Petrochina Realizes Significant Growth in 1Q 2011

PetroChina Company Limited continued to actively implement its strategy of resources, marketing and internationalization in the first quarter of 2011. Faced with the changes in the operating conditions with a positive attitude, the Company achieved steady and rapid development in production and operations by organizing production and operations in a scientific manner, placing continued emphasis on quality and efficiency and striving to reduce costs while increasing efficiency in the period.

Production of major products steadily increased and sustainability in development was further enhanced. Operating results of the Company achieved a significant growth in the first quarter of 2011 as compared with that of the same period last year.

In the first quarter of 2011, the net profit attributable to equity holders of the Company was RMB37,002 million under Chinese Accounting Standards, and basic earnings per share were RMB0.20, representing an increase of 14% year as compared with that of the same period last year. According to International Financial Reporting Standards, the net profit attributable to owners of the Company was RMB37,003 million, and basic earnings per share were RMB0.20, representing an increase of 13.9% as compared with that of the same period last year.

In respect of exploration and production operations, the Company continued to prioritise resources exploration. Leveraging on the opportunity as rising international oil prices, the Company actively optimise resources allocation, thereby achieving a steady increase in crude oil production, while natural gas production continued to grow rapidly. International cooperation on resources bore new fruit, with overseas oil and natural gas production growing rapidly. In the first quarter of 2011, the Company produced 219.1 million barrels of crude oil, representing an increase of 4.3% as compared with that of the same period last year, and 639.3 billion cubic feet of marketable natural gas, representing an increase of 7.1% as compared with that of the same period last year. The Company also realised 325.7 million barrels of oil and natural gas equivalent output, representing an increase of 5.2% as compared with that of the same period last year, of which 26.6 million barrels were overseas oil and natural gas equivalent output, representing an increase of 5.4% as compared with that of the same period last year. In the first quarter of 2011, the exploration and production operations generated operating profit of RMB45,865 million, representing an increase of 38.8% as compared with that of the same period last year.

In respect of refining and chemicals operations, the Company actively coped with the impact of high and volatile crude oil prices by leveraging fully on its integrated advantage in refining and chemicals operations, strengthening the organization and deployment of resources and achieved a steady, safe and efficient operation of its equipment facilities. The international trade was further expanded and the operations continued to increase. In the first quarter of 2011, the Company processed 250.1 million barrels of crude oil, representing an increase of 16.1% as compared with that of the same period last year. The Company produced 22.0 million tons of gasoline, diesel and kerosene, representing an increase of 16.9% as compared with that of the same period last year, and produced 0.921 million tons of ethylene, representing an increase of 1.4% as compared with that of the same period last year. Due to the increasing crude oil prices and the domestic prices for refined oil not being fully adjusted, the refining and chemicals operations incurred an operating loss of RMB3,692 million in the first quarter of 2011, of which the refining operations incurred an operating loss of RMB6,132 million and the chemicals operations realised an operating profit of RMB2,440 million.

In respect of marketing operations, faced with the changes in market conditions, the Company adopted an effective marketing strategy, optimised its sales structure and made great efforts to increase its operating efficiency and market share. In the first quarter of 2011, the Company sold 31.607 million tons of gasoline, diesel and kerosene, representing an increase of 16.9% as compared with that of the same period last year. The marketing operations recorded an operating profit of RMB7,684 million, an increase of 155.3% as compared with that of the same period last year.

In respect of natural gas and pipeline operations, focusing on safe operations and the improvement of efficiency, the Company strengthened the coordination of production, transportation, marketing and storage, as well as its control over the production and operation process. Sales of natural gas maintained a fast growth rate and key projects are progressed in an orderly manner, with positive progress made on certain projects such as the second West-East Gas Pipeline, Jiangsu LNG project and Dalian LNG project. In the first quarter of 2011, the natural gas and pipelines operations recorded an operating profit of RMB 6,885 million, an increase of 14.5% as compared with that of the same period last year.

Looking forward in the second quarter of 2011, the Company will continue to adhere to the principle of stability, equilibrium, efficiency, controllability and coordination. PetroChina will continuously strengthen the management of its production and improve its overall operational efficiency so that it can achieve the development targets for 2011 as being a green, international and sustainable PetroChina.

[mappress]

Source: PetroChina, April 28, 2011;