Bloomberg News

PetroChina Falls in Hong Kong on Xinhua Report of Refining Loss

October 20, 2011

Oct. 20 (Bloomberg) -- PetroChina Co., the country’s biggest energy producer, fell the most in more than two months in Hong Kong after the official Xinhua News Agency said the company may post a full-year refining loss.

The shares dropped as much as 5.2 percent, the largest decline since Aug. 9, and were at HK$9.23 at the midday break, down 4.9 percent. The benchmark Hang Seng Index fell 2 percent.

PetroChina may incur a refining loss of 50 billion yuan ($7.8 billion) this year and its annual resource tax payments may rise to 29 billion yuan, Xinhua reported in headlines, without saying where it got the information.

The Beijing-based company’s refining segment swung to a loss of 23.4 billion yuan in the first six months from a profit a year earlier, according to an Aug. 25 statement. The government, which controls fuel prices to curb inflation, raised tariffs by about 10 percent in the first half, while crude in New York averaged 26 percent higher from a year earlier.

China said this month it will replace a volume-based oil and natural gas tax paid by producers with a value-based tax of 5 percent to 10 percent starting in November.

--Editors: Keith Gosman, Baldave Singh

To contact the reporters on this story: Ryan Woo in Singapore at rwoo5@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus