PetroChina's income tumbles as crude oil prices fall

PetroChina's net income plunged 35.3 % in the first quarter of this year as crude oil prices tumbled from a year earlier and demand weakened.
Net profit fell to yuan 18.96 bn ($ 2.78 bn), or yuan 0.1 a share, in the first three months, from yuan 29.31 bn, or yuan 0.16 a share in the same period of 2008 under international accounting standards. That's in line with the forecast of yuan 18.5 bn given by Mirae Asset analyst Gordon Kwan.

Sales fell 30 % to yuan 181.58 bn. The company said the average selling price of its crude oil dropped 57.8 % to $ 37.10 a barrel in the first quarter, which also triggered a 5.7 % decline in crude oil output.
"The international financial crisis has continued to spread and deepen in the first quarter, with international oil prices remaining at low level and demand for petroleum and chemical products in the domestic market declining," PetroChina said. But the Beijing-based company said the first-quarter earnings were better than it had expected after the company boosted cost control and reined in capital expenditure.