SPC, Keppel Corp shares soar on PetroChina deal 25 May 2009 09:29

    SINGAPORE, May 25 (Reuters) - Shares of Keppel Corp <KPLM.SI> 
and Singapore Petroleum Company (SPC) <SPCS.SI> soared as much as 
10.6 percent and 24 percent respectively on Monday, after Asia's 
largest oil and gas producer PetroChina <0857.HK> said it will 
buy Keppel's stake in SPC. 
    PetroChina is buying Keppel Corp's 45.51 percent stake in SPC 
for S$1.47 billion ($1.02 billion) and plans to make a general 
offer to buy the rest of the firm. [ID:nSIN335305] 
    The deal valued the Singapore oil refiner at S$3.2 billion 
and was an equivalent of S$6.25 for each SPC share, compared to 
Friday's closing price of S$5.04. 
    By 0120 GMT, SPC was up 21.4 percent at S$6.12 with 2.4 
million shares traded, while Keppel was 7 percent higher at 
S$7.44. 
    SPC shares a 285,000 barrels per day refinery in Singapore 
with U.S. energy major Chevron Corp <CVX.N>, and it also owns 
upstream oil and gas exploration and production concessions in 
Australia, Southeast Asia and China. 
    It is the first overseas acquisition of a public company by 
PetroChina, and the move for downstream fuel production adds to 
efforts by Chinese oil majors to buy upstream oil exploration 
assets around the world to secure energy supplies. 
    Keppel, the world's largest offshore oil rig builder, said in 
the statement that together with PetroChina it plans to explore 
opportunities in the offshore oil industry and in other areas. 

Blogged with the Flock Browser

Inefficient PetroChina

April 28, 2009

By ANDREW PEAPLE

Just as the first quarter of 2009 could be a nadir for the Chinese economy, so PetroChina will be hoping a 35% drop in first-quarter profit will prove a low point.

But there's less reason to be confident that China's biggest oil refiner is capable of the recovery some predict for the country as a whole.

For sure, fuel demand in China has shown small signs of recovery recently, though the International Energy Agency still expects it to contract this year. It's hardly surprising PetroChina is suffering along with other oil majors, as lower average oil prices bite: The U.K.'s BP saw first-quarter profit dive 59%.

Like BP, PetroChina is looking to cut costs, with oil prices well off of stratospheric heights hit last year. But lack of cost control during the good times could come to haunt PetroChina during a leaner period for the oil sector.

Citi Investment Research says PetroChina spent $35 producing one barrel equivalent of oil last year, up from $14 in 2005.

Those costs could remain high as PetroChina spends more to squeeze out production from its aging oil fields. That's also proving a drain on cash flow. Capital expenditure this year, which includes upkeep of existing oil fields, is predicted to be around the same as last year, about $34 billion, up 27% from 2007.

It's already putting a strain on PetroChina's balance sheet, with borrowing rising fast: $3.6 billion of medium term notes were issued in the first quarter -- boosting the value of outstanding debt by 19% since the end of December.

PetroChina won't have problems raising funds in a crunch, thanks to its government backing. That doesn't mean investors should offer it their own backing, though.

Blogged with the Flock Browser

Petrochina Q1 net profit down 36 pct

   April 28 (Reuters) - Three months ended March 31, 2009 
    (in million yuan unless stated) 
    Shr (yuan)              0.10    vs 0.16 
    Net                     18,774  vs 29,426 
    Operating income        181,582 vs 259,425 
    Company name            PetroChina Co. Ltd. 
    NOTE - PetroChina <0857.HK><PTR.N><601857.SS> is China's 
largest oil producer. 

Blogged with the Flock Browser

Petrochina seeks nod for 100 bln yuan bond

HONG KONG, March 26 (Reuters) - PetroChina Co Ltd <0857.HK> said on Thursday that it would seek shareholders' approval to issue up to 100 billion yuan ($14.6 billion) worth of bonds.

The bonds, with a maturity of not more than 15 years, could be denominated in yuan or other foreign currency, the company said in a statement to the Hong Kong stock exchange.

The proceeds from the issue would be used to fund operational needs, increase the company's liquidity, or finance capital spending, it said. (Reporting by Jun Ebias, editing by Will Waterman) ($1=6.832 Yuan)

Blogged with the Flock Browser

PetroChina Profit Drops; Output Curbs Expected

By ARIES POON and DAVID WINNING

HONG KONG -- PetroChina Co. said oil-price volatility and soaring costs drove its net profit down 22% last year, its first fall in annual earnings since 2001.

This year, PetroChina, China's largest listed oil producer by output, says it confronts "a complex and volatile external environment" as China's economy slows and domestic demand for petrochemical products shrinks.

Industrial activity in China is stagnating as export orders to the U.S. and Europe thin out, hitting oil demand because fewer trucks are needed to deliver goods to market and as oil-fired power plants reduce capacity.

The International Energy Agency recently forecast that China's oil-demand growth in 2009 would be the slowest in nearly 20 years, with diesel demand particularly weak.

PetroChina expects to cut crude-oil output 4.3% this year and refinery runs 1.4% in response to weakening domestic demand. But PetroChina predicts it will keep capital spending at last year's level of 232.2 billion yuan ($34 billion).

PetroChina President Zhou Jiping said Beijing's move to raise price ceilings for gasoline and diesel by 3% to 5% in response to higher global oil prices would lift the company's monthly revenue by 1.26 billion yuan.

Full-year net profit was 114.43 billion yuan, down from 146.75 billion yuan in 2007. Revenue rose 28% to 1.071 trillion yuan from 836.35 billion yuan.

A key reason for the profit fall was a 40.63 billion yuan increase in the windfall taxes paid to the government on oil sales. The tax kicks in whenever oil prices rise above $40 a barrel, and PetroChina said its average selling price in 2008 was $87.55 a barrel, up 34% from 2007.

Earnings were also squeezed by operating losses in its refining-and-marketing arm and chemical business. Operating losses on refining widened to 82.97 billion yuan from 20.68 billion yuan, as PetroChina wasn't able to pass on the cost of rising crude-oil prices in full to consumers because of the government's previous system of strictly capping refined-product prices.

Write to Aries Poon at aries.poon@dowjones.com and David Winning at david.winning@dowjones.com

Blogged with the Flock Browser

PetroChina Q$ Falls 39 pct on drop in oil pricess

HONG KONG, March 25 (Reuters) - PetroChina Co Ltd <0857.HK> <PTR.N> <601857.SS>, Asia's top oil and gas producer, posted a 39 percent drop in fourth-quarter net profit, hit by asset writedowns amid a sharp drop in crude oil prices.

PetroChina, the world's second-largest oil company by market value after Exxon Mobil <XOM.N>, said October-December net profit fell to 20.9 billion yuan ($3 billion) from a restated 34.25 billion yuan a year earlier.

The result, calculated from previously reported quarterly earnings, lagged a consensus forecast for 33.1 billion yuan from 20 analysts polled by Reuters.

For the full year, PetroChina reported a net profit of 114.43 billion yuan. The oil giant posted earnings per share of 0.63 yuan, down from 0.82 yuan a year ago.

The company said its total oil and gas output in 2008 rose 5.7 percent from the previous year.

PetroChina is the latest energy producer to feel the pain from the collapse in crude prices <CLc1>, which have tumbled by two-thirds from a record near $150 a barrel last July.

International oil majors including BP Plc <BP.L> and Royal Dutch Shell <RDSa.L> have posted lower fourth-quarter profits.

PetroChina shares fell 15 percent in October-December, a little less than top Asian oil refiner Sinopec's <0386.HK> 22 percent drop and a 20 percent fall on the benchmark Hang Seng Index <.HSI>. (Reporting by Sui-Lee Wee; Editing by Jacqueline Wong)

Blogged with the Flock Browser