CNPC net plunges 52pc to HK$1.7b

PUBLISHED : Friday, 13 April, 2007, 12:00am
UPDATED : Friday, 13 April, 2007, 12:00am

CNPC (Hong Kong), an oil and gas producer unit of China National Petroleum Corp, posted 16.6 per cent growth in after-tax operating profit to HK$2.25 billion for last year, buoyed by higher oil prices and output.

However, net profit tumbled 52.4 per cent to HK$1.73 billion, as the company lacked comparable one-off gains to match the HK$1.7 billion accounting gain from the acquisition of an oil asset in Kazakhstan in 2005 at a discount to its net asset value.

Net profit is 9.6 per cent lower than the HK$2.49 billion mean forecast of four brokerage analysts polled by Thomson First Call.

Some analysts lowered their profit forecast on CNPC after PetroChina missed earnings estimates last month by 6.6 per cent due to a higher than expected 27.7 per cent jump in the cash cost for one barrel of oil produced, assuming CNPC also faced higher costs.

Turnover grew 15.2 per cent to HK$3.89 billion on the back of a 7.9 per cent rise in crude oil output to 17.76 million barrels and a 19.5 per cent jump in average crude oil sales price to US$51.26.

Earnings per share based on adjusted earnings amounted to 46.73 HK cents, up from 40.51 cents in 2005. A final dividend of 10 cents a share was proposed, up from eight cents.