The Zhitong Finance App learned that Citibank released a research report saying that CNPC (00857)'s third-quarter results were in line with expectations, achieving net profit of 51.8 billion yuan, down 7% month-on-month and up 22% year-on-year; net profit for the first three quarters had reached 83% of the bank's full-year forecast. During the period, profit before interest and tax (EBIT) of the natural gas marketing segment increased 76% month-on-month, but declined 27% year over year, which may be affected by increased losses on imported natural gas and weak demand. Domestic natural gas sales increased by only 0.8% year-on-year in the third quarter. The bank maintains a “buy” rating and a target price of HK$12, and is optimistic about the company's attractive dividend returns and good short-term profit visibility.
In the third quarter, the EBIT of the exploration and production business fell 13% quarterly and increased 29% year over year. Citi believes that the performance is in line with expectations. Oil prices were $79.8 per barrel during the period, down 11% from quarter to quarter. The bank expects the Minas benchmark crude oil price to rise by about 16% from October to the third quarter. It is believed that the company's profit for the fourth quarter will remain stable. Citi pointed out that even if the cost of imported natural gas from pipelines rises, the high cost of liquefied natural gas (LNG) imports still brings procurement advantages to CNPC, and it is expected that its natural gas marketing business will maintain its market share.