Top China ADR Portal

China ADR stock research

Industry Watch

PTR: Revenue - Net Income

PTR: Revenue - Net Income
May 20, 2013 (Chinavestor) China has gained notoriety for its fast growing economy, exceeding analyst and government forecasts for numerous years. Large scale investing into production and urbanization has increased the standard of living for the 1.34 Billion inhabitants of the ‘Land of The Red Dragon’ or as some people has dubbed, the ‘Land of Big Exports’. Oil and gas is heavily consumed and relied on by China’s population. The country serves as the largest importer of oil and gas and second largest consumer. With low domestic reserves, there is a heavy reliance for foreign oil and gas, with companies having to invest profound amounts in their operating segments to meet domestic needs.

Petrochina (NYSE:PTR) is the largest oil and gas company in Asia and fifth largest in the world. Capital expenditures increased 27.6% for the 24 months ended December 31, 2012. Onshore operations in Bohai Bay and Daquing oil fields and the construction of Zhongwei-Guiyang pipeline remain focal points with PTR’s expenditure into each business segment domestically. With acquisitions and developments in Canada, Iraq and other offshore oil and gas fields, capital expenditure will increase to sustain these exploration projects. Alongside the Depreciation & Amortization of the capital assets required for large scale oil companies, depletion of their current reserves is a cost which will eventually be recognised unless attended to.

Fig 1

Petrochina (NYSE:PTR) has recognised an increase in revenues of 21.1% since the end of the first quarter 2011 to the most recent quarter of 2013. Revenue had increased steadily in 2011 from 2010 and continued throughout 2012. What is notable is the decrease in net profits attributable to PTR throughout the 24 month period being analysed. Macroeconomic regulations imposed by China’s ruling government set out to ensure the country consumes more natural gas than crude oil as part of an environment clean-up project. With Chinese states witnessing hazardous pollution levels due to the lack of clean products being consumed, the government has imposed strict regulations on the pricing of domestic products. Petrochina has needed to fund more to import foreign Natural gas, with the import price costing more than what the product sells domestically. 2012 interim figures posted in net income of RMB 62,024 million, which was a 6% decrease over the same period in 2011. This decrease in profits came from fluctuating prices of crude oil, an increase in demand for importing natural gas and tight controls on domestic prices of natural gas which affected the China oil and gas companies drastically. Operating expenses also brought PTR’s net profits down over prior periods of which Depreciation, Amortisation and Depletion amounted to an 11.3% increase over the same interim period in 2011. Petrochina (NYSE:PTR) has needed to pump more funds into exploration for natural gas, to respond to the government policies. As capital expenditures rose, the costs associated with these oil and gas fixed assets and properties also increased.




Strong Money Flows Support HNP

Strong Money Flows Support HNP February 12, 2013 (Chinavestor) What not to like about Chinese utility heavy weight, Huaneng Power Int. (NYSE:HNP) these days? The stock surged over 75% in 2012, the most among large cap NYSE listed ...

4G Outlook in China

4G Outlook in China January 8, 2013 (Chinavestor) China Mobile Ltd (NYSE: CHL), the largest mobile operator in the world, successfully tested 4G trial network in Hong Kong on December 18th, 2012 now aiming to expand its...

China Telecom Industry Competition Report

China Telecom Industry Competition Report October 11, 2012 (Chinavestor) The telecommunication market in China is significant to the world market due to the large population base in China. There are three major players in this market: China ...

Who is bigger? Rusal, Chalco and Alcoa

Who is bigger? Rusal, Chalco and Alcoa October 2, 2012 (Chinavestor) Overall, Aluminum Corporation of China Limited (NYSE: ACH) (Chalco) had a strong revenue growth from FY2009 to FY2011. Over the three years, Chalco’’s revenue grew f...
Page 5 of 64


BUY this domain with all its credentials. has been added to Google News and Finance since 2008! Huge web traffic upside potential! Website is optimized for Chinese stocks but can easily be tweaked. Contact Seller Here

Check out The Benefits of Getting into Google News!

Free weekly newsletter

Get hot China stock news every Monday