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PetroChina's (PTR) Q1 Earnings Surge on Oil Price Rally
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Chinese energy giant PetroChina Co. Ltd. announced first-quarter 2018 earnings of RMB 10,150 million or RMB 0.06 per diluted share compared with RMB 5,699 million or RMB 0.03 per diluted share a year earlier.
Earnings per ADR came in at around 94 cents. Moreover, China’s dominant oil and gas producer’s total revenue for the quarter rose 9.9% from the year-ago period to RMB 542,654 million.
The positive comparisons can be primarily attributable to higher oil prices, which helped its exploration and production unit increased surge more than fivefold.
PetroChina followed other big energy names from the country – CNOOC Ltd. (CEO - Free Report) and Sinopec – in reporting encouraging results on the back of higher oil prices.
PetroChina Company Limited Price, Consensus and EPS Surprise
Upstream: PetroChina posted flat upstream output during the three months ended Mar 31, 2018. In particular, crude oil output – accounting for 58% of the total – fell 1.4% from the year-ago period to 213.7 million barrels (MMBbl). Meanwhile, marketable natural gas output was up by 2.1% to 918.5 billion cubic feet (Bcf). As a result, PetroChina’s total production of oil and natural gas remained unchanged year over year at 366.8 million barrels of oil equivalent.
However, average realized crude oil price during the first quarter of 2018 was $63.22 per barrel, representing an 23.1% jump from the year-ago period, while natural gas realizations – at $6.36 per thousand cubic feet – increased 25.2%. This buoyed the upstream (or exploration & production) segment results, which posted an operating income of RMB 9,741 million – rising significantly from the year-ago profit of RMB 1,916 million. A tight leash on oil and gas lifting cost, that decreased 3.7% 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 8,441 million. This is up 3.2% from the year-earlier period earnings of RMB 8,177 million. The improvement in the downstream division was due to higher processing volumes, strict cost control and increased production of high-value products.
PetroChina’s refinery division processed 282.2 MMBbl of crude oil during the three-month period, up 14.9% from 2017. The company produced 2,370 thousand tons of synthetic resin in the period (a rise of 1.8% year over year), besides manufacturing 1,463 thousand tons of ethylene (up 0.8%). It also produced 26,181 thousand tons of gasoline, diesel and kerosene during the period against 22,205 thousand tons a year earlier.
Natural Gas & Pipelines: A rise in natural gas sales and prices helped the Chinese behemoth’s segment earnings. And though PetroChina lost money to the tune of RMB 5,824 million on the sales of imported natural gas and liquefied natural gas (LNG) from Central Asia and Burma, the losses were narrower compared with the first quarter of 2017.
All these factors drove the group’s natural gas business’ income to RMB 11,187 million in the period under review, a substantial improvement from the year-earlier profit of RMB 9,882 million.
Marketing: In marketing operations, the state-owned group sold 42,409 thousand tons of gasoline, diesel and kerosene during the quarter, an increase of 9.8% year over year. Greater volumes were accompanied by expanded refined products exports, stress on high-margin products and numerous marketing initiatives.
Still, PetroChina was not able to counter the adverse factors – slow domestic refined products demand growth and fierce competition – to post a meagre profit of RMB 1,865 million compared to RMB 2,922 million recorded in the same period last year.
Liquidity & Capital Expenditure
At the end of the quarter, the group’s cash balance was RMB 125,570 million, while cash flow from operating activities was RMB 61,802 million. Capital expenditure for the three months reached RMB 57,120 million, up 41.6% from the year-ago level.
Zacks Rank & Stock Picks
PetroChina currently carries a Zacks Rank #5 (Strong Sell).
Meanwhile, one can look at a better-ranked energy player like Wildhorse Resource Development Corporation - a Zacks Rank #1 (Strong Buy) stock.
Wildhorse is a company focused on the acquisition, development, exploration and operation of unconventional, onshore oil and gas properties in the northeastern end of the Eagle Ford Play in South Texas. The 2018 Zacks Consensus Estimate for this Houston, TX-based company is $1.67, representing some 288.4% earnings per share growth over 2017. Next year’s average forecast is $2.19, pointing to another 31.4% growth.
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PetroChina's (PTR) Q1 Earnings Surge on Oil Price Rally
Chinese energy giant PetroChina Co. Ltd. announced first-quarter 2018 earnings of RMB 10,150 million or RMB 0.06 per diluted share compared with RMB 5,699 million or RMB 0.03 per diluted share a year earlier.
Earnings per ADR came in at around 94 cents. Moreover, China’s dominant oil and gas producer’s total revenue for the quarter rose 9.9% from the year-ago period to RMB 542,654 million.
The positive comparisons can be primarily attributable to higher oil prices, which helped its exploration and production unit increased surge more than fivefold.
PetroChina followed other big energy names from the country – CNOOC Ltd. (CEO - Free Report) and Sinopec – in reporting encouraging results on the back of higher oil prices.
PetroChina Company Limited Price, Consensus and EPS Surprise
PetroChina Company Limited Price, Consensus and EPS Surprise | PetroChina Company Limited Quote
Segment Performance
Upstream: PetroChina posted flat upstream output during the three months ended Mar 31, 2018. In particular, crude oil output – accounting for 58% of the total – fell 1.4% from the year-ago period to 213.7 million barrels (MMBbl). Meanwhile, marketable natural gas output was up by 2.1% to 918.5 billion cubic feet (Bcf). As a result, PetroChina’s total production of oil and natural gas remained unchanged year over year at 366.8 million barrels of oil equivalent.
However, average realized crude oil price during the first quarter of 2018 was $63.22 per barrel, representing an 23.1% jump from the year-ago period, while natural gas realizations – at $6.36 per thousand cubic feet – increased 25.2%. This buoyed the upstream (or exploration & production) segment results, which posted an operating income of RMB 9,741 million – rising significantly from the year-ago profit of RMB 1,916 million. A tight leash on oil and gas lifting cost, that decreased 3.7% 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 8,441 million. This is up 3.2% from the year-earlier period earnings of RMB 8,177 million. The improvement in the downstream division was due to higher processing volumes, strict cost control and increased production of high-value products.
PetroChina’s refinery division processed 282.2 MMBbl of crude oil during the three-month period, up 14.9% from 2017. The company produced 2,370 thousand tons of synthetic resin in the period (a rise of 1.8% year over year), besides manufacturing 1,463 thousand tons of ethylene (up 0.8%). It also produced 26,181 thousand tons of gasoline, diesel and kerosene during the period against 22,205 thousand tons a year earlier.
Natural Gas & Pipelines: A rise in natural gas sales and prices helped the Chinese behemoth’s segment earnings. And though PetroChina lost money to the tune of RMB 5,824 million on the sales of imported natural gas and liquefied natural gas (LNG) from Central Asia and Burma, the losses were narrower compared with the first quarter of 2017.
All these factors drove the group’s natural gas business’ income to RMB 11,187 million in the period under review, a substantial improvement from the year-earlier profit of RMB 9,882 million.
Marketing: In marketing operations, the state-owned group sold 42,409 thousand tons of gasoline, diesel and kerosene during the quarter, an increase of 9.8% year over year. Greater volumes were accompanied by expanded refined products exports, stress on high-margin products and numerous marketing initiatives.
Still, PetroChina was not able to counter the adverse factors – slow domestic refined products demand growth and fierce competition – to post a meagre profit of RMB 1,865 million compared to RMB 2,922 million recorded in the same period last year.
Liquidity & Capital Expenditure
At the end of the quarter, the group’s cash balance was RMB 125,570 million, while cash flow from operating activities was RMB 61,802 million. Capital expenditure for the three months reached RMB 57,120 million, up 41.6% from the year-ago level.
Zacks Rank & Stock Picks
PetroChina currently carries a Zacks Rank #5 (Strong Sell).
Meanwhile, one can look at a better-ranked energy player like Wildhorse Resource Development Corporation - a Zacks Rank #1 (Strong Buy) stock.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Wildhorse is a company focused on the acquisition, development, exploration and operation of unconventional, onshore oil and gas properties in the northeastern end of the Eagle Ford Play in South Texas. The 2018 Zacks Consensus Estimate for this Houston, TX-based company is $1.67, representing some 288.4% earnings per share growth over 2017. Next year’s average forecast is $2.19, pointing to another 31.4% growth.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>