Downside RisksDownside risks include execution disappointment and natural gas losses as well as regulatory risks.
Gas Margin VolatilityIndustrial natural gas market price increased significantly since wholesale pricing reform, but PetroChina's margin increased less due to import gas cost volatility.
Oil Price WeaknessRefining and Chemicals stayed weak; softer oil prices may drag on future earnings, but PetroChina has showed strong earnings.