China's two oil majors will see robust growth in earnings this year, chiefly due to the new oil pricing system and more stable crude prices, analysts said.

When their interim reports for the half-year are released, PetroChina and Sinopec are expected to perform better, especially in their refining businesses, than during the same period last year, they said.

International crude oil prices will have the biggest impact on the two companies' business performance, but other factors, such as domestic refined oil prices and windfall taxes will also play a role, said Liu Gu, analyst, Guotai Jun'an Securities.

China's stimulus package for the petrochemical industry will also give the two companies a boost, Liu added.

According to Gordon Kwan with Mirae Assets, PetroChina is expected to see profits of 8 billion yuan in the first half. The company earlier said its refining business made record high profits in the period since it was listed, without providing details.

As for Sinopec, the country's largest refiner, it would see over 100-percent growth in profit this year, said Liu.

According to the National Development and Reform Commission, China's refineries made a combined profit of 45.4 billion yuan in the first five months, compared with a loss of 57.2 billion yuan in the same period last year.

(China Daily July 24, 2009)