957 million on the sales of imported natural gas and liquefied natural gas (LNG) from Central Asia and Burma. The losses were wider compared with the first three quarters of 2017 due to the increase in natural gas imports.
Marketing: In marketing operations, the state-owned group sold 136,717 thousand tons of gasoline, diesel and kerosene during the first three quarters, an increase of 8.5% year over year. Greater volumes were accompanied by expanded refined products exports, stress on high-margin products and numerous marketing initiatives due to which sales for the division were up 21.5% to RMB 1,465,026 million.
Consequently, PetroChina was able to counter abundant domestic refined products supply and the fierce competition to post a higher profit of RMB 6,424 million compared to RMB 5,734 million recorded in the same period last year.
Liquidity & Capital Expenditure
As of Sep 30, 2018, the group’s cash balance was RMB 167,804 million, while cash flow from operating activities was RMB 256,937 million. Capital expenditure for the nine months reached RMB 148,080 million, up 18.9% from the year-ago level.
Zacks Rank & Stock Pick
PetroChina currently carries a Zacks Rank #3 (Hold).
A better-ranked player in the energy space is Bonanza Creek Energy, Inc. , which carries a Zacks Rank #1 (Strong Buy).
Bonanza Creek’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average positive surprise being 12.9%.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
PetroChina (PTR) Q3 Earnings Surge in Best Quarter Since 2014
Chinese energy giant PetroChina Company Limited announced third-quarter 2018 earnings of RMB 21,036 million – the most since 2014 – or RMB 0.115 per share, compared with RMB 4,690 million or RMB 0.026 per share a year earlier. Moreover, China’s dominant oil and gas producer’s total revenue for the quarter rose 24.8% from the year-ago period to RMB 601,111 million.
The positive comparisons can be primarily attributable to higher commodity prices and strict cost control, which helped its exploration and production unit earnings surge.
However, earnings per ADR of $1.69 failed to match the Zacks Consensus Estimate of $2.54 on tepid oil production growth and massive gas import losses.
PetroChina Company Limited Price, Consensus and EPS Surprise
PetroChina Company Limited Price, Consensus and EPS Surprise | PetroChina Company Limited Quote
Chinese Oil Majors’ Results Improve
PetroChina followed other big energy names from the country — CNOOC Ltd. (CEO - Free Report) and Sinopec — in reporting higher third-quarter numbers.
CNOOC, China’s dominant producer of offshore crude oil and natural gas, reported surging revenues on higher commodity prices.
Meanwhile, Sinopec also experienced a jump in its income as the largest petroleum and petrochemical company in Asia saw strong refining margins.
Nine-Month Segmental Performance
Upstream: PetroChina posted higher upstream output for the nine months ended Sep 30, 2018.
Crude oil output – accounting for 60% of the total – edged up 0.5% from the year-ago period to 663.3 million barrels (MMBbl), while marketable natural gas output rose 4.8% to 2,661.6 billion cubic feet (Bcf). As a result, PetroChina’s total production of oil and natural gas increased 2.2% year over year to 1,107 million barrels of oil equivalent.
Moreover, average realized crude oil price during the first three quarters of 2018 was $67.93 per barrel, representing a 39.3% jump from the year-ago period, while natural gas realizations – at $5.72 per thousand cubic feet – increased 13%. This buoyed the upstream (or exploration & production) segment results, which posted an operating income of RMB 57,884 million – rising significantly from the year-ago profit of RMB 10,983 million. A tight leash on oil and gas lifting cost, that decreased 3% compared with the same period of last year, also helped results.
Downstream: The Beijing-based company’s ‘Refining & Chemicals’ business generated an operating income of RMB 36,631 million. This is up 32.1% from the year-earlier period earnings of RMB 27,732 million. The improvement in the downstream division was due to optimized resource allocation, strict cost control and increased production of high-value products.
PetroChina’s refinery division processed 825.6 MMBbl of crude oil during the nine-month period, up 10.9% from 2017. It also produced 77,150 thousand tons of gasoline, diesel and kerosene during the period against 67,591 thousand tons a year earlier.
Natural Gas & Pipelines: A rise in natural gas sales and prices, optimal utilization of its marketing channels and resources, together with pipeline transportation profitability helped the Chinese behemoth’s segment earnings. These factors drove the group’s natural gas business’ income to RMB 19,719 million in the period under review, an improvement from the year-earlier profit of RMB 18,045 million.
However, PetroChina lost money to the tune of RMB 19,957 million on the sales of imported natural gas and liquefied natural gas (LNG) from Central Asia and Burma. The losses were wider compared with the first three quarters of 2017 due to the increase in natural gas imports.
Marketing: In marketing operations, the state-owned group sold 136,717 thousand tons of gasoline, diesel and kerosene during the first three quarters, an increase of 8.5% year over year. Greater volumes were accompanied by expanded refined products exports, stress on high-margin products and numerous marketing initiatives due to which sales for the division were up 21.5% to RMB 1,465,026 million.
Consequently, PetroChina was able to counter abundant domestic refined products supply and the fierce competition to post a higher profit of RMB 6,424 million compared to RMB 5,734 million recorded in the same period last year.
Liquidity & Capital Expenditure
As of Sep 30, 2018, the group’s cash balance was RMB 167,804 million, while cash flow from operating activities was RMB 256,937 million. Capital expenditure for the nine months reached RMB 148,080 million, up 18.9% from the year-ago level.
Zacks Rank & Stock Pick
PetroChina currently carries a Zacks Rank #3 (Hold).
A better-ranked player in the energy space is Bonanza Creek Energy, Inc. , which carries a Zacks Rank #1 (Strong Buy).
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Bonanza Creek’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average positive surprise being 12.9%.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>