Singapore Exchange listed China Petrotech Holdings Limited, a leading provider of technical solutions for China’s oil and gas industry, said its net profit rose 6.4 times to RMB13.7 million for the six months ended June 30. (US$1=RMB8.27).

The company said its net profit in the April-June quarter increased to RMB15.6 million from RMB131,000 last year on the back of a 595%-jump in revenue to RMB19.5 million from RMB2.8 million in the same period in 2003.

Basic earnings per share (EPS) increased 6.3 times to RMB6.78 cents in 1H04 from 0.09 cent in 1H03. Net Asset Value per share as at June 30 was RMB0.524, up from RMB0.2291 last year.

In a statement, the company said: “The strong acceptance and growing adoption of our standard IT solutions within the operating units of the three Chinese oil majors helped lift turnover for the group by 536% to a record RMB21.1 million from RMB3.3 million in the first half of last year, reflecting the growing demand for IT solutions in China’s oil and gas industry.”

Solutions upgrades have added to the increase in turnover in the quarter under review, as customers began upgrading of IT solutions implemented more than a year ago. The group expects sales from solutions upgrades to continue.

Executive chairman William Chan said: “We see a significant rise in demand for our IT solutions as the industry pushes towards higher productivity through technological advancement. We are rapidly expanding the range of our IT solutions. Some of the newly developed solutions are in the process of registration in China after the encouraging initial feedback from our customers.

“We can expect these products to contribute positively to our IT solution sales in the near future. The group is in discussion to set up joint research and development centre to develop technical solutions for the oil and gas industry with several parties.

“In addition, there is an huge opportunity for outsourced technical support, consulting services and sales of specialised equipment for the exploration and production operations in China. We plan to introduce some of these services to capitalise on this opportunity.”

Traditionally, revenue in the first half of the financial year is softer than the second half due to the seasonality effects that tend to be more pronounced in the first quarter due to the Chinese festive season and new budget allocation. The group expects the financial performance in 2H04 to be better than 1H04 and FY04 to be better than FY03.

China Petrotech was listed on the SGX main board on June 9, raising net proceeds of RMB69.5 million to be used to fund the expansion of our research and development capabilities, including the establishment of a research and development centre and to fund the production of specialised equipment.

Established in 2001 by a group of experienced geologists and research engineers from the oil and gas majors, China Petrotech is a provider of technological solutions, specialised equipment and services for the upstream activities of the Chinese oil and gas industry, with a focus on the exploration, development and production of oil and gas.

The group’s IT solutions and services include the design and development of standardised software solutions, software customisation, and customers’ support services such as maintenance and upgrading services.