According to a research report from Citi, PetroChina (00857) reported third-quarter results that met expectations, with net profit of RMB 51.8 billion, down 7% quarter-on-quarter but up 22% year-on-year; cumulative net profit for the first three quarters has already reached 83% of the bank's full-year forecast.

During the period, the natural gas marketing segment's earnings before interest and taxes (EBIT) rose 76% quarter-on-quarter but fell 27% year-on-year, likely affected by widening losses on imported natural gas and weak demand. Domestic natural gas sales volume in the third quarter grew only 0.8% year-on-year.

The bank maintains its "Buy" rating and HK$12 target price, and is optimistic about the company's attractive dividend returns and solid short-term earnings visibility.

In the third quarter, the exploration and production segment's EBIT declined 13% quarter-on-quarter but grew 29% year-on-year, which Citi considers in line with expectations. The realized oil price during the period was US$79.8 per barrel, down 11% quarter-on-quarter.

The bank expects that the Minas benchmark crude oil price has risen about 16% since October compared with the third quarter, and believes the company's fourth-quarter earnings will remain stable.

Citi noted that even as pipeline imported natural gas costs rise, the high cost of liquefied natural gas (LNG) imports still gives PetroChina a procurement advantage, and it expects the company's natural gas marketing business to maintain its market share.