Citigroup says PetroChina (00857.HK) posted Q3 net profit of 51.8 bln yuan, down
7% QoQ and up 22% YoY; nine-month net profit equals 83% of Citigroup’s full-year
forecast. Citigroup notes Minas crude has risen about 16% since Q3 through
October, and expects Q4 earnings to remain steady. Despite higher pipeline
import gas costs, elevated LNG import prices sustain a procurement advantage
that should allow PetroChina’s gas marketing to defend market share. Citigroup
maintains Buy rating and HK$12 PT, citing attractive dividend yield and solid
near-term earnings visibility.
