PetroChina, Sinopec Q3 earnings torpedoed by low oil prices

Third-quarter profits at China’s top two petroleum outfits dropped dramatically, with state-owned PetroChina and Sinopec seeing year-on-year falls of 81.4% and 91.5% for the period, respectively, South China Morning Post reported. PetroChina, whose net profit fell from RMB27.92 billion (US$4.393 billion) to RMB5.2 billion, warned of more trouble if oil prices remain low; Sinopec’s earnings dive outdid its larger rival, tumbling to just RMB1.64 billion. However, some analysts believe oil prices could soon bottom out. “We believe there are signs that the oil market is close to bottoming and may rebalance in the coming 12 months,” wrote BNP Paribas head of Asia energy research Por Yong-liang in a recent report.