PetroChina profits plunge

CNPC subsidiary PetroChina posted a 78% decline in profits on Thursday, blaming low oil and gas prices and the global economic slump.

Revenue in 2016 was CNY 1.62 trillion (USD 235 billion), down 6.3% year-on-year, while profit stood at CNY 7.9 billion (USD 1.14 billion), a fraction of the CNY 35.5 billion (USD 5.16 billion) posted for 2015.

While the numbers were in line with an estimate published by the company in January, PetroChina said in a press statement that its operating results had “beaten expectations,” and announced that its board had recommended the payment of an undisclosed “special dividend.”

Efforts to cut costs and to optimise operations will continue in 2017, it added.

“The global economy is expected to continue its moderate recovery in 2017,” the press release said. “The oil and gas market situation is undergoing profound changes… [and] the opportunities outweigh the challenges, and the expectations outweigh the difficulties.”

Shortly after the announcement, PetroChina President Wang Dongjin told Reuters that the company was interested in taking part in Saudi Aramco’s IPO scheduled for next year, as well as in working together with the Saudi giant on projects ranging from petrochemical plants to enhanced oil recovery technologies.

“We are also having discussions on the joint venture Yunnan Petrochemical,” Wang said, adding that the two parties were “making very active progress.”