Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. PetroChina Company Limited
  6. News
  7. Summary
    857   CNE1000003W8

PETROCHINA COMPANY LIMITED

(857)
  Report
End-of-day quote. End-of-day quote Hong Kong Stock Exchange - 06/18
3.58 HKD   -2.45%
06/21China launches crude oil options open to foreign traders
RE
06/21PETROCHINA COMPANY LIMITED : Ex-dividend day for final dividend
FA
06/16Hong Kong Hang Seng Off 0.7%, Shanghai Down 1.1% As Tech Slips
MT
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Exclusive: China tells PetroChina to stop trading off oil quotas with teapots

06/08/2021 | 05:44am EDT
FILE PHOTO: A PetroChina petrol station in Beijing

SINGAPORE (Reuters) - Chinese authorities have ordered a unit of state-run PetroChina to stop trading off crude oil import quotas with local refineries as part of a crackdown on excessive fuel production, a move that could cut the country's crude imports by 3%, sources said.

Beijing has stepped up scrutiny of crude oil quota use and imports by state and private firms this year to ease a fuel surplus that has weighed on the sector's profits and led to excess emissions that have undermined China's climate goals, said five industry sources with knowledge of the matter.

PetroChina Fuel Oil Co Ltd is a major crude oil supplier to China's independent refineries.

Without additional quotas from the company, crude purchases by the independent refineries, also known as teapots, will fall by 12 million to 16 million tonnes annually (240,000 to 320,000 barrels per day), or roughly 3% of China's total crude imports, the sources said, forcing the firms to import fuel oil instead to keep plants running.

The drop in crude imports by the world's largest oil importer could also cap a recovery in global oil prices, which are now hovering above $70 a barrel.

China has in recent months unleashed an array of measures aimed at curtailing its bloated oil refining sector, from examining illicit trading of import quotas to levying new taxes to curb unwanted fuel supplies.

PetroChina Fuel Oil, which produces and trades fuel oil and bitumen, was ordered in April to stop re-selling imported crude oil and trading off quotas to about half a dozen teapots, a legacy practice the firm has engaged in for years.

"The government is taking a lot more seriously carbon emissions this year, and sees large crude oil imports and large refined fuel exports as something unsustainable," said one official.

Teapots that are processing more crude beyond their quota allowances are expected to be reined in, said the official.

China, the world's second-largest refiner, has since late 2015 allowed over 40 smaller plants to process imported oil to support private investment, but controls overall oil purchases using a quota system to curb wasteful refinery expansions.

Under a legacy scheme endorsed by parent company PetroChina, the fuel oil unit partnered with teapot refineries under a so-called "processing" arrangement, under which the firm pays a processing fee to the teapots and buys back refined products such as diesel at an agreed price, said a second official.

But sources said it was "very tough" to agree on the buy-back terms on prices or fuel quality, so PetroChina Fuel Oil often simply let these plants use its import allowances or sometimes directly resold imported crude oil to them.

"(The investigation) officially ends the years-long partnership between the company and teapots," said a third official.

A PetroChina representative said he was not aware of the situation and was unable to comment.

Top economic planner, the National Development and Reform Commission (NDRC), which is leading the investigation, did not respond to a request for comment.

After being cut off from the crude supply business, PetroChina Fuel Oil will be forced to resume importing fuel oil to supply its four bitumen plants and also expand into other businesses to boost revenue.

"(The company) has to adapt to the changes and expand into new business such as bonded marine fuel and new energies," said the second official, without elaborating.

(Reporting by Chen Aizhu; Editing by Kim Coghill)

By Chen Aizhu


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL -0.41% 74.48 Delayed Quote.42.48%
PETROCHINA COMPANY LIMITED -2.45% 3.58 End-of-day quote.49.17%
S&P GSCI CRUDE OIL INDEX -0.76% 398.3885 Delayed Quote.46.93%
WTI -0.46% 72.669 Delayed Quote.49.08%
All news about PETROCHINA COMPANY LIMITED
06/21China launches crude oil options open to foreign traders
RE
06/21PETROCHINA COMPANY LIMITED : Ex-dividend day for final dividend
FA
06/16Hong Kong Hang Seng Off 0.7%, Shanghai Down 1.1% As Tech Slips
MT
06/13CNOOC  : CNODC to Pay Nearly $3 Billion for Brazilian Oilfield Surplus
MT
06/11Hong Kong Hang Seng Up 0.4% On Oil Issues; Tech Shares Gain
MT
06/11China's teapots snap up fuel oil after 5-year import hiatus - sources
RE
06/10PETROCHINA  : RESOLUTIONS PASSED AT THE ANNUAL GENERAL MEETING FOR THE YEAR 2020..
PU
06/10PETROCHINA  : Resolutions Passed at the Annual General Meeting for the Year 2020..
PU
06/08EXCLUSIVE : China tells PetroChina to stop trading off oil quotas with teapots
RE
06/02Asian ADRs Slightly Lower in Wednesday Trading
MT
More news
Financials
Sales 2021 2 255 B 348 B 348 B
Net income 2021 70 626 M 10 912 M 10 912 M
Net Debt 2021 307 B 47 473 M 47 473 M
P/E ratio 2021 7,85x
Yield 2021 6,61%
Capitalization 931 B 144 B 144 B
EV / Sales 2021 0,55x
EV / Sales 2022 0,51x
Nbr of Employees 432 003
Free-Float 15,9%
Chart PETROCHINA COMPANY LIMITED
Duration : Period :
PetroChina Company Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends PETROCHINA COMPANY LIMITED
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 3,25 CNY
Last Close Price 2,85 CNY
Spread / Highest target 53,2%
Spread / Average Target 14,3%
Spread / Lowest Target -14,6%
EPS Revisions
Managers and Directors
NameTitle
Yong Zhang Huang President & Executive Director
Shou Ping Chai Chief Financial Officer & Secretary
Hou Liang Dai Chairman
Bo Lü Chairman-Supervisory Board
Jigang Yang Chief Engineer
Sector and Competitors
1st jan.Capitalization (M$)
PETROCHINA COMPANY LIMITED49.17%137 243
SAUDI ARABIAN OIL COMPANY0.71%1 881 463
ROYAL DUTCH SHELL PLC14.93%151 646
TOTALENERGIES SE13.20%125 186
GAZPROM28.59%87 498
PETRÓLEO BRASILEIRO S.A. - PETROBRAS-0.07%75 477