PetroChina Posts $2.3bn Q1 Loss
Chinese state-run PetroChina posted a net loss in the three months to March 31 (Q1 2020) owing to a drop in oil and gas prices, it said on April 29 in a stock exchange filing.
The company reported a net loss of yuan 16.23bn (US$2.3bn) as against a profit of yuan 10.25bn in the same period of the previous year. Revenue during the quarter fell 14.4% yr/yr to yuan 509bn, the company said.
The average realised price for crude oil during Q1 was US$54.39/barrel, representing a decrease of 8.6% as compared with the same period of last year; the average realised price for natural gas was US$5.10/’000 ft3, down 23.1% yr/yr, PetroChina said.
Crude oil production rose 4.2% yr/yr to 232.7mn barrels and natural gas output rose 8.7% yr/yr to 1,086.9bn ft3, the company said.
For the rest of the year, PetroChina expects the international oil market to remain oversupplied and prices to remain low. The company plans to cut costs and defer non-core projects.
“Faced with an unprecedented and severe situation, the group will highlight its key projects while constraining on its non-major projects, insist on cutting cost as well as enhancing profitability, and adhere to the bottom line thinking of adjusting expenses based on income,” it said.
Last month, while announcing the 2019 annual results, PetroChina did not disclose its capital expenditure and output targets for this year.