By Kimberley Kao
Chinese state-controlled oil producer PetroChina posted lower profit and revenue in the third quarter, rounding out mixed results for China's big three oil companies as they flagged slower demand and weaker crude prices in the world's second-largest economy.
PetroChina, the listed arm of state-owned China National Petroleum Corp., said Tuesday that its net profit fell 5.3% from a year earlier to 43.91 billion yuan, equivalent to $6.16 billion. Revenue declined 12% to 702.41 billion yuan.
Domestic demand for refined oil products slowed in the first nine months of the year, while the natural gas market witnessed rapid growth in demand, the company said.
Total sales volume for gasoline and diesel fell 4.6% and 8.6%, respectively, for the nine-month period. Sales volume for kerosene rose 13%.
For January to September, PetroChina said its average realized price for crude oil was $76.88 a barrel, up 2.1% from a year ago, contributing to the 0.7% growth in profit to 132.52 billion yuan for the period. The company said its operating results for the first three quarters of 2024 were a record high.
In the fourth quarter, the company said it will continue to focus on improving its business quality and profitability to meet its annual production and operational targets.
China's other two oil giants on Monday reported a fall in revenue for the latest quarter, reflecting the pressure faced by the Chinese oil-refining industry amid a weaker economy and softer domestic energy demand.
The country's biggest oil refiner, Sinopec, said its profit halved in the third quarter, citing a slump in oil prices as well as declining demand for diesel as electric vehicles become more popular.
Sinopec's refining and marketing earnings before interest and taxes declined on inventory loss, which outpaced the improvement in core refining, Citi Research analyst Oscar Yee said in a report. The company also continued refinery cuts to match the slower demand, Yee said.
Chinese offshore oil-and-gas producer Cnooc blamed a drop in revenue on declining oil prices for the quarter. Its expanded output, however, helped it guard against the oil-price volatility and post a 9.0% rise in profit.
"Given the ongoing efforts in exploration and development, we believe Cnooc has significant upside potential," Citi Research analysts said in a report.
Oil prices tumbled during the quarter as fears over sluggish consumption in China, the world's second-biggest economy, outweighed concerns about escalating tensions in the Middle East.
The International Energy Agency and the Organization of the Petroleum Exporting Countries in October both trimmed their 2024 forecasts for oil-demand growth as a rapid slowdown in Chinese consumption weighed on the global outlook.
Hong Kong-listed shares of Cnooc and Sinopec fell 1.5% and 2.0%, respectively, on Tuesday following the companies' results. PetroChina's shares in Hong Kong ended 2.2% lower ahead of its earnings release.
Write to Kimberley Kao at kimberley.kao@wsj.com
(END) Dow Jones Newswires
October 29, 2024 07:20 ET (11:20 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments