OREANDA-NEWS. November 01, 2012. PetroChina Company Limited ("PetroChina" or “the Company", HKSE: 0857; NYSE: PTR; SSE: 601857) today announced that in the first three quarters of 2012, in light of the severe conditions caused by the weak global economic recovery and the slow-down in the demand for oil and petrochemical products and frequent natural disasters, the Company maintained steady production and operations, with key production indices at optimal levels compared to the same period last year. It managed to do so by assessing and analyzing situations scientifically, enhancing strategic planning, placing emphasis on the development of its oil and gas business and coordinating and balancing production, transmission, marketing, storage and trading operations, reported the press-centre of PetroChina.

In the first three quarters of 2012, the Company realized turnover of RMB1,598,269 million, representing an increase of 7.8% as compared with the same period last year. However, due to such factors as an increase in the amount of imported natural gas, the selling of imported natural gas in China at lower prices, and macroeconomic regulation and control over the prices of domestic refined oil products, the net profit attributable to the Company’s shareholders under the China Accounting Standards was RMB86,954 million, representing a decrease of 15.9% as compared with the same period last year, with basic earnings per share of RMB0.48; net profit attributable to the Company’s shareholders under the International Financial Reporting Standards was RMB86,956 million, representing a decrease of 15.9% as compared with the same period last year, with basic earnings per share of RMB0.48. Excluding the impacts of abnormal factors, the Company maintained a positive, healthy and efficient development trend.

Exploration and Production
In respect of exploration and production, the Company continued to implement the “Peak Growth in Oil and Gas Reserves” Program. The outlook on oil and gas exploration remained positive with a number of major discoveries and progress in the preliminary prospecting and venture exploration stages. With the consistent efforts in developing production capacity of key oil and gas projects and the scientific organization of oil and gas production, crude oil output increased at a steady pace while natural gas output grew rapidly. Overseas oil and gas operations continued to grow and key cooperation projects progressed steadily.

In the first three quarters of 2012, crude oil output of the Company amounted to 683.2 million barrels, representing an increase of 2.0% as compared with the same period last year, marking one of the largest increment in volume and growth in crude oil in history for PetroChina. The Company’s marketable natural gas output amounted to 1,879.3 billion cubic feet, representing an increase of 8.3% as compared with the same period last year. The oil and natural gas equivalent output was 996.9 million barrels, representing an increase of 3.9% as compared with the same period last year. Of which, 99.5 million barrels were overseas oil and natural gas equivalent output, representing an increase of 7.0% as compared with the same period last year. The profit from the operations of the exploration and production segment amounted to RMB163,293 million in the first three quarters of 2012, representing an increase of 1.6% as compared with the same period last year.

Refining and Chemicals
In respect of refining and chemicals, the Company optimized its resource and product structures. By strengthening management and tapping deeply into its potential internally, the Company sought to reduce losses and increase profitability when compared with the previous quarter. The quality of oil products was upgraded at an orderly pace, while output of high-margin products such as high-grade gasoline and jet fuel continued to grow. A number of key refinery and chemicals projects operated smoothly, with adjustments to strategic arrangement of the Company’s refining and chemical operations made in an orderly manner.

In the first three quarters of 2012, the Company processed 743.5 million barrels of crude oil, representing an increase of 2.5% as compared with the same period last year. The Company produced 67.135 million tons of gasoline, diesel and kerosene, representing an increase of 4.4% as compared with the same period last year.

Due to factors such as the prolonged weakness of the domestic petrochemicals market and the macroeconomic regulation and control over the prices of refined products, the refining and chemicals segment incurred a loss from operations of RMB37,398 million in the first three quarters of 2012, representing a decrease in the loss from operations of RMB1,005 million as compared with the same period last year, of which the refining operations incurred a loss from operations of RMB30,019 million, representing a decrease in loss from operations of RMB11,520 million as compared with the same period last year. As a result of the prolonged weakness in the domestic petrochemicals market, the chemicals operations recorded a loss from operations of RMB7,379 million, representing a decrease of RMB10,515 million as compared with the same period last year.

Marketing
In respect of marketing, the Company faced a challenging operating environment marked by the slowdown in the growth rate of the domestic economy, decrease in domestic demand and fluctuations in oil prices. The Company strengthened its market research and analysis efforts and adjusted its marketing strategies to boost sales and enhance profitability to drive quality and profitability. The scale and quality of the Company’s international trading operations continued to be strengthened, while its capacity in allocating international resources continued to grow.

In the first three quarters of 2012, the Company sold 113.539 million tons of gasoline, diesel and kerosene, representing an increase of 5.9% as compared with the same period last year. However, due to factors such as the sluggish recovery of the global economy and the weak demand for refined products both locally and internationally, profit from operations of the marketing segment amounted to RMB11,792 million in the first three quarters of 2012, representing a decrease of 34.6% as compared with the same period last year.

Natural Gas and Pipeline
In respect of natural gas and pipelines, PetroChina strengthened the coordination among production, transmission, marketing, storage and production control. The construction of key oil and gas pipelines and key trunk pipeline networks progressed in an orderly manner. Meanwhile, the construction of major pipelines of strategic importance such as the Hong Kong branch line of the second West-East Pipeline and the western section of the third West-East Gas Pipeline has commenced. The Company was effective in the bringing strategic investors on board in these projects. The sale of natural gas by the Company effectively balanced the supply of locally produced gas and imported gas. The Company achieved a series of positive results in its dedicated efforts in developing the high-margin markets and emerging markets, with a focus on key regions such as the Yangtze River Delta, Pearl River Delta, Bohai Rim, Sichuan Province and Chongqing.

Due to the widening losses from natural gas imports from Central Asia and LNG imports, profit from operations of the natural gas and pipeline segment amounted to RMB885 million in the first three quarters of 2012, representing a decrease of RMB12,348 million as compared with the same period last year.

Outlook
In the fourth quarter of 2012, the upward trajectory of China’s long-term economic development will remain unchanged. As a series of measures are being taken to maintain steady growth, the economy in China is expected to develop at a more stable pace, and the favorable policies for the petroleum industry will continue to be improved. PetroChina will be active in responding to the changes in both domestic and global economic situations. By ensuring steady growth and scientific management, organizing stable production and operations, enhancing business management and carrying out the construction of key projects at an orderly pace, the Company will fulfill its production and operational objectives for the year, and will further improve its capabilities in supplying resources, its profitability and resilience to risks while consolidating the foundation for sustainable development.