China’s largest oil producer sees profits soar

China’s largest oil producer sees profits soar

/ Financial News / Sunday, 09 September 2018 09:58

Chinese oil and gas conglomerate PetroChina, which is the listed arm of the state-owned China National Petroleum Corporation, has announced that its profits have almost more than doubled in the first-half of the year as the price of crude oil globally continues to rise exponentially.

PetroChina saw its net profits surge by a phenomenal 113.7% from the same period last year in an official statement sent to the Hong Kong Stock Exchange, where the company is publicly listed.

The report claimed that geopolitical risks in many oil-producing countries were a contributory factor in the rise of crude prices globally.

The statement from PetroChina read, “The fundamental supply and demand in the global oil market were on the tight side. The average international oil prices increased substantially as compared with the same period of last year. “

The recovery of crude price was the biggest driver for its strong performance," said Tian Miao, a Beijing-based analyst at Everbright Sun Hung Kai Co, told Bloomberg News. PetroChina may continue to benefit from a rise in the price in the second half."

Sinopec, which is the world's biggest oil refiner and the listed unit of state-owned China Petrochemical Corp, said last week that its first half net profit climbed 51.8 percent from the same period last year to 42.4 billion yuan.

Sinopec attributed the result to strong domestic growth for oil products.

However it also issued a stark warning that the ‘uncertainty of international crude oil prices will increase due to trade frictions and geopolitical tensions’ in the second half this year.

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