petrochina

PetroChina Maintains Stable Operations for First Three Quarters of 2016 Profit and Operations Continue to Improve Quarter-on-Quarter

2016-10-28   

28 October,2016 – PetroChina Company Limited (“PetroChina” or “the Company”,HKSE:0857;NYSE:PTR;SSE:601857) today announced that, despite a challenging operating environment,the Company recorded a number of achievements in oil and gas exploration, maintained relatively high profitability for its overseas output, and made steady progress on key projects in the first three quarters of 2016.It maintained the safety,stability and control of its production and operations,with the operating results meeting expectations. The Company achieved this by adhering to the principle of steady development,adjusting and optimizing its production and operating plan in a timely manner in response to the changes in oil prices,and further implementing its measures to broaden revenue sources, reduce costs and improve profitability.

In the face of slumping oil prices and intensified market competition in domestic refined oil products in the first three quarters of 2016,the Company recorded turnover of RMB1,150.437 billion based on International Financing Reporting Standards, representing a decrease of 11.9% over the same period in 2015.Net profit attributable to the shareholders of the Company reached RMB1.731 billion.

Exploration and Production

In the Exploration and Production segment,the Company placed an emphasis on profitability and continuously recorded discoveries in the Yingxi area of Qaidam Basin and Tarim Basin. For domestic oil production,the Company continued to optimize its production plans and output structure.It also managed its domestic natural gas production in an orderly manner,and maintained the steady increase in its overseas oil and gas output.In the first three quarters of 2016,the Company recorded crude oil output of 696.6 million barrels,representing a decrease of 3.6% compared with the same period in 2015. Of this,crude oil output from domestic operations stood at 575.2 million barrels,representing a decrease of 5.1% compared with the same period in 2015.The Company’s marketable natural gas output stood at 2,428.9 billion cubic feet,representing an increase of 6.1% compared with the same period in 2015.Its oil and natural gas equivalent output reached 1,101.5 million barrels,representing a decrease of 0.3% compared with the same period in 2015. The oil and natural gas equivalent output from overseas operations reached 154.7 million barrels,representing an increase of 7.8% compared with the same period in 2015.In the first three quarters of 2016,the Exploration and Production Segment proactively responded to rapid changes in the market as well as movements in oil prices,reducing production capacity with low margins or zero profit by 3.2 million tons per year.It also strengthened its control of investments and costs to vigorously control and reduce losses.The oil and gas lifting cost was USD11.56 per barrel,representing a decrease of 9.9% compared with the same period in 2015.The Exploration and Production segment recorded a loss from operations of RMB3,949 million.Excluding the gain on disposal of the partial interest in Trans-Asian Gas Pipeline Company Limited, the segment recorded a quarter-on-quarter improvement in results.

Refining and Chemicals

For the Refining and Chemicals segment,the Company undertook overall planning in terms of managing profitability,markets and resources.It continued to optimize product structure, managed crude oil processing in a prudent manner,increased the output of chemical products with high added value,and strengthened cost controls.As a result,the segment remained profitable and recorded a further increase in efficiency.In the first three quarters of 2016,the Company processed 707.9 million barrels of crude oil,representing a decrease of 4.6% compared with the same period in 2015.It produced a total of 63.669 million tons of gasoline,diesel and kerosene,representing a decrease of 7.5% compared with the same period in 2015.The Company optimized and reduced the diesel-to-gasoline ratio to 1.41,and also achieved significant growth in output of aviation fuel and high-octane gasoline.The Company leveraged its integrated business model and maintained the workload of its high-margin chemical plants at high levels.The output of chemical products rose 6.6% over the same period in 2015.In the first three quarters of 2016,the Refining and Chemicals segment recorded a profit from operations of RMB34.311 billion,representing an increase of RMB 31.252 billion over the same period in 2015.Of this,the refining business recorded a profit from operations of RMB25.716 billion,representing an increase of RMB 24.055 billion over the same period in 2015.The chemical business and recorded a profit from operations of RMB8.595 billion,representing an increase of RMB7.197 billion over the same period in 2015.

Marketing

Facing an adverse environment stemming from the slowing growth in demand for refined oil products,low prices and intense market competition,the Marketing segment undertook business development through various channels and proactively optimized its sales structure.The number of new service stations set up in the first three quarters of 2016 met the full-year target.Retail capacity increased by more than 1.5 million tons per year over the same period in 2015.International trading made a positive contribution in terms of resources adjustment and profits.The Company sold a total of 118.727 million tons of gasoline,kerosene and diesel in the first three quarters of 2016,unchanged over the same period in 2015.In the first three quarters of 2016,the Marketing segment achieved a turnaround and recorded a profit from operations of RMB6.805 billion,representing an improvement of RMB7.783 billion over the same period in 2015.

Natural Gas and Pipeline

The Natural Gas and Pipeline segment strengthened the coordination and optimization of its domestic and imported gas volume and reduced overall procurement costs.It continuously increased the efficiency and profitability of its pipeline network,and adjusted its sales strategy in tandem with demand in response to seasonal factors.Sale volume growth under the new contracts outstripped that over the same period in 2015,with relatively higher growth recorded in high-end markets such as Beijing-Tianjin-Hebei,Southwestern China and Yangtze River Delta.The Company accelerated construction of the natural gas network branch lines,with 10 natural gas branch lines spanning over 300 km completed during the year.In the first three quarters of 2016, the Natural Gas and Pipeline segment recorded a profit from operation of RMB17.857 billion under the influence of low natural gas prices and other factors.Of this,the segment recorded a net loss of RMB10.573 billion on the sale of imported pipeline gas and LNG, narrowing the loss by RMB1.198 billion over the same period in 2015.

Outlook

Looking ahead to the fourth quarter,the Company will adhere to the principle of steady development and strive to achieve its annual performance indicators, continue to broaden revenue sources,reduce costs and enhance its profitability. The Company will also maintain the balance of production,refining,storage and trading,keep its production and operations stable,as well as proactively promote reforms and innovation,striving to achieve all the targets for the year.

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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

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PetroChina Company Limited

General Administration Department (former PR Department):

Yuan Xinxiang                                                                                                                              Fax:(8610)6209 9558

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Shen Di                                                                                                                                         Fax:(8610)8562 3181

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