Temasek divests Hana stake

SINGAPORE

Temasek had held a 9.6-per-cent share in Hana since 2004 through its wholly-owned subsidiary Angelica Investments. Hana is South Korea’s fourth-largest financial holding firm by assets.

In a statement to MediaCorp yesterday, Temasek said that “as an active investor, Temasek regularly reviews its portfolio and remains open to maintaining, increasing or reducing its holdings, depending on opportunities and market conditions”.

Temasek is estimated to have raised more than US$600 million ($778 million) from the Hana stake sale. According to wire reports, the Hana shares were sold at 33,400 won ($38.40) each, a 6-per-cent discount from Wednesday’s closing price Analysts said news of the stake sale weighed on Hana’s shares, causing them to decline 7.3 per cent to 32,950 won.

The divestment of Hana came a day after Temasek announced its investment of US$400 million in a Brazilian oil and gas firm. — Investment firm Temasek Holdings has confirmed it has sold its entire stake in South Korea’s Hana Financial Group.Ryan Huang

energy ‘trilemma’

Regulations and tiered pricing won’t be enough to help

Singapore control its energy usage, says Trade Minister Lim

WHY  did  Singapore  sell  SPC  to  PetrolChina    ? ? ? ?

Biggest oil producer now linked to largest energy consumer

BEIJING

Russian President Dmitry Medvedev, who is on a three-day visit to China, attended a launch ceremony with his host, President Hu Jintao, for the long-awaited pipeline linking the world’s biggest oil producer with the largest energy consumer.

The deal which was reached last year and will see China receive oil for 20 years in exchange for US$25 billion ($33 billion), is a “milestone” of energy cooperation between the two neighbours, Mr Hu said.

It is also part of Moscow’s efforts to seek new markets for its crude exports, especially in fast-growing Asia.

Mr Nikolai Tokarev, head of the Russian oil pipeline monopoly Transneft, said commercial supplies from the pipeline — which runs from eastern Siberia to the north-eastern Chinese city of Daqing — would begin from Jan 1, and that 15 million tonnes of crude would initially reach China each year.

Russia’s Gazprom, the world’s largest gas producer, signed a framework agreement with the China National Petroleum Company [CNPC] last year on shipments of natural gas to China. The two sides, however, have yet to sort out a pricing deal.

Russian Deputy Prime Minister Igor Sechin said the agreement would be finalised by the middle of next year.

“Russia is ready to meet China’s full demand in gas,” said Mr Sechin, adding that Russia was in talks with China to start supplying gas in 2015.

The two leaders also signed a series of economic and political agreements, including pacts on cooperation in future gas supplies, energy efficiency, renewable energy, nuclear power and the prevention of illegal fishing. They further announced plans to jointly build a US$5 billion oil refinery in northern China.

Beijing is also looking to secure muchneeded resources to fuel its booming economy, now the second-largest in the world behind that of the United States. — The leaders of China and Russia celebrated the completion of a cross-border oil pipeline yesterday, a symbol of growing ties between the two emerging economic powers, particularly in the energy sector.AFP

CNOOC

PETROCHINA

SINOPEC

ONGCO

Govt-imposed price controls cap PetroChina’s gains

BEIJING

Net income climbed to 65.3 billion yuan ($13 billion) in the six months ended June 30, the oil company said yesterday.

That is below the 68.7 billion yuan median estimate of nine analysts surveyed by

China raised fuel tariffs once this year after five increases last year as it sought to limit inflation in the world’s fastestgrowing economy.

To counter a slump in refining margins, PetroChina took stakes worth C$1.9 billion ($2.4 billion) in two Alberta oil-sands projects in February and acquired Brisbane based coal-seam gas producer Arrow Energy

with Royal Dutch Shell for A$3.5 billion ($4.2 billion) this week.

“PetroChina has already concluded quite a few sizable takeover deals over the past few months and more are expected in the future,” said Citic Securities analyst Yin Xiaodong.

The Beijing-based energy producer plans to spend at least US$60 billion ($81 billion) in the next decade on overseas takeovers after paying at least US$6.2 billion in the past year for refineries and reserves in Australia, Canada, Singapore and Central Asia. — PetroChina, the world’s largest company by market value, posted a 29-per-cent rise in first-half profit, missing estimates as government-imposed price controls on petrol and diesel curtailed gains.Bloomberg. Revenue rose 65 per cent to 684.80 billion yuan.AGENCIES

Sinopec’s H1 profit jumps as China growth spurs oil demand

HONG KONG — China Petroleum and Chemical Corp, Asia’s biggest refiner, unexpectedly posted a 6.7-per-cent increase in first-half profit as a rebound in the nation’s economy spurred demand for oil, gas and petrochemicals  Net income at Sinopec, as China Petroleum is known, climbed to 35.5 billion yuan ($7.09 billion) — or 0.403 yuan a share — from 33.3 billion yuan a year earlier, the company said in a statement to the Shanghai stock exchange on Sunday. That compares with a median estimate of 32.4 billion yuan in a survey of 10 analysts compiled by

Bloomberg

This, even as Sinopec posted a 10-per-cent drop in second-quarter profit compared with a year earlier.

Chinese refiners — including Sinopec — had processed 18 per cent more crude oil than a year earlier in the first six months, buoyed by an economy that grew 11.1 per cent in the first half and surpassed Japan in size.

The Beijing-based refiner agreed in March to buy a stake in an Angolan field from its parent for US$2.5 billion to boost crude production and meet domestic demand.

UOB-Kay Hian analyst Wang Aochao said: “Sinopec is likely to purchase more quality oilfield assets from its parent company to boost earnings and, by doing so, the listed unit will be able to offset risks resulting from the government’s policy restrictions on the refining business.”

First-half oil-product sales rose 18 per cent to 68.15 million tonnes, boosting overall revenue during the period by 75 per cent to 936.5 billion yuan, according to yesterday’s statement.

For the full year, Sinopec may report a 3-per-cent increase in profit to 63.4 billion yuan, according to a median estimate of 17 analysts surveyed..

Bloomberg

Chinese refiners — including Sinopec — processed 18 per cent more crude oil than a year earlier in the first six months, buoyed by an economy that grew 11.1 per cent in the first half and surpassed Japan in size.