PetroChina announced that in 2020, despite facing challenges brought by COVID-19 and the plummeting international oil prices, the Company adhered to quality-based development, coordinated and implemented a series of measures, including COVID-19 prevention and control, resumption of work, production and operation, reform and innovation, and vigorously executed a process of transformation towards green and low-carbon development, leading to a stabilization of production and operation. 

The Company’s oil and natural gas equivalent output was 1,409.7 million barrels, representing an increase of 4.8% year-on-year; marketable natural gas output was 3,993.8 billion cubic feet, representing an increase of 9.9% year-on-year. The proportion of natural gas output continued to increase, further optimizing the oil and gas output mix, leading to major progress in green and low-carbon transformation. The Company successfully completed the restructuring of its pipeline assets based on market-oriented principles; the transaction received broad acceptance with holders of 99.99% of the Company’s shares voting in favor in a general meeting of shareholders.

Seizing the opportunity of China being the first major economy to keep positive economic growth, the Company took full advantages of the comparative strength of oil and gas industrial chains, and vigorously implemented measures to enhance quality and profitability. By dealing with the challenges brought by the pandemic and low oil price through ultra-normal measures, the Company achieved better-than-expected operating results. 

Under the International Financial Reporting Standards, PetroChina achieved a revenue of RMB1,933,836 million and the net profit attributable to owners of the Company was RMB19,006 million. The unit oil and gas lifting cost of the Company was US$11.1 per barrel, representing a decrease of 8.3% year-on-year. The financial position of the Company remained stable with its gearing ratio decreasing by 2.1 percentage points year-on-year. The Company achieved robust cash flow with net cash flows of the Company generated from operating activities amounting to RMB318,575 million, and free cash flow at RMB70,200 million, representing an increase of 75.8% year-on-year. As the Company attaches significant importance towards ensuring a return for shareholders, the Board recommended a final cash dividend of RMB0.08742 per share, totaling RMB 16 billion. The total amount of cash dividend for the full year will be RMB32 billion, representing an increase of 21.7% year-on-year.

In 2020, the Company’s Exploration and Production segment strived to enhance the value of its oil and gas resources, domestic oil and natural gas equivalent output was 1,409.7 million barrels, representing an increase of 4.8% as compared with last year; marketable natural gas output was 3,993.8 billion cubic feet, representing an increase of 9.9% as compared with last year; the ratio of natural gas output rose to 47.2%, which further enhanced the oil and gas output mix. The Company also focused on risk exploration, promoted concentrated exploration, precise exploration and high-efficiency evaluation in key basins and key areas, and achieved major exploration results. The Exploration and Production segment realized an operating profit of RMB23,092 million.

Outlook

The Company will seize the opportunity of low-carbon transformation and development in the energy sector, actively lay out a low-carbon business model to foster clean production, endeavor to achieve “carbon emissions peak” by around 2025 and “near-zero” emissions by around 2050, thus contributing to achieve the global objective of “carbon emissions peak” and “carbon neutrality”. The Company will adhere to the new development concept and implement the requirements for high-quality development by vigorously carrying out the five development strategies of innovation, resources, market, internationalization, and green and low-carbon. While complying with laws and regulation and laying a solid foundation for safety and environmental protection, the Company will deepen reform and innovation and endeavor to develop its core businesses. The Company will also actively explore a green and low-carbon transformation model and focus on digital transformation and the development of artificial intelligence, constantly enhancing its quality and profitability, and work hard to maximize returns to shareholders.

KeyFacts Energy: PetroChina China country profile