17 March 2011, Beijing – PetroChina Company Limited ("PetroChina" or “the Company", HKSE: 0857; NYSE: PTR; SSE: 601857) announced today that, for the year ended 31 December, 2010, the Company recorded profit attributable to equity holders of the Company of RMB139.87 billion according to China Accounting Standards (“CAS”), representing a year-on-year increase of 35.6%, or RMB139.99 billion according to International Financial Reporting Standards (“IFRS”), representing a year-on-year increase of 35.4%.
In 2010, as per CAS, the Company realized a turnover of RMB1,465.42 billion, representing a year-on-year increase of 43.8%, and basic earnings per share were RMB0.76, an increase of RMB0.20 compared with the previous year. According to IFRS, the Company’s turnover was RMB1,465.42 billion, representing a year-on-year increase of 43.8%. Basic earnings per share were RMB0.76, representing an increase of RMB0.20 on a year-on-year basis. The increase in turnover and net profit were higher than that of the crude oil price, demonstrating that the Company’s production and operations strategies were well-targeted, scientific and effective.
According to the resolution of the Board of Directors of the Company, the Company will distribute 45% of net profit under IFRS as a final dividend for the year. The proposed final dividend is RMB0.18357 per share. The proposed total dividend for 2010 is RMB0.34420 per share, including the interim dividend of RMB0.16063.
In 2010, PetroChina actively responded to the impact from the global financial crisis and achieved a stable and fast growth with sustainable development. Faced with a complex macroeconomic environment and severe natural disasters, the Company vigorously implemented its key strategies of “resources, marketing and internationalization” and strengthened the overall balance among production, transportation, marketing and storage. The Company sped up the construction of major projects and strategic projects and strengthened supply to satisfy market demands. The Company also accelerated the transformation of the pattern of business development. PetroChina achieved steady development in production and operations in 2010, with a substantial rise in the overall operating results as compared with 2009.
Exploration and Production
In 2010, the Company persisted in its drive for scale, efficiency and scientific exploration and placed emphasis on key basins and target areas, as well as strengthening pre-exploration, venture exploration and meticulous exploration. The Company made strategic discoveries in major exploration areas. PetroChina ascertained 16 blocks of large-scale reserves, Huaqing and Sulige in Erdos Basin, North Kunlun in Qaidam Basin, Xinglongtai and Qikou in Bohai Bay Basin, Halahatang and Central in Tarim Basin, and Central in Sichuan Basin, laying a foundation for sustaining the “Peak Growth in Oil and Gas Reserves” Program. According to a study from an independent reserve evaluation organisation, the Company’s realised oil and gas reserve replacement ratio was 1.32, of which the oil reserve replacement ratio was 1.02, and the gas reserve replacement ratio was 2.02 in 2010.
In the production at oil and gas fields, the Company strengthened innovation in technologies and management, deployed precision management techniques to further develop the mature oil fields, adhered to exploration of new fields, and increased the production volume of single wells through advanced technologies. Faced with the adverse impact caused by extreme climatic conditions such as severe cold and snowy weather and unusual floods, the Company successfully achieved a restorative growth in production of crude oil. In 2010, PetroChina produced 858 million barrels of crude oil, representing a year-on-year increase of 1.7%, which marks the largest year-on-year increment in production in recent years. Marketable natural gas continued to grow rapidly. Its output reached 2,221 billion cubic feet in 2010, representing a year-on-year increase of 5.2%. Total output of oil and gas reached 1,228 million b-o-e, representing a year-on-year increase of 2.7%.
The Company proactively developed exploration cooperation for unconventional resources while strengthening conventional oil and gas exploration. Breakthroughs were made with international oil companies in joint venture cooperation and cooperation research in coal seam gas, shale gas and low permeability gas.
During the review period, the Exploration and Production segment of the Company achieved operating profit of RMB153.7 billion, representing a year-on-year increase of 46.4%, and continued to be the key contributor to the Company’s overall profit.
Refining and Chemicals
In 2010, faced with high oil price fluctuations and market instability, the Company strived to develop markets through the implementation of precision management by the management of benchmark indicators, optimisation of allocation of resources, inspections of equipment on delivery and commissioning of newly constructed devices in an orderly manner. The Company also actively promoted the upgrading of refined products quality and optimization of product structure. In 2010, the Company’s refineries processed 122 million tons of crude oil, representing a 9.1% growth on year-on-year basis. The Company produced 79.45 million tons of gasoline, diesel and kerosene, representing a year-on-year increase of 8.5%. Chemical commercial products output was 18.06 million tons, representing a year-on-year increase of 5.0%. The economic and technical indices such as the integrated energy consumption and ethylene energy consumption reached record highs.
In 2010, smooth progress and significant achievements were made by strategic structural deployment and adjustment in the Refining and Chemicals business. The refinery project of Guangxi Petrochemical was completed. This project is strategically significant to the Group's operations in southern China for the improvement of the supply of oil products in southwestern China. Major achievements were made in the major refining and chemicals projects’ construction around the oil and gas pipelines. Liaoyang Petrochemical and Jilin PetroChemical Refining reconstruction were completed. Urumqi PetroChemical aromatics, Tarim Fertiliser and Qingyang PetroChemical refining and chemicals reconstruction were put into production. By the end of 2010, the Company achieved an enhanced refining structure including six 10-million-ton refining projects, four ethylene projects, and two aromatics projects.
During the review period, operating profit in this segment reached RMB7.8 billion, representing a year-on-year decrease of 54.7%.
In 2010, faced with market conditions characterized by low demand in the domestic market for refined products in the first half of the year followed by rapid growth in the second half of the year, the Company adjusted sales strategies in a timely manner in accordance with the market changes, strengthened organisation and management of the resources, and developed institutional customers. As a result, the Company achieved a simultaneous growth in sales volume and economic efficiency. The Company’s refined products market share has continued to grow steadily. Sales of refined products reached 120.83 million tons in 2010, representing a year-on-year increase of 19.3%. Of that, domestic sales of oil products reached 101.92 million tons, representing a year-on-year increase of 15.8%. Retail market share increased to 38.4%.
PetroChina took proactive measures to ensure timely oil supplies to the affected areas for disaster relief and production when faced with natural disasters such as the severe drought in southwestern China, the earthquake in Yushu, Qinghai Province, the mudslides in Zhouqu, Gansu Province and floods in some provinces, as well as ensuring supply of clean oil products for the Shanghai World Expo and the Asian Games, achieving synchronous growth in both social and economic benefits.
In 2010, the Marketing segment realised operating profit of RMB16.0 billion, representing a year-on-year increase of 20.3%. The segment is an important contributor to the Company's improvements on competitiveness and overall efficiency.
Natural Gas and Pipeline
In 2010, in the face of rapidly-growing demand, the Company strived to strengthen smooth connection between production, transport, sales and storage and to ensure safety and the steady supply of gas to urban residents, public utility companies and key industrial users.
Major projects developed as planned, and major breakthroughs were made in the construction of our strategic network. The Sino-Russia Crude Oil Pipeline was completed and commissioned. Line B of the Central-Asia China Gas Pipeline and the Zhongwei-Huangpi section of the Second West-East Gas Pipeline were completed and commissioned, introducing natural gas from Central Asia into Central China and helping to solve the problem of tight supply. The full operation of the Yulin-Liangxiang segment of the Third Shaanxi-to-Beijing Gas Pipeline further secured the stable supply of natural gas for the Beijing and Bohai Bay areas.
In 2010, the Natural Gas & Pipeline segment recorded profit from operations of RMB20.4 billion, representing a year-on-year increase of 7.2%.
In 2010, significant achievements were made in overseas oil and gas exploration and production. A 1000-ton/day oil well was discovered in “Block H” in Chad. The aromatics project of PetroKazakhstan proves the new exploration area. Daily crude oil production at the Rumaila project in Iraq achieved an increased production volume of more than 10% as compared with the confirmed basic production volume as of December 2009. The transaction of oil field production in the Halfaya project was finished. Net production output of international business reached 102.3 million barrels of oil equivalent in 2010.
The Company signed several new cooperation projects for oil and gas, with close strategic cooperation with resource countries and international companies. Major breakthroughs were made in the Sino-Russia, China-Central Asia cooperation, heavy oil projects in Venezuela, Canadian oil sands and unconventional natural gas projects. The Company entered the Australian coal seam gas business through the acquisition of Arrow Energy Limited with Shell.
The Company utilised a number of trading skills to expand the international trade business with steady development. The operation of Singapore Petroleum Corporation after acquisition remains smooth. The transaction for the Osaka refining, Japan was completed successfully. The integration of the business met the expectation and reflected the synergistic effect. The Asian oil and gas operational center achieved the initially envisaged scale.
Outlook for 2011
Entering 2011, despite the arduous process of global economic recovery, the world theme of development and cooperation remains unchanged. China still holds inherent advantages for domestic development and its long-term trend of positive development remains. PetroChina’s business development remains in the rising cycle. We are in a strategic period for further development opportunities.
We will continue to adhere to its key strategies on "resources, marketing and internationalisation", and coordinate both domestic and international markets and resources. We will focus on developing our oil and gas business, and stress our comparative advantages. We will implement structural adjustment and optimisation, innovative technology management, and achieve safety, environmental protection and energy saving. We will continue to enhance the company's growth, international competitiveness and sustainability and realise our target of being an environmentally-friendly, internationalised and sustainable company.
Additional information on PetroChina is available at the Company’s website:
Issued by PetroChina Company Limited
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