October 27, 2010, Beijing — In the first three quarters of 2010, faced with the macro-economic changes in China’s economy, PetroChina ("PetroChina" or “the Company", HKSE: 0857; NYSE: PTR; SSE: 601857) speeded up the transformation of the development mode to adapt to market changes. The Company systematically engineered its production and operational plans, continued to optimise its investments and control its costs and expenses through an all-out effort in precision management. Consequently, the Company’s operation continued to develop in an effective manner. It delivered better-than-expected overall operating performance as the quality of its business continues to improve.
In the first three quarters of 2010, the Company’s total assets continued to grow steadily, while both income and profit recorded significant growth year-on-year, and the overall financial position of the Company was excellent. Based on the International Financial Reporting Standards (IFRS), its net profit attributable to the shareholders of the Company was RMB100.03 billion, basic earnings per share were RMB0.55, up 23.0% year-on-year. According to Chinese Accounting Standards, the Company’s net profit attributable to the shareholders was RMB99.91 billion; basic earnings per share were RMB0.55 up 23.1% year-on-year.
In respect of the exploration and production operations, the Company continued to place emphasis on resources as a strategy and strengthened the meticulous exploration of mature oilfields, actively pushed forward preliminary and venture explorations, and made significant progress in the Tarim Basin, Erdos Basin, Junggar Basin, Qaidam Basin and Bohai Bay Basin. The Company meticulously organised the production, construction and operations in the development of oil and gas fields and proceeded with construction of key projects in a steady manner. Meticulous management at mature oilfields was enhanced. The Company persisted in conducting comprehensive development of new oilfields and raising production per well through technological advancements. In the first three quarters of 2010, the Company produced 640 million barrels of crude oil, representing an increase of 1.3% from the same period of last year. Production of marketable natural gas amounted to 1,684.5 billion cubic feet, representing an increase of 10.5% from the same period of last year and achieving growth in crude oil production in the domestic market while maintaining steadiness as an objective. Output of natural gas maintained rapid growth.
Confronted by the impact from the fluctuations of international crude oil prices at a high level, the refining and chemicals operations fully leveraged its integrated operations advantage. In a market-oriented manner, the Company optimised the allocation of crude oil and readjusted the product mix. On the other hand, the Company strived to enhance product quality and technological progress to bring down processing costs while enhancing processing capabilities and as a result, achieved safe, steady and efficient operation at its production facilities. Significant progress was made in respect of key projects. The construction of Guangxi Petrochemical project with an annual refining capacity of 10 million tons of crude oil was officially commissioned and key projects such as Sichuan Petrochemical and Ningxia Petrochemical also progressed as scheduled. In the first three quarters of 2010, the Company processed 657 million barrels of crude oil, representing an increase of 8.3% from the same period of last year. It produced 57.792 million tones of gasoline, diesel and kerosene, representing an increase of 7.2% from the same period of last year, and 2.673 million tonnes of ethylene, representing an increase of 30.5% from the same period of last year.
In respect of the marketing operations, which faced intense market competition, the Company strengthened its efforts in market research as well as in resources management and deployment, optimised its marketing network and quickened its pace in building storage facilities. The Company constantly enhanced the management levels and service quality to establish a premium brand image and increase its market share. In the first three quarters of 2010, the Company sold 90.921 million tonnes of gasoline, diesel and kerosene, representing an increase of 24.3% from the same period of last year.
In respect of the natural gas and pipeline operations, the Company put its focus on both efficiency and safety. Leveraging its advantage in centralised control of pipeline networks, the Company strengthened its management in production, transportation, marketing and storage, as well as its control over the production and operation processes. Key projects progressed as scheduled. The Company achieved sustained steady growth in the sales volume of natural gas. The Sino-Russia Crude Oil Pipeline is completed, which marks a significant achievement in the oil co-operation between PetroChina and Russian enterprises. This co-operation has a profound meaning and far-reaching benefits for the peoples of the two countries.
In respect of the international operations, the Company actively expanded overseas oil and gas co-operations, with the segment growing rapidly and increasing its contribution to the Company. The Company joined forces with Shell in the acquisition of Arrow Energy Limited, laying a solid foundation for the coal-seam gas business development in Australia.
Looking ahead to the fourth quarter and beyond, PetroChina will be vigilant to market changes domestically and internationally, upholding the principles of “stable, balanced, efficient, controlled and coordinated”, in its operations. The Company will also organize the production and operation with thorough planning and accomplish increased production targets. The Company is working to lay a sound foundation for its new development during the country’s “12th Five-year Plan” period and reward shareholders, society and all staff with good results.
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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:
PetroChina Company Limited
Hong Kong
Mao Zefeng
Fax: (852) 2899 2390
Tel: (852) 2899 2010
E-mail: hko@petrochina.com.hk
General Administration Department (original PR Department):
Yuan Xinxiang
Fax: (8610) 6209 9558
Tel: (8610) 5998 6037
E-mail: yuanxx@petrochina.com.cn
PR Agency (Overseas media):
Hill & Knowlton Asia Limited
Shirley Lo
Fax: (852) 2576 3551
Tel: (852) 2894 6214
E-mail: shirley.lo@hillandknowlton.com.hk
PR Agency (Domestic media):
EverBloom Investment Consulting Lt. Co.
Shen Di
Fax: (8610) 5977 6211
Tel: (8610) 5166 3828
E-mail: di.shen@everbloom.com.cn