PetroChina Profit Down

PetroChina said today that it has achieved turnover of RMB2,003,843 million in 2011, representing an increase of 36.7% as compared with last year.

However, due to macro regulations and controls over the prices of domestic refined products, the selling price of the imported natural gas is lower than that of the import price and the substantial increase in taxes and levies.

Under the IFRS, profit attributable to the owners of the Company realized in 2011 was RMB132,961 million, representing a decrease of 5.0% as compared with the previous year; basic earnings per share was RMB0.73, representing a decrease of RMB0.03 from the preceding year.

Under the CAS, profit attributable to the owners of the Company realized in 2011 was RMB132,984 million, representing a decrease of 4.9% as compared with the previous year; basic earnings per share was RMB0.73, representing a decrease of RMB0.03 from the preceding year.

Natural Gas and Pipeline

PetroChina accelerated the construction of oil and gas strategic passways, domestic trunk pipeline networks and storage facilities. The trunk line of the Second West-East Gas Pipeline was completed and became operational in June 2011. The pipeline primarily brings in natural gas from Central Asian countries such as Turkmenistan and Kazakhstan. The trunk line of the Second West-East Gas Pipeline has been linked up with various existing pipelines, forming a natural gas pipeline network in China. The pipeline network is of critical importance to ensuring the supply of energy, the optimization of the energy structure, and the promotion of energy conservation, emissions reduction and hence green development. Jiangsu and Dalian LNG began to supply gas to the West-East Gas Pipeline Network and the northeast China. These contributed strongly to the adjustment of the regional energy structure and the realization of the diversification of natural gas sources.

The Company’s natural gas sales efficiently balanced the two kinds of resources of domestically produced gas and imported gas. The Company strengthened the connections between production, transportation and marketing. The operation of the Company’s pipeline network, as well as the allocation of resources, was optimized to ensure a safe and stable supply of gas to the market. The coverage of the natural gas supply has been extended to include Jiangxi Province and Guangdong Province. The Company’s natural gas utilization business progressed effectively, and the sales volume of natural gas maintained rapid double-digit growth.

Profit from operations of the Natural Gas and Pipeline segment in 2011 was RMB15,530 million, representing a decrease of 23.9% from RMB20,415 million in 2010. This was a result of an increase in losses on imported gas and the impact of higher depreciation in respect of the capitalization of key projects at the same time. Among others, the sale of imported natural gas and LNG recorded a cumulative loss of approximately RMB21,400 million.

1 Chinese yuan = 0.158587 U.S. dollars

[mappress]

LNG World News Staff, March 29, 2012