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<Research>BofAS : PETROCHINA Confident in Natural Gas Biz, Focuses on New Energy & Cost Reduction
Recommend 21 Positive 24 Negative 7 |
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PETROCHINA (00857.HK)'s natural gas business recorded a significant improvement in 4Q23 earnings, which included a gain of RMB2.4 billion on higher gas sales, a gain of RMB3 billion from the cost of imported gas, a gain of RMB7 billion on the increase in the average price of gas during the winter heating season, and a profit on the liquidation of financial derivative products, BofA Securities issued a research report quoting PETROCHINA's management as saying. The Company remains confident in its natural gas sales momentum, based on a 5% growth in self-produced gas to meet domestic demand. The growth in gas supply from Russia is expected to keep at 8 billion cubic meters over 2024 and 2025. The deepening of domestic natural gas price reforms and the increase in domestic natural gas demand will grow by 5-8%. The Company plans to achieve new energy output to reach 7% of its overall energy output this year, and will continue its efforts to cut costs for its traditional business, the report also quoted PETROCHINA as saying. The Company's current oil and gas costs are US$51 per barrel and RMB80 cents per cubic meter. BofA Securities kept rating at Buy for PETROCHINA, based on stable earnings supported by oil price and natural gas growth, attractive valuation at 0.8x PB ratio, high dividend yield of 7% and potential surprise from capital management action plan. BofA Securities' target price for PETROCHINA's H-shares is $9. AAStocks Financial News |
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