Citi: Maintains "Buy" rating and HK$12 target price on PetroChina (00857.HK); natural gas procurement advantage supports fourth-quarter earnings.

Citi released a research report stating that PetroChina (00857.HK) third-quarter results were in line with expectations, with net profit of RMB 51.8 billion, down 7% quarter-on-quarter and up 22% year-on-year; first three quarters net profit has reached 83% of the bank's full-year forecast. During the period, the natural gas marketing segment's EBIT grew 76% quarter-on-quarter but fell 27% year-on-year, possibly affected by widening losses on imported natural gas and weak demand. Domestic natural gas sales volume in the third quarter grew only 0.8% year-on-year. The bank maintains its "Buy" rating and HK$12 target price, and is optimistic about the company's attractive dividend returns and good short-term earnings visibility.