UBS has released a research report stating that PetroChina (00857, 601857.SH) recorded a 7% year-on-year increase in revenue and a 22% year-on-year increase in net profit for the first nine months, with net profit reaching a historical high for the same period; the bank maintains its "Buy" rating and has raised its price target from HK$12.8 to HK$13.3.
The bank noted that PetroChina's revenue and net profit for the first nine months reached RMB 2.32 trillion and RMB 155.8 billion respectively; third-quarter net profit fell 7% quarter-on-quarter to RMB 51.8 billion, in line with the bank's expectations.
The bank pointed out that in the upstream segment, oil and gas production rose quarter-on-quarter in the third quarter, but due to a quarter-on-quarter decline in oil prices, operating profit contracted 13% quarter-on-quarter to approximately RMB 51.6 billion; in the refining and chemicals segment, crude oil processing volume increased 11% quarter-on-quarter in the third quarter, while operating profit expanded 38% quarter-on-quarter, driven by improved refining margins; natural gas sales generated operating profit of approximately RMB 9.2 billion in the third quarter, up 76% quarter-on-quarter.
The bank remains optimistic about the company's operating trends and expects the upstream segment to continue benefiting from high oil prices.