(Yicai Global) May 22 -- Oil service provider Tong Oil Tools Co. plans to pump another USD12 million into its United States subsidiary after rising global oil prices boosted its business in the country and kept the parent from making overall losses in the first quarter.
Houston-based Tong Petrotech Inc. bagged CNY5.5 million (USD863,000) in net profit in the first quarter, compared with a CNY151,800 (USD24,000) loss for the whole of last year, its Xian-based parent said in a statement yesterday.
The gains pushed the parent company into the black, earning it overall profit of CNY3.6 million in the first quarter on CNY305 million (USD48 million) in revenue.
The US unit saw a promising recovery of its perforation services in the first quarter as crude prices rose internationally. The firm expects to see continuous gains throughout this year, the statement added.
The latest injection follows a USD41- billion boost in February, which Tong Oil Tools pumped into the subsidiary to help it keep up with the fast-growing local market. It also added USD20 million into WellChase Energy Inc., another American unit, in March.
Editor: James Boynton