PetroChina's 2005 Net Profit Rises 28.4 Percent

PetroChina announced Monday that its recorded net profit of RMB133.36 billion (US$16.6 billion) for the year ended December 31, 2005, represents a 28.4-percent increase from the previous year. This marks yet another record high in the company's earnings since its initial public offering.

For the year ended December 31, 2005, PetroChina's turnover reached RMB552.23 billion (US$68.8 billion), representing an increase of 39 percent from 2004. The basic and diluted earnings per share was RMB0.75 (US$0.09), representing an increase of approximately RMB0.16 (US$0.02) from 2004. The company's board recommended a final dividend of RMB0.180325 (US$0.02) per share for 2005. Including the interim dividend of RMB0.157719 (US$0.02) per share, the dividend for 2005 will be RMB0.338044 (US$0.04) per share.

"2005 was filled with opportunities and challenges," said Chen Geng, PetroChina's chairman. "Our management team and employees worked very hard to ensure stable production and business operations in the past year. Combined with enhanced management and a series of M&A initiatives, our efforts led to a strong growth in earnings, which was the highest since our listing, and laid a solid foundation for the company's long-term development."

Exploration and Production

In 2005, the company continued to place exploration a priority, increasing investments in both oil and gas exploration. It reached strategic milestones in exploring seven areas, including the Jidong tidal and shallow water areas in the Bohai Bay Basin, Xujiaweizi in the northern Songliao Basin, Changling in the southern Songliao Basin, Jiyuan in the Erdos Basin, Tazhong in the Tarim Basin, Chuanzhong in the Sichuan Basin, and the northwestern rim of the Junggar Basin. According to independent reserves assessment, the company added 864 million barrels to its crude oil reserves and 4,200 billion cubic feet to its natural gas reserves in 2005. PetroChina realized a replacement ratio of 1.04 for crude oil reserves, 3.14 for natural gas reserves, and 1.49 for oil and gas reserves in 2005.

In 2005, the company's domestic crude oil output recorded the highest growth in recent years, and its natural gas output maintained rapid growth. Its overseas oil and gas output also grew rapidly. Last year, PetroChina saw its domestic and overseas oil and gas output reached an aggregate 1.01 billion barrels of oil equivalent, an increase of 5.1 percent from 2004. Crude oil output reached 823 million barrels, representing an increase of 1.1 percent from a year earlier. Output of marketable natural gas reached 1,120 billion cubic feet, representing a rise of 27.8 percent from 2004.

In 2005, PetroChina's exploration and production segment recorded an operating profit of RMB208.08 billion (US$25.9 billion), representing an increase of RMB77.87 billion (US$9.7 billion), or 59.8 percent, from the previous year. The increase in operating profit was mainly due to higher oil and gas prices and increased sales volumes.