28 April 2008, Beijing - PetroChina Company Limited ("PetroChina" or the "Company", SEHK stock code 0857; NYSE symbol PTR; SSE stock code 601857) continues to maintain a progressive trend that is in line with the overall goal for the year. During the first quarter of 2008, the Company’s key businesses proceeded as planned. With the stable operation and production, the Company’s major production indicators increased steadily and the growth continued.
In the first quarter of 2008, based on the International Financial Reporting Standards (“IFRS”),the Company's turnover reached RMB 259.048 billion, representing an increase of 41.9 percent from the same period of previous year. In the midst of the crude price surge, the price difference between the international crude and the domestic refined product price has been widening. The Company’s stable oil supply resulted in severe loss in refining and marketing business. PetroChina also experienced an increasing special levy and increasing prices of imported crude oil, feedstock oil and other raw materials during the quarter. Based on the IFRS, the Company recorded a net profit attributable to equity holders of the Company of RMB 28.885 billion for the reporting period, representing a decrease of 31.5 percent from the same period of previous year. The basic and diluted earnings per share were RMB 0.16, representing a decrease of approximately RMB 0.08 from the same period of previous year. Based on the China Accounting Standard for Business Enterprises, the Company recorded a net profit attributable to equity holders of the Company of RMB 26.519 billion for the reporting period, representing a decrease of 28.6 percent from the same period of previous year. The basic earnings per share were RMB 0.14, representing a decrease of approximately RMB 0.07 from the same period of previous year.
With intensified efforts and strengthened production management, PetroChina maintained a stable growth of oil and gas equivalent output during the first quarter of 2008. The Company recorded a total oil and gas output of 296.8 million barrels of oil equivalent, representing an increase of 6.9 percent from the same period of last year. The crude oil production proceeded smoothly as scheduled and reinforced the Company’s leading position in the industry. Crude oil output reached 216 million barrels, representing an increase of 3.3 percent from the same period of last year. Leveraging the strong market demand for natural gas in winter, the Company achieved a significant growth in natural gas output by increasing production capacity and optimizing operation management. The output of marketable natural gas reached 484.7 billion cubic feet, representing an increase of 18 percent from the same period in 2007.
In the first quarter of 2008, PetroChina sustained a steady growth in the volume of crude oil refining as a result of its strenuous efforts in running refining facilities at full capacity whilst ensuring production safety, further optimizing resource allocation and production management. The Company processed 217 million barrels of crude oil, representing an increase of 7.4 percent from the same period of last year. The Company produced 6.311 million tons of gasoline, 0.529 million tons of kerosene and 12.084 million tons of diesel. In response to the impact caused by the extreme winter weather in the Southern China and the eastern part of Northwest China, the Company increased the supply of low frozen point diesel to meet the demand and provided strong resources supply to support disaster-relief through implementing technology enhancement, adjusting product mix in a timely manner and strengthening the management of deployment and transportation. The Company's marketing network has been further developed in the first quarter of 2008. Sales performance, operational efficiency and market share have been improving. As of the end of March 2008, the number of PetroChina's service stations totaled 18,406, representing an increase of 0.1 percent from the same period of last year.
The Company’s chemicals and marketing segment achieved significant growth in the first quarter of 2008. By enhancing production safety, strengthening stable operation, executing coordinated solutions for production and transportation, optimizing product mix, and responding to market changes, the Company realized rapid production growth and achieved good product development for major chemical products. PetroChina produced 709,000 tons of ethylene, representing an increase of 60,000 tons, or 9.2 percent, from the same period of last year. The Company produced 1.078 million tons of synthetic resin, representing an increase of 67,000 tons, or 6.6 percent, from the same period of last year. The output of synthetic fiber raw materials and polymer reached 439,000 tons, representing an increase of 32.2 percent, from the same period of last year.
PetroChina made smooth progress in its major pipeline projects in the first quarter of this year. The construction of the Second West East Natural Gas Pipeline, which is part of the nation’s first cross border gas importing pipeline project, commenced on 22 February 2008. This pipeline project is strategically important in order to meet the market demand, optimize China’s energy supply structure and maintain the nation’s energy safety. In order to make the first attempt to import the overseas liquefied natural gas, PetroChina has started the Dalian LNG project to mitigate the tight supply of natural gas in Liaodong peninsular and Northeast China. Meanwhile, the Yongqing-Tangshan-Qinhuangdao Connection Line of the Second Shanxi-Beijing Gas Pipeline has been under construction. Upon completion, it will connect the natural gas pipeline network in North and Northeast China and consolidate several gas sources to strengthen the natural gas supply capabilities in Beijing, Tianjin and Hebei.
In the second quarter, the Company will continue to implement its business plans laid down at the beginning of this year by responding proactively to the changes in the domestic and overseas markets, strengthening its production structure, improving its operation and management to facilitate the Company’s rapid growth and efficient development.
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Additional information on PetroChina is available at the Company's website: http://www.petrochina.com.cn
Issued by PetroChina Company Limited.
For further information, please contact:
Mr. Mao Zefeng, Assistant Secretary to the Board of Directors
Tel: (852) 2899 2010 Fax: (852) 2899 2390
Email: hko@petrochina.com.hk
Distributed through Hill & Knowlton Asia Ltd. For enquiries, please contact:
Ms. Helen Lam
Tel: (852) 2894 6204 / 9277 7672 Fax: (852) 2576 1990
Email: helen.lam@hillandknowlton.com.hk