China National Petroleum Corp (CNPC), Asia's biggest oil and gas producer, expects profits to rise 5 percent in 2005, a top executive said on 08 March, foreshadowing much weaker performance than 2004's 50 percent earnings leap. Vice President Jiang Jiemin declined to explain the slowdown, but state media said in January the company's earnings had risen to more than 110 billion yuan ($13.3 billion) in 2004 partly because of a surge in crude oil prices.
Global benchmark US light crude traded above $40 a barrel most of last year, hitting a record $55.67 in October. It was near $55 on Tuesday.
"We expect profits to rise at least 5 percent this year," Jiang told Reuters in a brief interview on the sidelines of China's annual meeting of parliament, without elaborating or defining the profit - gross, net or operating - that he was describing.
"Crude oil and natural gas output will also rise."
State media have said CNPC - part owner of New York- and Hong Kong-listed PetroChina Ltd - produced 111.76 million tonnes of crude oil in 2004, 64 percent of Chinese crude output.
Its Web site (www.cnpc.com.cn) showed that it produced 109.54 million tonnes of domestic crude in 2003. Natural gas has also become a highly profitable part of CNPC's business. The company produced 28.7 billion cubic metres of gas in 2004, 70 percent of Chinese production, state media have said.
Jiang reiterated that listed PetroChina had not ruled out listing shares on domestic exchanges this year. Again, he did not elaborate.
State media have reported that Beijing-based PetroChina might raise up to 40 billion yuan ($4.8 billion) in a domestic share listing that would be China's largest-ever stock sale, to buy assets and to venture into new businesses.
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