Thank you for reading this report and for your continued support for PetroChina. 2013 has certainly proved to be an unusual and challenging year for us. The world economy has entered a period of significant readjustment, and global demand for energy has continued to grow. Competition in the oil and gas market has intensified, and this has increased the risks and challenges facing the Company’s international operations. The Chinese economy is going through “three overlapping changes”: a shift in the pace of economic growth, the temporary impact of structural adjustment and the absorption of China’s early-stage stimulus program. Deeply-embedded structural problems and contradictions such as overcapacity and environmental limitations continued to manifest themselves, increasing the need for a change of course in the petroleum and petrochemical industries. As regards our own development, it became clear that the speed and scale of growth were out of sync with its quality and efficiency, and it was more difficult to maintain a stable growth performance. Complicated by natural disasters such as catastrophic floods, it was extremely difficult to achieve the double goal of “maintaining economic growth and efficiency”. In addition, a number of senior executives of the Company were put under investigation on suspicion of violations of statutory laws and regulations, which shocked the Company and the public. The above all posed unprecedented challenges.
Given these difficulties and constraints, our new Board of Directors and the top management carefully analyzed and determined current opportunities and challenges, and agreed to establish and implement a development policy that pursues quality, efficiency and sustainability, so as to establish PetroChina as a world-class international energy company by 2020. Our employees rose to the challenge and put themselves to work. As a result, our overall performance has been better than expected, with a number of highlights. We maintained good momentum in domestic exploration and production, continued to optimize refining operations, increased oil and gas sales and made strategic breakthroughs in our international operations. Technological innovation played an increasing role in driving development, and the transformation of our management and operations processes and methods continued. As part of the Company’s responsibility to our shareholders, we expanded marketing communications, responded appropriately to stock price volatility, and protected shareholders’ interests. The Company enjoyed steady production levels, systematic operations and a stable workforce. We would like to express our appreciation to all stakeholders for their involvement and interest in our development and to the trust placed in the Company and our staff from society, and their recognition of our achievements, position and contributions.
PetroChina is a company that covers a wide range of businesses, has a great number of stakeholders and commands a lot of attention from the public. The Company is now going through a transition from development focused on increasing scale to development focusing on quality and efficiency. This transition constitutes a crucial juncture in our quest to build a world-class international energy company. The Company will continue its overall strategy to build on strong foundations, and pursue its development policy of quality and efficiency for sustainable growth. The Company affords top priority to the development of oil and gas operations, the deepening of corporate reform, the promotion of innovation as a driver of development, and the strengthening of management. The Company will continue to restructure, transform its methods, increase its dynamism and effectiveness, and ensure production targets are met. We will make special efforts in promoting safety and environmental protection, harmony and stability, and anti-corruption measures, and these three fundamental tasks will be prioritized to their highest level yet. In order to enhance our capabilities in risk prevention and emergency response, and improve performance in health and safety, we will continue to prioritize protecting people, the environment, safety and quality throughout production and operations. We will assign safety and environmental protection responsibilities, widely promote personal safety action plans, and strictly implement safety and environmental measures in key areas and processes. With the objective of creating a harmonious and stable growth environment, we will spare no effort in solving the most pressing and practical issues faced by our employees, and to safeguard their legitimate rights and interests. In addition, we will strengthen contact and communication with investors, partners, customers, suppliers and other stakeholders and the public, and public welfare will be actively supported. The Company will reinforce anti-corruption mechanisms and protection by promoting the development of disciplinary procedures and preventative measures, enhancing leadership management and awareness, and increasing supervision over the exercise of power, with the aim of building PetroChina into a model of transparency and integrity.
As the Company grows, we will actively fulfill our social responsibility to be a good corporate citizen and make new contributions to socio-economic development.