PetroChina reports better than expected Q1 operating results

28 Apr '09

4 min read

PetroChina Company Limited reported that in the first quarter of 2009, the Company continued to focus on its development, despite a challenging and difficult environment including the spread and intensification of the global financial crisis, low international crude oil prices, declining domestic demand for oil and petrochemical products, and increasingly intense market competition.

The Company adhered to its principle of scientific development and continued to implement its core strategies in the areas of resources, market and internationalization. The Company planned in a scientific manner and responded actively with pragmatic measures that brought effective outcomes. PetroChina succeeded in reporting quarter-on-quarter growth and showing month-on-month improvement within the quarter in its operating performance indicators. The Company's production and operations remained stable and continued their development momentum.

In the first quarter of 2009, according to International Financial Reporting Standards, net profit attributable to equity holders of the Company was RMB18.956 billion, while basic earnings per share was RMB0.10. According to the China Accounting Standards, net profit attributable to equity holders of the Company was RMB18.774 billion and basic earnings per share was RMB0.10.

In the first quarter of 2009, the exploration and production operations were adversely affected as a result of a marked decline in crude oil prices.

To combat this, PetroChina continued to develop in a scientific manner and prioritized the principle of efficiency by proactively adjusting domestic production volumes. While ensuring the development in strategic areas such as Daqing and Changqing, the Company reduced ineffective and low-efficiency productions, which resulted in stable crude oil production and relatively rapid growth of its natural gas output.

During the period under review, the Company produced 206 million barrels of crude oil, representing a decrease of 5.7% from the same period of last year. 523.4 billion cubic feet of marketable natural gas was produced, representing an increase of 7.9% from the same period of last year.

In the first quarter of 2009, the refining and chemicals operations responded actively to changes in the domestic oil and petrochemical market. Leveraging on the advantage of integration, the Company focused on efficiency and strengthening production management, and achieved safe and steady operations as well as economies of scale.

During the period under review, PetroChina processed 185 million barrels of crude oil, representing a decrease of 14.6% from the same period of last year. The Company produced 16.366 million tonnes of gasoline, diesel and kerosene, representing a decrease of 13.5% from the same period of last year, while 0.663 million tonnes of ethylene were produced, representing a decrease of 6.5% from the same period of last year.

In the first quarter of 2009, the Company adopted a flexible and effective strategy towards changes in market trends. Production, transportation and marketing were optimized. Efforts were made to strengthen operating efficacy and the ability to adapt to changes in market conditions. During the period under review, PetroChina sold 21.25 million tonnes of gasoline, diesel and kerosene, representing a decrease of 2.8% from the same period of last year.

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