Kunlun Energy’s Profit Almost Doubles as Oil Prices Rise

Kunlun Energy Co., an oil producer and gas supplier controlled by PetroChina Co., almost doubled profit last year as crude prices rose.

Net income increased to HK$2.42 billion ($310 million), or 48 Hong Kong cents a share, from HK$1.23 billion, or 27 Hong Kong cents a share, in 2009, the company said in a statement to the Hong Kong stock exchange today. Kunlun didn’t release half- year earnings figures.

Kunlun is the operator and developer of nine oilfields in China, Kazakhstan, Thailand, Peru, Oman, Indonesia and Azerbaijan. Crude sales rose 1.1 percent to 16.4 million barrels last year as average oil prices gained 28 percent in New York.

Revenue at the energy supplier, formerly known as CNPC Hong Kong Ltd., rose 47 percent to HK$9 billion.

Kunlun’s gas supply business in China contributed HK$372 to the company’s profit, an increase of 52 percent, the company said. Natural gas accounted for 53 percent of total revenue last year, the first time it surpassed sales from the exploration and production business, according to the statement.

Gas has become “the major growing business of the company in the future,” Kunlun said.

The shares advanced 10 percent in Hong Kong trading in the past 12 months, compared with the 4.9 percent gain in the benchmark Hang Seng Index. Kunlun fell 1.5 percent to HK$11.60 at 10:33 a.m. local time.

Net income may rise to HK$4.4 billion this year, according to a mean estimate of six analysts surveyed by Bloomberg.

To contact the reporter on this story: John Duce in Hong Kong at Jduce1@bloomberg.net

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

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