petrochina

PetroChina Sustains Stable Improvement in Production and Operations in the First Quarter of 2017

2017-04-27   

27 April, 2017, Beijing – PetroChina Company Limited ("PetroChina" or “the Company", HKSE: 0857; NYSE: PTR; SSE: 601857) today announced that, adhering to its principle of steady development, the Company has seized favorable opportunities brought about by increase in international oil prices, brisk demand for natural gas in domestic market and the high price of chemical products in the first quarter of 2017, amidst a moderate recovery in the global economy and stable improvement in China’s economy. The Company proactively adapted to market changes, optimized oil and gas production, strengthened the comprehensive balance of production, refining, storage and trading, deepened reforms and innovations, continued efforts to broaden revenue sources, reduce costs and improve profitability and made a solid start of production and operations in 2017.

In the first quarter of 2017, the Company recorded turnover of RMB493.559 billion, representing an increase of 39.9% over the same period in 2016. Net profit attributable to the shareholders of the Company achieved a turnaround and reached RMB5.701 billion, representing an improvement of RMB19.468 billion over the same period in 2016. The Company maintained a stable financial position and saw its interest-bearing debt, debt-to-asset ratio and debt-to-capital ratio decline respectively, and maintained a favorable cash flow with free cash flow remaining positive.

The Exploration and Production segment optimized the deployment of exploration, consolidated the resource base for sustainable development, coordinated oil and gas development in a scientific manner according to changes in oil prices and the market, resulting in a smoothly organized oil and gas production. In the first quarter of 2017, the Company’s crude oil output reached 216.8 million barrels. Marketable natural gas output was 899.8 billion cubic feet, while oil and gas equivalent output reached 366.8 million barrels, of which 322.6 million barrels were from domestic operations and 44.2 million barrels were from overseas operations. In the first quarter of 2017, the Exploration and Production segment adhered to a low-cost strategy, stepped up efforts to reduce costs and improve efficiency, resulting in a decrease of 2.9% in lifting costs per unit over the same period last year. Owing to multiple factors including strengthened cost control and rising crude oil prices, the Exploration and Production segment turned from loss to profit and achieved a profit from operations of RMB1.916 billion, representing an improvement of RMB22.184 billion over the same period last year.

The Refining and Chemicals segment focused on the principle of market orientation and efficiency, optimized resources allocation and product structure, increased production and sale of high-margin products, and reduced diesel-to-gasoline ratio in a scientific manner, with the ratio being reduced from 1.44 to 1.32 this year compared with the same period last year. The Company seized market opportunities afforded by increased demand of chemical products, and continuously increased the processing load of high-performance equipment. As a result, output of organic chemical materials, synthetic fiber materials and polymers, and synthetic rubber increased by 7.5% and 2.6% over the same period last year, respectively. In the first quarter of 2017, the Company processed a total of 245.6 million barrels of crude oil and produced 22.205 million tons of gasoline, diesel and kerosene. In the first quarter of 2017, the Refining and Chemical segment strengthened its cost control, resulting in a decrease of 6.8% in cash processing cost of refineries over the same period last year. The segment realized a profit from operations of RMB8.177 billion. Of which, the refining business recorded a profit from operations of RMB3.686 billion. The chemical business increased its production and sales of highly profitable products, and recorded a profit from operations of RMB4.491 billion, representing an increase of RMB1.381 billion over the same period last year.

In the Marketing segment, the Company strengthened the control and coordination of refined oil resources, enhanced marketing in high-profitability regions and sales of high-margin products. The Company also expanded overseas high-profitability regions to boost the export of refined oil products, in order to ensure smooth operation of the whole business chain and to enhance its overall profitability. The Company sold 38.639 million tons of gasoline, diesel and kerosene, representing an increase of 1.513 million tons over the same period last year. In the first quarter of 2017, the Marketing segment achieved a profit from operations of RMB2.922 billion, representing an increase of RMB2.496 billion from the same period last year attributed to higher prices of refined oil products, enhanced internal control and efficiency and improved overall performance driven by integrated marketing.

For the Natural Gas and Pipeline segment, the Company ensured sales profitability by coordinating resources including domestic gas, imported gas and liquefied natural gas (LNG) and optimizing production, transportation and sales of natural gas. In the first quarter of 2017, due to factors such as higher gas prices compared to the same period of last year, enhanced marketing efforts and increased sales volume, the Natural Gas and Pipeline segment achieved a profit from operations of RMB9.882 billion, representing an increase of RMB5.165 billion from the same period last year.

Looking ahead into the second quarter, the Company will fully implement each work plan, proactively study and implement concrete and highly targeted measures, and step up efforts to broaden revenue sources, reduce costs and improve profitability. The Company will meticulously organize production and operations, and optimized two value chains of oil and gas, to ensure an improvement in production and operations while maintaining stability, striving to achieve full-year targets.

###

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

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 Strategies                                             Fax: (852) 2576 1990

Linda Pui                                                                     Tel: (852) 2894 6378

                                                                                    E-mail: linda.pui@hkstrategies.com

PR Agency (Domestic media):

EverBloom Investment Consulting Lt. Co.                  Fax: (8610) 8562 3181

Shen Di                                                                       Tel: (8610) 5166 3828

                                                                                    E-mail: di.shen@everbloom.com.cn