6-K
PETROCHINA CO LTD (PCCYF)
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OFFOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of April 2020
Commission File Number: 001-15006
PETROCHINA COMPANY LIMITED
9 DongzhimenNorth Street, Dongcheng District
Beijing, The People’s Republic of China, 100007
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82— )
EXHIBITS
Exhibit Number
99.1 The first quarterly report of the Company for 2020;
99.2 Proposed amendments to the business scope and proposed amendment to the articles of association of the Company;
99.3 Press release regarding the first quarter results.
FORWARD-LOOKING STATEMENTS
This announcement contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual results may differ materially from information contained in these forward-looking statements as a result of a number of factors.
We do not intend to update or otherwise revise the forward-looking statements in this announcement, whether as a result of new information, future events or otherwise. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this announcement might not occur in the way we expect, or at all.
You should not place undue reliance on any of these forward-looking statements.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this announcement to be signed on its behalf by the undersigned, thereunto duly authorized.
| PetroChina Company Limited | ||
|---|---|---|
| Dated: April 29, 2020 | By: | /s/ WU Enlai |
| Name: | WU Enlai | |
| Title: | Company Secretary |
EX-99.1
Exhibit 99.1
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make norepresentation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
PETROCHINA COMPANY LIMITED
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Hong Kong Stock Exchange Stock Code: 857; Shanghai Stock Exchange Stock Code: 601857)
ANNOUNCEMENT
FirstQuarterly Report of 2020
1. Important Notice
| 1.1 | The Board of Directors of PetroChina Company Limited (the “Company”), the Supervisory Committee and<br>the Directors, Supervisors and Senior Management of the Company warrant the truthfulness, accuracy and completeness of the information contained in this quarterly report and there are no material omissions from, or misrepresentation or misleading<br>statements, and jointly and severally accept full responsibility for such quarterly report. |
|---|---|
| 1.2 | This quarterly report has been considered and approved at the fourth meeting of the Board of the Company in<br>2020. All Directors attended this meeting of the Board of Directors. |
| --- | --- |
| 1.3 | Mr. Dai Houliang, Chairman of the Board, Mr. Duan Liangwei, Director and President of the Company,<br>and Mr. Chai Shouping, Chief Financial Officer of the Company, warrant the truthfulness, accuracy and completeness of the financial statements set out in this quarterly report. |
| --- | --- |
| 1.4 | The financial statements of the Company and its subsidiaries (the “Group”) have been prepared in<br>accordance with the China Accounting Standards (“CAS”) and the International Financial Reporting Standards (“IFRS”), respectively. The financial statements set out in this quarterly report are unaudited. |
| --- | --- |
1
2. Basic Data of the Company
| 2.1 | Key Financial Data and Financial Indicators | |||||||
|---|---|---|---|---|---|---|---|---|
| 2.1.1 | Key Financial Data and Financial Indicators Prepared under IFRS | |||||||
| --- | --- | |||||||
| Unit: RMB Million | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |
| Items | As at the end of<br>the reporting<br>period | As at the end of<br>the preceding<br>year | Changes from the endof the preceding yearto the end of thereporting period (%) | |||||
| Total assets | 2,727,028 | 2,732,910 | (0.2 | ) | ||||
| Equity attributable to owners of the Company | 1,212,216 | 1,230,156 | (1.5 | ) | ||||
| Items | From thebeginning of theyear to the end ofthe reportingperiod | From the beginning ofthe preceding year to theend of the precedingreporting period | Changes over the sameperiod of thepreceding year (%) | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net cash flows (used for) / generated from operating activities | (18,096 | ) | 61,765 | (129.3 | ) | |||
| Items | From thebeginning of theyear to the end ofthe reportingperiod | From the beginning ofthe preceding year to theend of the precedingreporting period | Changes over the sameperiod of thepreceding year (%) | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue | 509,098 | 594,815 | (14.4 | ) | ||||
| Net (loss) / profit attributable to owners of the Company | (16,230 | ) | 10,249 | (258.4 | ) | |||
| Return on net assets (%) | (1.3 | ) | 0.8 | (2.1) percentage points | ||||
| Basic (loss) / earnings per share (RMB Yuan) | (0.089 | ) | 0.056 | (258.4 | ) | |||
| Diluted (loss) / earnings per share (RMB Yuan) | (0.089 | ) | 0.056 | (258.4 | ) |
Note: the acquisition of Dalian West Pacific Petrochemical Co., Ltd. (“Dalian West Pacific”) was completed in May 2019, and was accounted for as combination of entities under common control, relevant indicators of the preceding reporting period were adjusted retrospectively.
2
2.1.2 Key Financial Data and Financial Indicators Prepared under CAS
| Unit: RMB Million | ||||||||
|---|---|---|---|---|---|---|---|---|
| Items | As at the end of<br>the reporting<br>period | As at the end of<br>the preceding<br>year | Changes from the endof the preceding yearto the end of thereporting period (%) | |||||
| Total assets | 2,727,303 | 2,733,190 | (0.2 | ) | ||||
| Equity attributable to equity holders of the Company | 1,212,484 | 1,230,428 | (1.5 | ) | ||||
| Items | From thebeginning of theyear to the end ofthe reportingperiod | From the beginning ofthe preceding year to theend of the precedingreporting period | Changes over the sameperiod of thepreceding year (%) | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net cash flows (used for) / generated from operating activities | (18,096 | ) | 61,765 | (129.3 | ) | |||
| Items | From thebeginning of theyear to the end ofthe reportingperiod | From the beginning ofthe preceding year to theend of the precedingreporting period | Changes over the sameperiod of thepreceding year (%) | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operating income | 509,098 | 594,815 | (14.4 | ) | ||||
| Net (loss) / profit attributable to equity holders of the Company | (16,234 | ) | 10,245 | (258.5 | ) | |||
| Net (loss) / profit after deducting non-recurring<br>profit/loss items attributable to equity holders of the Company | (15,187 | ) | 13,735 | (210.6 | ) | |||
| Weighted average return on net assets (%) | (1.3 | ) | 0.8 | (2.1) percentage points | ||||
| Basic (loss) / earnings per share (RMB Yuan) | (0.089 | ) | 0.056 | (258.5 | ) | |||
| Diluted (loss) / earnings per share (RMB Yuan) | (0.089 | ) | 0.056 | (258.5 | ) |
Note: the acquisition of Dalian West Pacific Petrochemical Co., Ltd. was completed in May 2019, and was accounted for as combination of entities under common control, relevant indicators of the preceding reporting period were adjusted retrospectively.
3
| Unit: RMB Million | |||
|---|---|---|---|
| Non-recurring profit/lossitems | Profit/(loss) from the<br>beginning of the year tothe end of the reporting period | ||
| Net profit on disposal of non-current assets | (227 | ) | |
| Government grants recognised in the income statement | 56 | ||
| Reversal of provisions for bad debts against receivables | 1 | ||
| Net gains on disposal of subsidiaries | 3 | ||
| Other non-operating income and expenses | (1,254 | ) | |
| Sub-total | (1,421 | ) | |
| Tax impact of non-recurring profit/loss items | 357 | ||
| Impact of non-controlling interests | 17 | ||
| Total | (1,047 | ) | |
| 2.1.3 | Differences between CAS and IFRS | ||
| --- | --- |
✓Applicable ☐Inapplicable
The consolidated net loss for the reporting period under IFRS and CAS were RMB13,349 million and RMB13,353 million, respectively, with a difference of RMB4 million; the consolidated shareholders’ equity as at the end of the reporting period under IFRS and CAS were RMB1,428,456 million and RMB1,428,725 million, respectively, with a difference of RMB269 million, which was primarily due to the revaluation for assets other than fixed assets and oil and gas properties revalued in 1999. During the restructuring in 1999, a valuation was carried out for assets and liabilities injected by China National Petroleum Corporation. On December 19, 2017, 中國石油天然氣集團公司, the Chinese name of CNPC was changed into 中國石油天然氣集團有限公司 (“CNPC” before and after the change of name). The valuation results on assets other than fixed assets and oil and gas properties were not recognised in the financial statements prepared under IFRS.
4
| 2.2 | Total Number of Shareholders, Shareholdings of Top Ten Shareholders and Shareholdings of Top Ten Holders of<br>Marketable Shares (or Shareholders of Shares Without Selling Restrictions) as at the end of the Reporting Period | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Total number of shareholders as at the end of the reporting period | 708,802 shareholders including 702,412 holders of A shares and 6,390 overseas holders of H shares (including 155 registered holders of the American Depository Shares). | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Shareholdings of the top ten shareholders | ||||||||||
| Name of shareholder | Nature ofshareholder | Percentage ofshareholding(%) | Number of sharesheld | Number ofshares withsellingrestrictions | Number of sharespledged or subject tolock-ups | |||||
| CNPC | State-owned legal person | 80.25 | 146,882,339,136 | ^(1)^ | 0 | 0 | ||||
| HKSCC Nominees Limited^(2)^ | Overseas legal person | 11.42 | 20,896,597,815 | ^(3)^ | 0 | 0 | ||||
| CNPC-CSC-17 CNPC<br>E2 Pledge and Trust Special Account | State-owned legal person | 2.09 | 3,819,980,945 | 0 | 3,819,980,945 | |||||
| CNPC-CSC-17 CNPC<br>EB Pledge and Trust Special Account | State-owned legal person | 1.12 | 2,051,488,603 | 0 | 2,051,488,603 | |||||
| China Securities Finance Corporation Limited | State-owned legal person | 0.62 | 1,139,138,704 | 0 | 0 | |||||
| China Baowu Steel Group Corporation Limited | State-owned legal person | 0.34 | 624,000,000 | 0 | 0 | |||||
| China Metallurgical Group Corporation | State-owned legal person | 0.31 | 560,000,000 | 0 | 0 | |||||
| Guoxin Investment Co., Ltd. | State-owned legal person | 0.22 | 405,473,862 | 0 | 0 | |||||
| Beijing Chengtong Financial Holding Investment Co. Ltd. | State-owned legal person | 0.20 | 374,550,263 | 0 | 0 | |||||
| Ansteel Group Corporation | State-owned legal person | 0.12 | 220,000,000 | 0 | 0 |
5
| Shareholdings of the top ten shareholders of shares without selling restrictions | |||
|---|---|---|---|
| Name of shareholders | Number of shares held | Type of shares | |
| CNPC | 146,882,339,136 | A Shares | |
| HKSCC Nominees Limited | 20,896,597,815 | H Shares | |
| CNPC-CSC-17 CNPC<br>E2 Pledge and Trust Special Account | 3,819,980,945 | A Shares | |
| CNPC-CSC-17 CNPC<br>EB Pledge and Trust Special Account | 2,051,488,603 | A Shares | |
| China Securities Finance Corporation Limited | 1,139,138,704 | A Shares | |
| China Baowu Steel Group Corporation | 624,000,000 | A Shares | |
| China Metallurgical Group Corporation | 560,000,000 | A Shares | |
| Guoxin Investment Co., Ltd. | 405,473,862 | A Shares | |
| Beijing Chengtong Financial Holding Investment Co. Ltd. | 374,550,263 | A Shares | |
| Ansteel Group Corporation | 220,000,000 | A Shares |
Statement on constitution of affiliation or parties acting in concert among shareholders above:
The Company is not aware of any affiliation among the above ten shareholders or any one of them constituting parties acting in concert under the Administrative Measures for the Takeover of Listed Companies.
| Notes: | (1) | Such figure excludes the H shares indirectly held by CNPC through Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC. |
|---|---|---|
| (2) | HKSCC Nominees Limited is a wholly-owned subsidiary of the Hong Kong Exchanges and Clearing Limited and acts as a nominee on behalf of other corporate or individual shareholders to hold the H shares of the Company. | |
| (3) | 291,518,000 H shares were indirectly held by CNPC through Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC, representing 0.16% of the total share capital of the Company. These shares were held in thename of HKSCC Nominees Limited. | |
| 2.3 | Number of Shareholders of Preferred Shares, Shareholdings of Top Ten Shareholders of Preferred Shares and<br>Shareholdings of Top Ten Shareholders of Preferred Shares without Selling Restrictions as at the end of the Reporting Period | |
| --- | --- |
☐ Applicable ✓ Inapplicable
6
| 2.4 | Business Review |
|---|
In the first quarter of 2020, the growth of the world economy and trade was seriously affected by Coronavirus Disease 2019 (the “COVID-19”), with a greater downward risk and significant increase in factors of instability and uncertainty. The economy in China was also affected significantly. The GDP of China decreased by 6.8% as compared with the same period of last year. As a result of the decline of macro-economy, supply exceeded demand in the international oil market, and the international oil prices dropped significantly, of which the average prices decreased as compared with the same period of last year. The average spot price of North Sea Brent crude oil was US$50.14 per barrel, representing a decrease of 20.6% as compared with the same period of last year. The average spot price of the West Texas Intermediate (“WTI” ) crude oil was US$45.52 per barrel, representing a decrease of 17.0% as compared with the same period of last year. While the domestic refined oil consumption decreased significantly as compared with the same period of last year, the issue of excessive supply was further aggravated. The demand in the domestic natural gas market also decreased as compared with the same period of last year.
Facing the severe and complicated economy and operation situation both abroad and domestically, the Group faithfully acted out the new concept of development, pushed ahead the quality-based development, paid more attention on strategic leading, green and low-carbon development, digital transformation and intelligent development as well as the value creation. The Group has tried its best efforts to reduce the impact of the COVID-19 by taking effective measures to prevent and control the COVID-19, resuming work and production in an orderly way, launching an campaign of improving quality and enhancing profitability, focusing on the optimization of production and operation, and devoting major efforts to intensify the control of investment, costs and expenses. In the first quarter of 2020, the average realised price for crude oil of the Group was US$54.39 per barrel, representing a decrease of 8.6% as compared with the same period of last year, among which the domestic realised price was US$56.42 per barrel, representing a decrease of 5.0% as compared with the same period of last year; the average realised price for natural gas was US$5.10 per thousand cubic feet, representing a decrease of 23.1% as compared with the same period of last year, among which the domestic realised price was US$5.80 per thousand cubic feet, representing a decrease of 11.5% as compared with the same period of last year. Affected by the sharp drop in oil and gas prices and the decrease in sales thereof, the Group achieved a revenue of RMB509,098 million under IFRS, representing a decrease of 14.4% from RMB594,815 million as compared with the same period of last year. Affected by the decline in revenue and the inventory impairment losses caused by the sharp drop in oil prices, the net loss attributable to owners of the company amounted to RMB16,230 million, representing a decrease in profit of RMB26,479 million as compared with a net profit of RMB10,249 million in the same period of last year.
In respect of exploration and production, the Group insisted on highly efficient exploration and endeavoured to increase recoverable reserves qualified for economies of scale. The Group kept reinforcing its resources foundation and gave priority to profitable development. In the first quarter of 2020, the oil and gas equivalent output of the Group was 413.9 million barrels, representing an increase of 6.1% as compared with the same period of last year, of which the domestic oil and gas equivalent output was 357.6 million barrels, representing an increase of 6.0% as compared with the same period of last year, and the overseas oil and gas equivalent output was 56.3 million barrels, representing an increase of 7.0% as compared with the same period of last year. The primary reasons for the increase in oil and gas production includes relatively higher capital expenditures for the last year and newly added oil and gas production capacity; the first quarter production and sales plan which has been scheduled at the beginning of the year, and production adjustment with a certain lag for the planning and production technology; the appropriate increase in the output of blocks with better marginal contributions at low oil prices; and the appropriate increase in the production of domestic natural gas to make up for the loss of imported natural gas and supplement the cash flow for the higher cost of importing long-term trading gas. In the first quarter of 2020, the segment of exploration and production took active steps to cope with the impact of the low oil prices and devoted major efforts to strengthen the control of costs and expenses. The unit oil and gas lifting cost decreased by 8.9% as compared with the same period of last year. The Group’s exploration and production segment achieved a profit from operations of RMB14,883 million, representing an increase of 3.9% as compared with RMB14,326 million for the same period of last year.
7
In respect of refining and chemicals, the Group adhere to the view of customer-centric and market-oriented, taking proactive steps to cope with the adverse impact of decreasing demand in the domestic market of refined products. The Group reasonably adjusted load of facilities and structure of products and optimised production and operation, while pushing forward transformation and upgrading and promoting development at lower cost. The Group endeavoured to increase the output of highly value-added chemical products, which resulted in an increase of 2.9% in the outputs of chemical commodity products as compared with the same period of last year. At the same time, the Group fully support the COVID-19 prevention and control work in China and other countries, actively organize the development and production of COVID-19 prevention materials such as melt blown cloth. In the first quarter of 2020, the Group processed an aggregate amount of 276.5 million barrels of crude oil, representing a decrease of 9.6% as compared with the same period of last year. The Group produced 25.208 million tons of gasoline, diesel and kerosene, representing a decrease of 13.8% as compared with the same period of last year. In the first quarter of 2020, the loss from operations of refining and chemicals segment amounted to RMB8,702 million, representing a decrease in profit of RMB11,772 million as compared with the profit from operations of RMB3,070 million for the same period of last year. The loss from operations in the refining business amounted to RMB6,292 million, representing a decrease in profit of RMB6,409 million as compared with the profit from operations of RMB117 million for the same period of last year, mainly due to adverse effect of decrease in sales of refined products, drop in prices and decrease in profit from inventories. The loss from operation in the chemicals business amounted to RMB2,410 million, representing a decrease in profit of RMB5,363 million as compared with the profit from operations of RMB2,953 million for the same period of last year, mainly due to the decrease in the sales and prices of chemical products.
In respect of marketing, the Group actively coped with the adverse effects of the COVID-19 situation and market downturn, optimized its product structure and inventory management, promoted refined marketing, strengthened sales network construction, and actively carried out profits-oriented, integrated and coordinated management of domestic and international markets, striving to enhance the overall value of the industry chain. In the first quarter of 2020, the Group sold 35.478 million tons of gasoline, diesel and kerosene, representing a decrease of 15.9% as compared with the same period of last year. In the first quarter of 2020, as a result of the outbreak of COVID-19 and the decrease in the demand for refined products on the domestic market, the Group recorded a loss from operations of RMB16,593 million in the marketing segment, representing a decrease in profit of RMB20,110 million as compared with the profit from operations of RMB3,517 million for the same period of last year.
In respect of natural gas and pipeline, the Group adhered to the principle of market and profitability orientation, continuously optimized the resource structure, deepened the “labelling” management of resources, and continued to do a good job in the development of certain major high-profitability markets and end-user markets. The Group intensified pipeline construction and reinforced safe operation and management, and continuously improved the interconnection of pipeline networks and its ability to coordinate the deployment of oil and gas resources. In the first quarter of 2020, the domestic sales volume of natural gas was 47.706 billion cubic metres, representing a decrease of 3.7% as compared with same period of last year. As a result of the fall in both sales and prices of the natural gas, the profit from operations of the natural gas and pipeline segment amounted to RMB11,359 million, representing a decrease of 9.7% as compared with RMB12,582 million for the same period of last year. Among them, the net loss incurred from sales of imported gas and LNG in the natural gas and pipeline segment amounted to RMB3,933 million, representing an increase in net loss of RMB644 million from the net loss of RMB3,289 million for the same period of last year, mainly due to the early implementation of the off-season price policy and reduced natural gas sales prices. The Group will continue to take effective measures to control losses.
8
Summary of Key Operating Data for the First Quarter of 2020
| Operating Data | Unit | For the threemonths endedMarch 31 | Changes over thesame period of thepreceding year (%) | |||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||||
| Crude oil output | Million barrels | 232.7 | 223.4 | 4.2 | ||||
| of which: domestic | Million barrels | 186.9 | 182.7 | 2.3 | ||||
| overseas | Million barrels | 45.8 | 40.7 | 12.5 | ||||
| Marketable natural gas output | Billion cubic feet | 1,086.9 | 999.9 | 8.7 | ||||
| of which: domestic | Billion cubic feet | 1,023.8 | 928.8 | 10.2 | ||||
| overseas | Billion cubic feet | 63.1 | 71.1 | (11.3 | ) | |||
| Oil and natural gas equivalent output | Million barrels | 413.9 | 390.1 | 6.1 | ||||
| of which: domestic | Million barrels | 357.6 | 337.5 | 6.0 | ||||
| overseas | Million barrels | 56.3 | 52.6 | 7.0 | ||||
| Processed crude oil | Million barrels | 276.5 | 305.8 | (9.6 | ) | |||
| Gasoline, kerosene and diesel output | Thousand tons | 25,208 | 29,252 | (13.8 | ) | |||
| of which: Gasoline | Thousand tons | 10,967 | 12,602 | (13.0 | ) | |||
| Kerosene | Thousand tons | 2,394 | 3,080 | (22.3 | ) | |||
| Diesel | Thousand tons | 11,847 | 13,570 | (12.7 | ) | |||
| Total sales volume of gasoline, kerosene and diesel | Thousand tons | 35,478 | 42,179 | (15.9 | ) | |||
| of which: Gasoline | Thousand tons | 14,799 | 17,762 | (16.7 | ) | |||
| Kerosene | Thousand tons | 3,694 | 4,666 | (20.8 | ) | |||
| Diesel | Thousand tons | 16,985 | 19,751 | (14.0 | ) | |||
| Output of key chemical products | ||||||||
| Ethylene | Thousand tons | 1,539 | 1,560 | (1.3 | ) | |||
| Synthetic resin | Thousand tons | 2,473 | 2,508 | (1.4 | ) | |||
| Synthetic fiber raw materials and polymers | Thousand tons | 342 | 372 | (8.1 | ) | |||
| Synthetic rubber | Thousand tons | 246 | 243 | 1.2 | ||||
| Urea | Thousand tons | 261 | — | — |
Note: Figures have been converted at the rate of 1 ton of crude oil = 7.389 barrels and 1 cubic metre of natural gas =35.315 cubic feet.
9
In the latter three quarters of 2020, due to factors such as the downturn of world economy, it is expected that the international crude oil market will still be oversupplied, and the international oil prices is expected to fluctuate at a low level. Faced with an unprecedented and severe situation, the Group will highlight its key projects while constraining on its non-major projects, insist on cutting cost as well as enhancing profitability, and adhere to the bottom line thinking of adjusting expenses based on income. It will also adhere to a long-term positive response, carry out in-depth special actions to improve quality and enhance profitability, and adjust the annual business development and investment plan in a timely and dynamic manner according to changes in oil prices, optimizing the investment structure and improving the return on investment, strengthening the overall coordination of the value chain and the industrial chain, implementing financial operation to create efficiency, strictly controlling management costs and expenses, strengthening the performance-linked examination, exerting the driving force of technological innovation, and deepening the market-oriented reform to ensure the stable and orderly functioning of production and operation, as well as the healthy and sustainable financial situation, striving to create value for shareholders.
10
| 3 | Significant Events |
|---|---|
| 3.1 | Significant changes in key accounting items and financial indicators under CAS and explanation of such changes<br> |
| --- | --- |
✓Applicable ☐Inapplicable
Unit: RMB Million
| Items | March 31,2020 | December 31,2019 | Changes(%) | Key explanation of the changes | ||||
|---|---|---|---|---|---|---|---|---|
| Advances to suppliers | 29,202 | 17,038 | 71.4 | Mainly due to the increase in prepayments such as those for materials, project funds | ||||
| Taxes payable | 43,323 | 67,382 | (35.7 | ) | Mainly due to paying the unpaid taxes at the end of last year | |||
| Other payables | 47,888 | 34,699 | 38.0 | Mainly due to the increase in other payables recognized based on volume of business | ||||
| Current portion of non-current liabilities | 143,164 | 92,879 | 54.1 | Mainly due to the increase of long-term borrowings and debentures payable due within one year | ||||
| Other current liabilities | 69,576 | 30,048 | 131.5 | Mainly due to the increase of ultra short term financing bond |
11
| Items | For the three months endedMarch 31 | Changes(%) | Key explanation of the changes | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||||||
| Investment income | (89 | ) | 2,478 | (103.6 | ) | Mainly due to the decrease in profits of associated companies and joint ventures as compared with the corresponding period of last year | ||||
| Including: Income from investment in<br><br><br>associates and joint ventures | (221 | ) | 2,341 | (109.4 | ) | |||||
| Credit losses | (121 | ) | (92 | ) | 31.5 | Mainly due to increase of the provision for bad debts of accounts receivables | ||||
| Asset impairment losses | (7,848 | ) | 6 | (130,900.0 | ) | Mainly due to the increase in provision for inventory impairment | ||||
| Gains on asset disposal | — | 18 | (100.0 | ) | Mainly due to the decrease in gains on disposal of non-current assets | |||||
| Non-operating income | 310 | 550 | (43.6 | ) | Mainly due to the decrease in government grants | |||||
| Non-operating expenses | (1,733 | ) | (5,252 | ) | (67.0 | ) | Mainly due to the decrease in the loss on retirement of assets | |||
| Operating (loss) / profit | (9,252 | ) | 29,270 | (131.6 | ) | Mainly due to the decrease of sales volume and prices of some oil and gas products and the inventory impairment | ||||
| (Loss) / profit before taxation | (10,675 | ) | 24,568 | (143.5 | ) | |||||
| Taxation | (2,678 | ) | (8,539 | ) | (68.6 | ) | Mainly due to the decrease of profits during the current period | |||
| Net (loss) / profit | (13,353 | ) | 16,029 | (183.3 | ) | |||||
| Net (loss) / profit from continuous operation | (13,353 | ) | 16,029 | (183.3 | ) | |||||
| Non-controlling interests | 2,881 | 5,784 | (50.2 | ) | ||||||
| Net (loss) / profit attributable to owners of the Company | (16,234 | ) | 10,245 | (258.5 | ) | |||||
| Basic (loss) / earnings per share (RMB Yuan) | (0.089 | ) | 0.056 | (258.5 | ) |
12
| Items | For the three months endedMarch 31 | Changes(%) | Key explanation of the changes | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||||||
| Diluted (loss) / earnings per share (RMB Yuan) | (0.089 | ) | 0.056 | (258.5 | ) | Mainly due to the decrease of profits during the current period | ||||
| Other comprehensive income, net of tax | (3,331 | ) | (784 | ) | 324.9 | Mainly due to the change of translation differences arising from translation of foreign currency financial statements of overseas subsidiaries as a result of the fluctuation of exchange rates | ||||
| Other comprehensive income attributable to equity holders of the Company, net of tax | (2,988 | ) | 100 | (3,088.0 | ) | |||||
| Changes in fair value of investments in other equity instruments | (48 | ) | 35 | (237.1 | ) | Mainly due to the decrease in the fair value of investments in other equity instruments for this period | ||||
| Share of other comprehensive income of equity-accounted investee | (117 | ) | 83 | (241.0 | ) | Mainly due to the decrease of share of other comprehensive income of equity-accounted investee for this period | ||||
| Translation differences arising from translation of foreign currency financial<br>statements | (2,823 | ) | (18 | ) | 15,583.3 | Mainly due to the change of translation differences arising from translation of foreign currency financial statements of overseas subsidiaries as a result of the fluctuation of exchange rates | ||||
| Other comprehensive income attributable to<br>non-controlling interests, net of tax | (343 | ) | (884 | ) | (61.2 | ) | ||||
| Total comprehensive income attributable to equity holders of the Company | (19,222 | ) | 10,345 | (285.8 | ) | Mainly due to the decrease in profit and the change of translation differences arising from translation of foreign currency financial statements of overseas subsidiaries as a result of the fluctuation of exchange rates | ||||
| Net cash flows (used for) / generated from operating activities | (18,096 | ) | 61,765 | (129.3 | ) | Mainly due to the decrease in cash received from sales of goods and rendering of services, and changes in working capitals | ||||
| Net cash flows from financing activities | 58,121 | 28,279 | 105.5 | Mainly due to the increase of net borrowings |
13
| 3.2 | Developments and impacts of significant events as well as the analysis of and explanation for the solutions<br> |
|---|
☐Applicable ✓Inapplicable
| 3.3 | Status of fulfilment of undertaking given by the Company, shareholders and ultimate controller<br> |
|---|
✓Applicable ☐Inapplicable
During the reporting period, the undertaking given by CNPC, the controlling shareholder of the Company, and the fulfilment thereof were consistent with the information disclosed in the section headed “Significant Events” of the 2019 Annual Report of the Company. There have been no events affecting the performance of these undertakings.
| 3.4 | Caution and explanation as to the anticipated accumulated losses or significant changes over the same period of<br>the preceding year |
|---|
✓Applicable ☐Inapplicable
Due to the spread of COVID-19 around the world, the downturn of global economy, the oversupply on the international oil and gas market and other factors, the oil and gas prices in the first quarter of 2020 decreased significantly as compared with the same period of last year. It is expected that the prices will still fluctuate at low level in the second quarter of 2020. The net profit attributable to owners of the Company in the first half of 2020 will fall sharply as compared with the same period of last year.
The above data are preliminary estimates only, and the specific and accurate financial data shall be subject to the Interim Report of 2020 to be officially disclosed by the Company.
| 3.5 | Securities investment |
|---|
☐Applicable ✓Inapplicable
| 3.6 | Other significant events |
|---|
✓Applicable ☐Inapplicable
| 3.6.1 | The impact of COVID-19 |
|---|
January 2020 witnessed an outbreak of the COVID-19, which severely disrupted the global economy and China is set to take its toll on the Chinese economy. The Group was also significantly affected by the COVID-19, such that there has been a drastic downfall in the demand for refined oil and natural gas in the market, while the prices of crude and refined oil and natural gas have been significantly decreased, and the operation and management of oil and gas industrial chain became more complicated and difficult. The Group actively set up an anti-COVID-19 steering team to arrange in time for various steps to be taken in response, safeguarding the health of its employees in addition to safe and well-ordered production and operation, implementing special action on improving quality and enhancing profitability, controlling the capital expenditures and costs, optimizing debt settlement structure, actively promoting sales and improving profitability, and accelerating the development of domestic natural gas business, thus trying to minimize the loss arising therefrom and ensure sustainable business development in the long run.
| 3.6.2 | The price of international crude oil fell sharply |
|---|
Since 2020, due to the impact of various factors, international crude oil prices have fallen sharply. As at the end of the first quarter, the aggregate decreases in spot prices of both North Sea Brent crude oil and WTI crude oil have reached 73.25% and 66.53%, respectively. The decline in international crude oil prices has adversely affected the Group’s sales revenue and profits, the Group actively takes measures to deal with the risks of crude oil price fluctuations, and strives to maintain stable and healthy development of production and operations.
14
| 3.6.3 | Short term adjustment of natural gas price |
|---|
On February 22, 2020, NDRC issued the Notice on Interim Reduction of Gas Cost for Non-resident Use to Support Resumption of Work and Production (Fa Gai Jia Ge [2020] No. 257) (《關於階段性降低非居民用氣成本支持企業復工複產的通知》（發改價格〔2020〕257號）) (the “Notice”), pursuant to which, to act on the government’s guideline in respect of proper coordination of anti-COVID-19 efforts as well as economic and social development, the cost of non-resident use of gas will be lowered in the short term. Starting from the date thereof to June 30, 2020, off-season price policies shall be implemented in advance for the city gate prices of natural gas for non-resident use, greater price discounts shall be provided to industries, such as chemical fertilizers, which are deeply affected by the COVID-19, and the end-user prices of natural gas should reduce timely. The sales revenue and profits of natural gas sales of our Group were affected to a certain extent; however, we will go on optimizing our production and operation and pushing ahead sustainable and high-quality business development.
15
By Order of the Board of Directors
PetroChina Company Limited
Dai Houliang
Chairman
Beijing, the PRC
April 29, 2020
As at the date ofthis announcement, the Board of Directors of the Company comprises Mr. Dai Houliang as the Chairman; Mr. Li Fanrong as the Vice Chairman and non-executive Director; Mr. Liu Yuezhen, Mr. LvBo and Mr. Jiao Fangzheng as non-executive Directors; Mr. Duan Liangwei as executive Director; and Mr. Lin Boqiang, Mr. Zhang Biyi, Ms. Elsie LeungOi-sie, Mr. Tokuchi Tatsuhito and Mr. Simon Henry as independent non-executive Directors.
This announcement is published in English and Chinese. In the event of any inconsistency between the two versions, the Chinese version shall prevail.
16
Appendix
A. Financial statements for the first quarter of 2020 prepared in accordance with CAS
| 1. | Consolidated Balance Sheet | |||
|---|---|---|---|---|
| ASSETS | March 31, 2020 | December 31, 2019 | ||
| --- | --- | --- | --- | --- |
| RMB million | RMB million | |||
| Current assets | ||||
| Cash at bank and on hand | 98,722 | 110,665 | ||
| Accounts receivable | 80,089 | 64,184 | ||
| Receivables financing | 5,430 | 7,016 | ||
| Advances to suppliers | 29,202 | 17,038 | ||
| Other receivables | 23,298 | 21,199 | ||
| Inventories | 185,870 | 181,921 | ||
| Other current assets | 64,803 | 64,890 | ||
| Total current assets | 487,414 | 466,913 | ||
| Non-current assets | ||||
| Investments in other equity instruments | 866 | 930 | ||
| Long-term equity investments | 102,539 | 102,165 | ||
| Fixed assets | 687,641 | 703,414 | ||
| Oil and gas properties | 812,811 | 831,814 | ||
| Construction in progress | 250,059 | 247,996 | ||
| Right-of-use<br>assets | 187,573 | 189,632 | ||
| Intangible assets | 84,275 | 84,832 | ||
| Goodwill | 42,930 | 42,808 | ||
| Long-term prepaid expenses | 10,129 | 10,258 | ||
| Deferred tax assets | 28,901 | 24,259 | ||
| Other non-current assets | 32,165 | 28,169 | ||
| Total non-current assets | 2,239,889 | 2,266,277 | ||
| TOTAL ASSETS | 2,727,303 | 2,733,190 | ||
| Chairman<br><br><br>Dai Houliang | Director and President<br><br><br>Duan Liangwei | Chief Financial Officer<br><br><br>Chai Shouping | ||
| --- | --- | --- |
17
- Consolidated Balance Sheet (Continued)
| LIABILITIES AND SHAREHOLDERS’ EQUITY | March 31, 2020 | December 31, 2019 | ||||
|---|---|---|---|---|---|---|
| RMB million | RMB million | |||||
| Current liabilities | ||||||
| Short-term borrowings | 88,402 | 70,497 | ||||
| Notes payable | 10,400 | 13,153 | ||||
| Accounts payable | 213,218 | 260,102 | ||||
| Contracts liabilities | 84,993 | 82,490 | ||||
| Employee compensation payable | 11,000 | 10,169 | ||||
| Taxes payable | 43,323 | 67,382 | ||||
| Other payables | 47,888 | 34,699 | ||||
| Current portion of non-current liabilities | 143,164 | 92,879 | ||||
| Other current liabilities | 69,576 | 30,048 | ||||
| Total current liabilities | 711,964 | 661,419 | ||||
| Non-current liabilities | ||||||
| Long-term borrowings | 162,004 | 174,411 | ||||
| Debentures payable | 85,541 | 116,471 | ||||
| Lease liabilities | 165,373 | 164,143 | ||||
| Provisions | 140,003 | 137,935 | ||||
| Deferred tax liabilities | 21,255 | 21,418 | ||||
| Other non-current liabilities | 12,438 | 12,815 | ||||
| Total non-current liabilities | 586,614 | 627,193 | ||||
| Total liabilities | 1,298,578 | 1,288,612 | ||||
| Shareholders’ equity | ||||||
| Share capital | 183,021 | 183,021 | ||||
| Capital surplus | 127,364 | 127,314 | ||||
| Special reserve | 13,671 | 12,443 | ||||
| Other comprehensive income | (30,744 | ) | (27,756 | ) | ||
| Surplus reserves | 197,282 | 197,282 | ||||
| Undistributed profits | 721,890 | 738,124 | ||||
| Equity attributable to equity holders of the Company | 1,212,484 | 1,230,428 | ||||
| Non-controlling interests | 216,241 | 214,150 | ||||
| Total shareholders’ equity | 1,428,725 | 1,444,578 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,727,303 | 2,733,190 | ||||
| Chairman | Director and President | Chief Financial Officer | ||||
| --- | --- | --- | ||||
| Dai Houliang | Duan Liangwei | Chai Shouping |
18
- Company Balance Sheet
| ASSETS | March 31, 2020 | December 31, 2019 | ||
|---|---|---|---|---|
| RMB million | RMB million | |||
| Current assets | ||||
| Cash at bank and on hand | 11,478 | 6,636 | ||
| Accounts receivable | 11,735 | 10,072 | ||
| Receivables financing | 1,696 | 2,538 | ||
| Advances to suppliers | 16,440 | 6,980 | ||
| Other receivables | 11,082 | 8,997 | ||
| Inventories | 115,146 | 117,757 | ||
| Other current assets | 47,404 | 47,565 | ||
| Total current assets | 214,981 | 200,545 | ||
| Non-current assets | ||||
| Investments in other equity instruments | 378 | 437 | ||
| Long-term equity investments | 405,744 | 402,584 | ||
| Fixed assets | 337,525 | 347,649 | ||
| Oil and gas properties | 588,788 | 599,230 | ||
| Construction in progress | 156,730 | 158,823 | ||
| Right-of-use<br>assets | 105,936 | 107,852 | ||
| Intangible assets | 64,062 | 64,530 | ||
| Long-term prepaid expenses | 8,359 | 8,198 | ||
| Deferred tax assets | 18,320 | 14,725 | ||
| Other non-current assets | 11,881 | 10,571 | ||
| Total non-current assets | 1,697,723 | 1,714,599 | ||
| TOTAL ASSETS | 1,912,704 | 1,915,144 | ||
| Chairman | Director and President | Chief Financial Officer | ||
| --- | --- | --- | ||
| Dai Houliang | Duan Liangwei | Chai Shouping |
19
- Company Balance Sheet (Continued)
| LIABILITIES AND<br><br><br>SHAREHOLDERS’ EQUITY | March 31, 2020 | December 31, 2019 | ||
|---|---|---|---|---|
| RMB million | RMB million | |||
| Current liabilities | ||||
| Short-term borrowings | 72,910 | 66,027 | ||
| Notes payable | 9,625 | 12,046 | ||
| Accounts payable | 85,335 | 102,780 | ||
| Contracts liabilities | 56,304 | 54,014 | ||
| Employee compensation payable | 8,535 | 7,931 | ||
| Taxes payable | 23,957 | 42,779 | ||
| Other payables | 62,612 | 60,291 | ||
| Current portion of non-current liabilities | 81,163 | 36,799 | ||
| Other current liabilities | 65,707 | 25,882 | ||
| Total current liabilities | 466,148 | 408,549 | ||
| Non-current liabilities | ||||
| Long-term borrowings | 96,253 | 110,717 | ||
| Debentures payable | 82,000 | 113,000 | ||
| Lease liabilities | 86,520 | 85,449 | ||
| Provisions | 97,413 | 95,643 | ||
| Other non-current liabilities | 6,377 | 6,511 | ||
| Total non-current liabilities | 368,563 | 411,320 | ||
| Total liabilities | 834,711 | 819,869 | ||
| Shareholders’ equity | ||||
| Share capital | 183,021 | 183,021 | ||
| Capital surplus | 127,845 | 127,845 | ||
| Special reserve | 7,384 | 6,513 | ||
| Other comprehensive income | 822 | 979 | ||
| Surplus reserves | 186,190 | 186,190 | ||
| Undistributed profits | 572,731 | 590,727 | ||
| Total shareholders’ equity | 1,077,993 | 1,095,275 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,912,704 | 1,915,144 | ||
| Chairman | Director and President | Chief Financial Officer | ||
| --- | --- | --- | ||
| Dai Houliang | Duan Liangwei | Chai Shouping |
20
- Consolidated Income Statement
| Three months ended March 31 | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019^Note^ | |||||
| Items | RMB million | RMB million | ||||
| Operating income | 509,098 | 594,815 | ||||
| Less: Cost of sales | (425,541 | ) | (472,341 | ) | ||
| Taxes and surcharges | (45,325 | ) | (55,876 | ) | ||
| Selling expenses | (16,157 | ) | (16,374 | ) | ||
| General and administrative expenses | (13,800 | ) | (14,791 | ) | ||
| Research and development expenses | (3,975 | ) | (3,582 | ) | ||
| Finance expenses | (7,288 | ) | (7,513 | ) | ||
| Including: Interest expenses | 7,830 | 7,690 | ||||
| Interest<br>income | 790 | 799 | ||||
| Add: Other income | 1,794 | 2,522 | ||||
| Investment income | (89 | ) | 2,478 | |||
| Including: Income from investment in associates and joint ventures | (221 | ) | 2,341 | |||
| Credit losses | (121 | ) | (92 | ) | ||
| Asset impairment losses | (7,848 | ) | 6 | |||
| Gains on asset disposal | — | 18 | ||||
| Operating (loss) / profit | (9,252 | ) | 29,270 | |||
| Add: Non-operating income | 310 | 550 | ||||
| Less: Non-operating expenses | (1,733 | ) | (5,252 | ) | ||
| (Loss) / profit before taxation | (10,675 | ) | 24,568 | |||
| Less: Taxation | (2,678 | ) | (8,539 | ) | ||
| Net (loss) / profit | (13,353 | ) | 16,029 | |||
| Classified by continuity of operations: | ||||||
| Net (loss) / profit from continuous operation | (13,353 | ) | 16,029 | |||
| Net profit from discontinued operation | — | — | ||||
| Classified by ownership: | ||||||
| Shareholders of the Company | (16,234 | ) | 10,245 | |||
| Non-controlling interests | 2,881 | 5,784 | ||||
| (Loss) / earnings per share | ||||||
| Basic (loss) / earnings per share (RMB Yuan) | (0.089 | ) | 0.056 | |||
| Diluted (loss) / earnings per share (RMB Yuan) | (0.089 | ) | 0.056 | |||
| Other comprehensive income, net of tax | (3,331 | ) | (784 | ) | ||
| Other comprehensive income (net of tax) attributable to equity holders of the Company | (2,988 | ) | 100 | |||
| (1) Items that will not be reclassified to profit or loss: | ||||||
| Changes in fair value of investments in other equity instruments | (48 | ) | 35 | |||
| (2) Items that may be reclassified to profit or loss: | ||||||
| Other comprehensive income recognised under equity method | (117 | ) | 83 | |||
| Translation differences arising from translation of foreign currency financial statements | (2,823 | ) | (18 | ) | ||
| Other comprehensive income (net of tax) attributable to<br>non-controlling interests | (343 | ) | (884 | ) | ||
| Total comprehensive income | (16,684 | ) | 15,245 | |||
| Attributable to: | ||||||
| Equity holders of the Company | (19,222 | ) | 10,345 | |||
| Non-controlling interests | 2,538 | 4,900 | ||||
| Note: | The comparative amounts in the financial statements are presented as if Dalian West Pacific had been<br>consolidated from the beginning of the earliest reporting period presented. | |||||
| --- | --- | |||||
| Chairman | Director and President | Chief Financial Officer | ||||
| --- | --- | --- | ||||
| Dai Houliang | Duan Liangwei | Chai Shouping |
21
- Income Statement
| Three months ended March 31 | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| Items | RMB million | RMB million | ||||
| Operating income | 274,953 | 347,061 | ||||
| Less: Cost of sales | (233,019 | ) | (269,272 | ) | ||
| Taxes and surcharges | (35,121 | ) | (43,194 | ) | ||
| Selling expenses | (10,943 | ) | (11,234 | ) | ||
| General and administrative expenses | (9,043 | ) | (11,509 | ) | ||
| Research and development expenses | (3,596 | ) | (1,761 | ) | ||
| Finance expenses | (5,703 | ) | (5,303 | ) | ||
| Including: Interest expenses | 5,702 | 5,286 | ||||
| Interest income | 68 | 228 | ||||
| Add: Other income | 1,463 | 2,227 | ||||
| Investment income | 2,766 | 681 | ||||
| Including: Income from investment in associates and joint ventures | 741 | 930 | ||||
| Credit losses | (108 | ) | (73 | ) | ||
| Asset impairment losses | (1,963 | ) | (2 | ) | ||
| Gains on asset disposal | 4 | 20 | ||||
| Operating (loss) / profit | (20,310 | ) | 7,641 | |||
| Add: Non-operating income | 242 | 389 | ||||
| Less: Non-operating expenses | (1,505 | ) | (1,078 | ) | ||
| (Loss) / profit before taxation | (21,573 | ) | 6,952 | |||
| Less: Taxation | 3,577 | (1,682 | ) | |||
| Net (loss)/profit | (17,996 | ) | 5,270 | |||
| Classified by continuity of operations: | ||||||
| Net (loss) / profit from continuous operation | (17,996 | ) | 5,270 | |||
| Net profit from discontinued operation | — | — | ||||
| (Loss) / earnings per share | ||||||
| Basic (loss) / earnings per share (RMB Yuan) | (0.098 | ) | 0.029 | |||
| Diluted (loss) / earnings per share (RMB Yuan) | (0.098 | ) | 0.029 | |||
| Other comprehensive income, net of tax | (157 | ) | 125 | |||
| (1) Items that will not be reclassified to profit or loss: | ||||||
| Changes in fair value of investments in other equity instruments | (45 | ) | 45 | |||
| (2) Items that may be reclassified to profit or loss: | ||||||
| Other comprehensive income recognised under equity method | (112 | ) | 80 | |||
| Total comprehensive income | (18,153 | ) | 5,395 | |||
| Chairman | Director and<br>President | Chief Financial<br>Officer | ||||
| --- | --- | --- | ||||
| Dai Houliang | Duan Liangwei | Chai Shouping |
22
- Consolidated Cash Flow Statement
| Three months ended March 31 | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019^Note^ | |||||
| Items | RMB million | RMB million | ||||
| Cash flows from operating activities | ||||||
| Cash received from sales of goods and rendering of services | 561,517 | 671,479 | ||||
| Cash received relating to other operating activities | 1,867 | 643 | ||||
| Sub-total of cash inflows | 563,384 | 672,122 | ||||
| Cash paid for goods and services | (444,079 | ) | (462,092 | ) | ||
| Cash paid to and on behalf of employees | (31,407 | ) | (30,623 | ) | ||
| Payments of various taxes | (90,302 | ) | (109,531 | ) | ||
| Cash paid relating to other operating activities | (15,692 | ) | (8,111 | ) | ||
| Sub-total of cash outflows | (581,480 | ) | (610,357 | ) | ||
| Net cash flows (used for) / generated from operating activities | (18,096 | ) | 61,765 | |||
| Cash flows from investing activities | ||||||
| Cash received from disposal of investments | 83 | 1,629 | ||||
| Cash received from returns on investments | 1,108 | 782 | ||||
| Net cash received from disposal of fixed assets, oil and gas properties, intangible assets and<br>other long-term assets | 24 | 53 | ||||
| Sub-total of cash inflows | 1,215 | 2,464 | ||||
| Cash paid to acquire fixed assets, oil and gas properties, intangible assets and other long-term<br>assets | (49,872 | ) | (60,942 | ) | ||
| Cash paid to acquire investments | (1,344 | ) | (245 | ) | ||
| Sub-total of cash outflows | (51,216 | ) | (61,187 | ) | ||
| Net cash flows used for investing activities | (50,001 | ) | (58,723 | ) | ||
| Chairman | Director and<br>President | Chief Financial<br>Officer | ||||
| --- | --- | --- | ||||
| Dai Houliang | Duan Liangwei | Chai Shouping |
23
- Consolidated Cash Flow Statement (Continued)
| Three months ended March 31 | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019^Note^ | |||||
| Items | RMB million | RMB million | ||||
| Cash flows from financing activities | ||||||
| Cash received from capital contributions | 59 | 47 | ||||
| Including: Cash received from non-controlling<br>interests’ capital contributions to subsidiaries | 59 | 47 | ||||
| Cash received from borrowings | 284,883 | 242,365 | ||||
| Sub-total of cash inflows | 284,942 | 242,412 | ||||
| Cash repayments of borrowings | (216,070 | ) | (200,721 | ) | ||
| Cash payments for interest expenses and distribution of dividends or profits | (7,363 | ) | (6,134 | ) | ||
| Including: Subsidiaries’ cash payments for distribution of dividends or profits to non-controlling interests | (842 | ) | (472 | ) | ||
| Capital reduction of subsidiaries | — | (10 | ) | |||
| Cash payments relating to other financing activities | (3,388 | ) | (7,268 | ) | ||
| Sub-total of cash outflows | (226,821 | ) | (214,133 | ) | ||
| Net cash flows from financing activities | 58,121 | 28,279 | ||||
| Effect of foreign exchange rate changes on cash and cash equivalents | 872 | (1,006 | ) | |||
| Net (decrease) / increase in cash and cash equivalents | (9,104 | ) | 30,315 | |||
| Add: Cash and cash equivalents at beginning of the period | 86,409 | 85,954 | ||||
| Cash and cash equivalents at end of the period | 77,305 | 116,269 | ||||
| Note: | The comparative amounts in the financial statements are presented as if Dalian West Pacific had been<br>consolidated from the beginning of the earliest reporting period presented. | |||||
| --- | --- | |||||
| Chairman | Director and<br>President | Chief Financial<br>Officer | ||||
| --- | --- | --- | ||||
| Dai Houliang | Duan Liangwei | Chai Shouping |
24
- Company Cash Flow Statement
| Three months ended March 31 | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| Items | RMB million | RMB million | ||||
| Cash flows from operating activities | ||||||
| Cash received from sales of goods and rendering of services | 308,755 | 401,019 | ||||
| Cash received relating to other operating activities | 1,726 | 15,805 | ||||
| Sub-total of cash inflows | 310,481 | 416,824 | ||||
| Cash paid for goods and services | (207,655 | ) | (273,281 | ) | ||
| Cash paid to and on behalf of employees | (22,342 | ) | (13,079 | ) | ||
| Payments of various taxes | (65,330 | ) | (74,377 | ) | ||
| Cash paid relating to other operating activities | (14,121 | ) | (5,495 | ) | ||
| Sub-total of cash outflows | (309,448 | ) | (366,232 | ) | ||
| Net cash flows from operating activities | 1,033 | 50,592 | ||||
| Cash flows from investing activities | ||||||
| Cash received from disposal of investments | 2,511 | 2,575 | ||||
| Cash received from returns on investments | 1,472 | 289 | ||||
| Net cash received from disposal of fixed assets, oil and gas properties, intangible assets and<br>other long-term assets | 4 | 49 | ||||
| Sub-total of cash inflows | 3,987 | 2,913 | ||||
| Cash paid to acquire fixed assets, oil and gas properties, intangible assets and other long-term<br>assets | (31,654 | ) | (42,342 | ) | ||
| Cash paid to acquire investments | (7,460 | ) | (6,990 | ) | ||
| Sub-total of cash outflows | (39,114 | ) | (49,332 | ) | ||
| Net cash flows used for investing activities | (35,127 | ) | (46,419 | ) | ||
| Chairman | Director and<br>President | Chief Financial<br>Officer | ||||
| --- | --- | --- | ||||
| Dai Houliang | Duan Liangwei | Chai Shouping |
25
- Company Cash Flow Statement (Continued)
| Three months ended March 31 | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| Items | RMB million | RMB million | ||||
| Cash flows from financing activities | ||||||
| Cash received from borrowings | 110,734 | 108,481 | ||||
| Sub-total of cash inflows | 110,734 | 108,481 | ||||
| Cash repayments of borrowings | (63,317 | ) | (88,724 | ) | ||
| Cash payments for interest expenses and distribution of dividends or profits | (5,217 | ) | (4,150 | ) | ||
| Cash payments relating to other financing activities | (3,264 | ) | (2,017 | ) | ||
| Sub-total of cash outflows | (71,798 | ) | (94,891 | ) | ||
| Net cash flows from financing activities | 38,936 | 13,590 | ||||
| Effect of foreign exchange rate changes on cash and cash equivalents | — | — | ||||
| Net increase in cash and cash equivalents | 4,842 | 17,763 | ||||
| Add: Cash and cash equivalents at beginning of the period | 4,636 | 13,109 | ||||
| Cash and cash equivalents at end of the period | 9,478 | 30,872 | ||||
| Chairman<br>Dai Houliang | Director and President<br>Duan Liangwei | Chief Financial Officer<br>Chai Shouping | ||||
| --- | --- | --- |
26
B. Financial statements for the first quarter of 2020 prepared in accordance with IFRS
- Consolidated Statement of Comprehensive Income
| Three months ended March 31 | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019^Note^ | |||||
| RMB million | RMB million | |||||
| REVENUE | 509,098 | 594,815 | ||||
| OPERATING EXPENSES | ||||||
| Purchases, services and other | (354,585 | ) | (396,873 | ) | ||
| Employee compensation costs | (31,779 | ) | (32,852 | ) | ||
| Exploration expenses, including exploratory dry holes | (7,543 | ) | (6,202 | ) | ||
| Depreciation, depletion and amortisation | (57,825 | ) | (55,091 | ) | ||
| Selling, general and administrative expenses | (15,778 | ) | (16,143 | ) | ||
| Taxes other than income taxes | (45,476 | ) | (56,105 | ) | ||
| Other income / (expense) net | 509 | (2,041 | ) | |||
| TOTAL OPERATING EXPENSES | (512,477 | ) | (565,307 | ) | ||
| (LOSS) / PROFIT FROM OPERATIONS | (3,379 | ) | 29,508 | |||
| FINANCE COSTS | ||||||
| Exchange gain | 3,854 | 1,999 | ||||
| Exchange loss | (3,885 | ) | (2,385 | ) | ||
| Interest income | 790 | 799 | ||||
| Interest expense | (7,830 | ) | (7,690 | ) | ||
| TOTAL NET FINANCE COSTS | (7,071 | ) | (7,277 | ) | ||
| SHARE OF (LOSS) / PROFIT OF ASSOCIATES AND JOINT VENTURES | (221 | ) | 2,341 | |||
| (LOSS) / PROFIT BEFORE INCOME TAX EXPENSE | (10,671 | ) | 24,572 | |||
| INCOME TAX EXPENSE | (2,678 | ) | (8,539 | ) | ||
| (LOSS) / PROFIT FOR THE PERIOD | (13,349 | ) | 16,033 | |||
| OTHER COMPREHENSIVE INCOME | ||||||
| Item that will not be reclassified to profit or loss | ||||||
| Fair value changes in equity investment measured at fair value through other comprehensive<br>income | (30 | ) | 96 | |||
| Items that are or may be reclassified subsequently to profit or loss | ||||||
| Currency translation differences | (3,184 | ) | (963 | ) | ||
| Share of the other comprehensive income of associates and joint ventures accounted for using the<br>equity method | (117 | ) | 83 | |||
| OTHER COMPREHENSIVE INCOME, NET OF TAX | (3,331 | ) | (784 | ) | ||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | (16,680 | ) | 15,249 | |||
| (LOSS) / PROFIT FOR THE PERIOD ATTRIBUTABLE TO: | ||||||
| Owners of the Company | (16,230 | ) | 10,249 | |||
| Non-controlling interests | 2,881 | 5,784 | ||||
| (13,349 | ) | 16,033 | ||||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: | ||||||
| Owners of the Company | (19,218 | ) | 10,349 | |||
| Non-controlling interests | 2,538 | 4,900 | ||||
| (16,680 | ) | 15,249 | ||||
| BASIC AND DILUTED (LOSS) / EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY (RMBYUAN) | (0.089 | ) | 0.056 | |||
| Note: | The comparative amounts in the financial statements are presented as if Dalian West Pacific had been<br>consolidated from the beginning of the earliest reporting period presented. | |||||
| --- | --- |
27
- Consolidated Statement of Financial Position
| March 31, 2020 | December 31, 2019 | |||||
|---|---|---|---|---|---|---|
| RMB million | RMB million | |||||
| NON-CURRENT ASSETS | ||||||
| Property, plant and equipment | 1,750,512 | 1,783,224 | ||||
| Investments in associates and joint ventures | 102,447 | 102,073 | ||||
| Equity investments measured at fair value through other comprehensive income | 858 | 922 | ||||
| Right-of-use<br>assets | 252,437 | 254,736 | ||||
| Intangible and other non-current assets | 101,409 | 100,663 | ||||
| Deferred tax assets | 28,901 | 24,259 | ||||
| Time deposits with maturities over one year | 3,050 | 120 | ||||
| TOTAL NON-CURRENT ASSETS | 2,239,614 | 2,265,997 | ||||
| CURRENT ASSETS | ||||||
| Inventories | 185,870 | 181,921 | ||||
| Accounts receivable | 80,089 | 64,184 | ||||
| Prepayments and other current assets | 117,303 | 103,127 | ||||
| Notes receivable | 5,430 | 7,016 | ||||
| Time deposits with maturities over three months but within one year | 21,417 | 24,256 | ||||
| Cash and cash equivalents | 77,305 | 86,409 | ||||
| TOTAL CURRENT ASSETS | 487,414 | 466,913 | ||||
| CURRENT LIABILITIES | ||||||
| Accounts payable and accrued liabilities | 292,302 | 328,314 | ||||
| Contract liabilities | 84,993 | 82,490 | ||||
| Income taxes payable | 5,794 | 7,564 | ||||
| Other taxes payable | 37,529 | 59,818 | ||||
| Short-term borrowings | 285,916 | 175,840 | ||||
| Lease liabilities | 5,431 | 7,393 | ||||
| TOTAL CURRENT LIABILITIES | 711,965 | 661,419 | ||||
| NET CURRENT LIABILITIES | (224,551 | ) | (194,506 | ) | ||
| TOTAL ASSETS LESS CURRENT LIABILITIES | 2,015,063 | 2,071,491 | ||||
| EQUITY | ||||||
| EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY: | ||||||
| Share capital | 183,021 | 183,021 | ||||
| Retained earnings | 726,894 | 743,124 | ||||
| Reserves | 302,301 | 304,011 | ||||
| TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY | 1,212,216 | 1,230,156 | ||||
| NON-CONTROLLING INTERESTS | 216,240 | 214,149 | ||||
| TOTAL EQUITY | 1,428,456 | 1,444,305 | ||||
| NON-CURRENT LIABILITIES | ||||||
| Long-term borrowings | 247,545 | 290,882 | ||||
| Asset retirement obligations | 140,003 | 137,935 | ||||
| Lease liabilities | 165,373 | 164,143 | ||||
| Deferred tax liabilities | 21,248 | 21,411 | ||||
| Other long-term obligations | 12,438 | 12,815 | ||||
| TOTAL NON-CURRENT LIABILITIES | 586,607 | 627,186 | ||||
| TOTAL EQUITY AND NON-CURRENT LIABILITIES | 2,015,063 | 2,071,491 |
28
- Consolidated Statement of Cash Flows
| Three months ended March 31 | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019^Note^ | |||||
| RMB million | RMB million | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| (Loss) / profit for the period | (13,349 | ) | 16,033 | |||
| Adjustments for: | ||||||
| Income tax expense | 2,678 | 8,539 | ||||
| Depreciation, depletion and amortisation | 57,825 | 55,091 | ||||
| Capitalised exploratory costs charged to expense | 3,134 | 3,014 | ||||
| Safety fund reserve | 1,340 | 1,293 | ||||
| Share of loss / (profit) of associates and joint ventures | 221 | (2,341 | ) | |||
| Provision for impairment of receivables, net | 121 | 92 | ||||
| Write down in inventories, net | 7,848 | (6 | ) | |||
| Loss on disposal of property, plant and equipment | 223 | 45 | ||||
| Loss / (gain) on disposal of other non-current<br>assets | 1 | (80 | ) | |||
| Dividend income | (1 | ) | — | |||
| Interest income | (790 | ) | (799 | ) | ||
| Interest expense | 7,830 | 7,690 | ||||
| Changes in working capital: | ||||||
| Accounts receivable, prepayments and other current assets | (30,608 | ) | (36,079 | ) | ||
| Inventories | (11,795 | ) | 5,437 | |||
| Accounts payable and accrued liabilities | (35,655 | ) | 23,258 | |||
| Contract liabilities | 2,503 | (8,424 | ) | |||
| CASH FLOWS (USED FOR) / GENERATED FROM OPERATIONS | (8,474 | ) | 72,763 | |||
| Income taxes paid | (9,622 | ) | (10,998 | ) | ||
| NET CASH FLOWS (USED FOR) / GENERATED FROM OPERATING ACTIVITIES | (18,096 | ) | 61,765 |
29
- Consolidated Statement of Cash Flows (Continued)
| Three months ended March 31 | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019^N^^ote^ | |||||
| RMB million | RMB million | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Capital expenditures | (48,913 | ) | (59,012 | ) | ||
| Acquisition of investments in associates and joint ventures | (1,113 | ) | (96 | ) | ||
| Prepayments on long-term leases | (771 | ) | (901 | ) | ||
| Acquisition of intangible assets and other non-current<br>assets | (188 | ) | (1,029 | ) | ||
| Acquisition of subsidiaries | (58 | ) | — | |||
| Proceeds from disposal of property, plant and equipment | 6 | 52 | ||||
| Proceeds from disposal of other non-current<br>assets | 18 | 43 | ||||
| Interest received | 826 | 478 | ||||
| Dividends received | 282 | 304 | ||||
| (Increase)/decrease in time deposits with maturities over three months | (90 | ) | 1,438 | |||
| NET CASH FLOWS USED FOR INVESTING ACTIVITIES | (50,001 | ) | (58,723 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Repayments of short-term borrowings | (193,862 | ) | (137,931 | ) | ||
| Repayments of long-term borrowings | (22,208 | ) | (62,790 | ) | ||
| Repayments of lease liabilities | (3,388 | ) | (7,268 | ) | ||
| Interest paid | (6,521 | ) | (5,662 | ) | ||
| Dividends paid to non-controlling interests | (842 | ) | (472 | ) | ||
| Increase in short-term borrowings | 252,019 | 176,106 | ||||
| Increase in long-term borrowings | 32,864 | 66,259 | ||||
| Cash contribution from non-controlling interests | 59 | 47 | ||||
| Capital reduction of subsidiaries | — | (10 | ) | |||
| NET CASH FLOWS FROM FINANCING ACTIVITIES | 58,121 | 28,279 | ||||
| TRANSLATION OF FOREIGN CURRENCY | 872 | (1,006 | ) | |||
| (Decrease) / increase in cash and cash equivalents | (9,104 | ) | 30,315 | |||
| Cash and cash equivalents at beginning of the period | 86,409 | 85,954 | ||||
| Cash and cash equivalents at end of the period | 77,305 | 116,269 | ||||
| Note: | The comparative amounts in the financial statements are presented as if Dalian West Pacific had been<br>consolidated from the beginning of the earliest reporting period presented. | |||||
| --- | --- |
30
- Segment Information
| Three months ended March 31 | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019^N^^ote^ | |||||
| RMB million | RMB million | |||||
| Revenue | ||||||
| Exploration and Production | ||||||
| Intersegment sales | 131,184 | 123,570 | ||||
| Revenue from external customers | 23,408 | 28,772 | ||||
| 154,592 | 152,342 | |||||
| Refining and Chemicals | ||||||
| Intersegment sales | 137,634 | 171,444 | ||||
| Revenue from external customers | 39,972 | 47,276 | ||||
| 177,606 | 218,720 | |||||
| Marketing | ||||||
| Intersegment sales | 75,560 | 79,776 | ||||
| Revenue from external customers | 349,402 | 412,925 | ||||
| 424,962 | 492,701 | |||||
| Natural Gas and Pipeline | ||||||
| Intersegment sales | 8,570 | 8,680 | ||||
| Revenue from external customers | 96,201 | 105,666 | ||||
| 104,771 | 114,346 | |||||
| Head Office and Other | ||||||
| Intersegment sales | 18 | 34 | ||||
| Revenue from external customers | 115 | 176 | ||||
| 133 | 210 | |||||
| Total revenue from external customers | 509,098 | 594,815 | ||||
| (Loss) / profit from operations | ||||||
| Exploration and Production | 14,883 | 14,326 | ||||
| Refining and Chemicals | (8,702 | ) | 3,070 | |||
| Marketing | (16,593 | ) | 3,517 | |||
| Natural Gas and Pipeline | 11,359 | 12,582 | ||||
| Head Office and Other | (4,326 | ) | (3,987 | ) | ||
| (3,379 | ) | 29,508 | ||||
| Note: | The comparative amounts in the financial statements are presented as if Dalian West Pacific had been<br>consolidated from the beginning of the earliest reporting period presented. | |||||
| --- | --- |
31
EX-99.2
Exhibit 99.2
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make norepresentation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document.
中國石油天然氣股份有限公司
PETROCHINA COMPANY LIMITED
(a joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 857)
PROPOSED AMENDMENTS TO THE BUSINESS SCOPE
AND
PROPOSED AMENDMENTSTO THE ARTICLES OF ASSOCIATION
The board of directors (the “Board”) of PetroChina Company Limited (the “Company”, together with its subsidiaries, the “Group”) announces that the Board has proposed to amend the business scope of the Company and the articles of association of the Company (the “Articles of Association”). The proposed amendments to the business scope of the Company and the proposed amendments to the Articles of Association will be submitted to the shareholders of the Company (the “Shareholders”) for review and approval by way of special resolutions at a general meeting.
PROPOSED AMENDMENTS TO THE BUSINESS SCOPE
According to the actual situation of the business development of the Company, in order to fulfill the needs of exploration and exploitation of crude oil and gas resources and geothermal resources and the production and operation needs of some of our refined products, and to adapt the needs of operations of electronic sales platform, the Board has considered and approved the resolution on amendments to the business scope of the Company, which contemplates making the following adjustments on the business scope of the Company:
| (i) | “the exploration and production of crude oil and natural gas” being changed to “the exploration,<br>exploitation and sales of resources including crude oil, natural gas, coalbed methane, shale gas, shale oil and gas hydrate” and expanding to include “the exploration, exploitation and usage of geothermal”; |
|---|---|
| (ii) | expanding to include “manufacture and sale of food additives; manufacture and sale of nonwoven<br>fabrics”; and |
| --- | --- |
| (iii) | expanding to include “value-added telecommunications services, online platform, online information<br>services, online data services, and online wholesale and retail services”. |
| --- | --- |
The proposed amendments to the business scope of the Company are subject to the satisfaction of the following conditions:
| (i) | a special resolution passed by the Shareholders at a general meeting to approve the proposed amendments to the<br>business scope of the Company; and |
|---|---|
| (ii) | all the necessary approval, authorization, filing and/or registration obtained from the relevant authorities<br>for the proposed amendments to the business scope of the Company. |
| --- | --- |
The amended business scope of the Company will take effect upon satisfaction of the above conditions.
PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION
In view of the proposed amendments to the business scope of the Company, the Board proposed to amend Article 11 of the Articles of Association.
The resolution on the proposed amendments to the Articles of Association is subject to the approval by the Shareholders by way of special resolution at a general meeting.
The details of the proposed amendments to the Articles of Association are set out below:
| Current Article | Article after the proposedamendments |
|---|---|
| Article 11 The Company’s scope of business includes:<br> <br><br><br><br>Licensed business: the exploration and production of oil and natural gas; the storage and sale of crude oil; the storage and sale of refined oil; the<br>production of dangerous chemicals; the sale of food (including food and beverages, but limited to branches with food hygiene license); the sale of tobacco (but limited to branches with tobacco franchised retailing license). Retail of prepackaged<br>food, dairy products and health products; business undertakings in gas and hazardous chemicals; fixed and skid-mounted gasoline stations as well as LPG stations; provision of lodgings; retail of books, newspapers, periodicals, electronic<br>publications and audio-visual products; water and land transportation. The scope and term of licensed business shall be consistent with and subject to the relevant permission certificate and license.<br><br><br><br> <br>General business: the production, sale and warehousing of refined oil, petrochemical and<br>chemical products; import and export; the construction and operation of oil and natural gas pipelines; the technical development, consultation and service for oil exploration and production, petrochemistry and related engineering; the sale of<br>materials, equipment and machines necessary for production and construction of oil and gas, petrochemicals and pipelines construction; the sale and warehousing of lubricating oil, fuel oil, bitumen, chemical fertilizers, auto parts, commodities and<br>agricultural materials; and the lease of premises, machines and equipment. Retail of textiles and clothing, daily living and office supplies, sporting and outdoor gears, hardware, furniture, electrical and electronic products, rechargeable cards,<br>birth control products, as well as industrial safety products; acting as an agent for lottery services, payment services (for public utilities such as payments of water and electricity bills), ticketing, transportation and vehicle weighing;<br>advertising.<br> <br><br> <br>The Company’s scope of business shall be consistent with and<br>subject to the scope of business approved by the authority responsible for the registration of the Company.<br> <br><br><br><br>The Company may, according to the demand in the domestic and international markets, the Company’s development ability and the requirements of its<br>business, adjust its scope of business in accordance with the laws.<br> <br><br> <br>Subject to and<br>in compliance with laws and administrative regulations of the People’s Republic of China (“PRC”), the Company has the power to raise and borrow money, which includes (without limitation) the power to borrow money, issue debentures,<br>mortgage or pledge all or part of the Company’s interests and to provide guarantees of various forms for the debts of third parties (including, without limitation, subsidiaries or associated companies of the Company) under different<br>circumstances. | Article 11 The Company’s scope of business includes:<br> <br><br><br><br>Licensed business: the exploration, exploitation and sales of resources including crude oil, natural gas, coalbed methane, shalegas, shale oil and gas hydrate; the exploration, exploitation and usage of geothermal; **** the storage and sale of crude oil; the storage and sale of refined oil; the production of dangerous chemicals; the sale of food (including food and<br>beverages, but limited to branches with food hygiene license); the sale of tobacco (but limited to branches with tobacco franchised retailing license); **** retail of prepackaged food, dairy products and health products; business undertakings in<br>gas and hazardous chemicals; fixed and skid-mounted gasoline stations as well as LPG stations; provision of lodgings; retail of books, newspapers, periodicals, electronic publications and audio-visual products; water and land transportation;<br>manufacture and sale of food additives; manufacture and sale of nonwoven fabrics; value-added telecommunications services, online platform, online information services, online data services, and online wholesale and retail services.<br><br><br><br> <br>General business: the production, sale and warehousing of refined oil, petrochemical and<br>chemical products; import and export; the construction and operation of oil and natural gas pipelines; the technical development, consultation and service for oil exploration and production, petrochemistry and related engineering; the sale of<br>materials, equipment and machines necessary for production and construction of oil and gas, petrochemicals and pipelines construction; the sale and warehousing of lubricating oil, fuel oil, bitumen, chemical fertilizers, auto parts, commodities and<br>agricultural materials; and the lease of premises, machines and equipment. Retail of textiles and clothing, stationery and sports goods, hardware, furniture, electrical and electronic products, rechargeable cards, birth control products, as well as<br>industrial safety products; acting as an agent for lottery services, payment services (for public utilities such as payments of water and electricity bills), ticketing, transportation and vehicle weighing; advertising.<br><br><br><br> <br>For items required to be approved by laws, operations may be conducted only upon andwith the approval of relevant authorities.<br> <br><br> <br>The Company’s scope of business<br>shall be consistent with and subject to the scope of business approved by the authority responsible for the registration of the Company.<br> <br><br><br><br>The Company may, according to the demand in the domestic and international markets, the Company’s development ability and the requirements of its<br>business, adjust its scope of business in accordance with the laws.<br> <br><br> <br>Subject to and<br>in compliance with laws and administrative regulations of the People’s Republic of China (“PRC”), the Company has the rights to raise and borrow money, which includes (without limitation) the rights to borrow money, issue debentures,<br>mortgage or pledge all or part of the Company’s interests and to provide guarantees of various forms for the debts of third parties (including, without limitation, subsidiaries or associated companies of the Company) under different<br>circumstances. |
The Company confirms that the proposed amendments to the Articles of Association will not affect the existing business and operation of the Company.
A notice and a circular containing, among others, the details of the proposed amendments to the business scope of the Company and proposed amendments to the Articles of Association will be dispatched to the Shareholders in due course.
| By order of the Board |
|---|
| PetroChina Company Limited |
| Secretary to the Board |
| Wu Enlai |
Beijing, the PRC
29 April 2020
As at the date of this announcement, the Board comprises Mr. Dai Houliang as Chairman; Mr. Li Fanrong as Vice Chairman and non-executive Director; Mr. Liu Yuezhen, Mr. Lv Bo and Mr. Jiao Fangzheng as non-executive Directors; Mr. Duan Liangwei as executive Director; andMr. Lin Boqiang, Mr. Zhang Biyi, Ms. Elsie Leung Oi-sie, Mr. Tokuchi Tatsuhito and Mr. Simon Henry as independent non-executive Directors.
EX-99.3
Exhibit 99.3
Orderly Resumed Work and Production, while Actively Initiated Special Campaign to Enhance Quality and Profitability
PetroChina Steadily Promoted Production and Operation in First Quarter of 2020
(Beijing, 29 April 2020) – PetroChina Company Limited (“PetroChina” or “the Company”, HKSE: 00857; NYSE: PTR; SSE: 601857) announced today that in the first quarter of 2020, facing the challenges brought about by the COVID-19 pandemic and the impact of global oil prices plunging off a cliff, the Company faithfully acted out the new concept of development, pushed ahead the quality-based development, implemented effective pandemic prevention and control measures, and started the resumption of work and production in an orderly manner. The Company also initiated special campaign to enhance quality and profitability, optimized production and operation while strengthening investment and cost control, striving to minimize the impact of the pandemic. Under the International Financial Reporting Standards, PetroChina recorded a revenue of RMB509,098 million and a net loss attributable to owners of the Company of RMB16,230 million in the first quarter of 2020.
First Quarter Results Review
Focused on highly efficient exploration and profitability-oriented development, aiming to increase economic scale of recoverable reservesand continuously secure resources base. In the first quarter of 2020, the oil and natural gas equivalent output achieved an amount of 414 million barrels, representing an increase of 6.1% year on year. The Company actively responded to the challenges of the low oil price, continued on cost control, and the unit oil and gas lifting cost decreased by 8.9% year on year, thus the Exploration and Production segment realized an operating profit of RMB14,883 million, representing an increase of 3.9% from the same period last year.
1
Continued being customer-centric and market-oriented while optimizing productionoperations. The Refining and Chemicals segment took proactive steps to manage the adverse impact of decreasing demand in the domestic market of refined products, reasonably adjusted load of facilities and structure of products and optimized production and operation, while pushing forward transformation and upgrading, and promoting development at lower cost. The Company endeavored to increase the output of highly value-added chemical products, which resulted in an increase of 2.9% in the outputs of chemical commodity products year-on-year. In the first quarter of 2020, the Company processed 277 million barrels of crude oil, representing a decrease of 9.6% year on year; the production of refined oil products was 25.208 million tons, representing a decrease of 13.8% year-on-year. The Refining and Chemicals segment realized operating losses of RMB8.702 billion. The Marketing segment actively responded to the negative impact of the pandemic and market weakness, optimized its product structure and inventory management, promoted refined marketing, strengthened sales network construction, and proactively implemented the profits-oriented, integrated and coordinated management of domestic and international markets, to enhance the overall value of the industrial chain. In the first quarter of 2020, the sales of refined oil products reached 35.478 million tons, representing a decrease of 15.9% year-on-year. The Marketing segment realized an operating loss of RMB16.593 billion. The Natural Gas and Pipeline segment adhered to market and profitability orientation, continuously improved the structure of gas resources, focused on the development of major high-profitability markets and end-user marketing. At the same time, the Company intensified pipeline construction and reinforced safe operation management, and constantly enhanced the interconnection of pipeline networks and its ability to coordinate the deployment of oil and gas resources. In the first quarter of 2020, due to the reduction in sales and decrease in the prices of natural gas, the Natural Gas and Pipeline segment realized an operating profit of RMB11.359 billion, representing a decrease of 9.7% year-on-year.
2
Amid the pandemic of Covid-19, the Companyactively fulfilled its social responsibilities. While comprehensively promoting the prevention and control of the pandemic, PetroChina proactively supported the regions severely impacted by the pandemic. It donated funds to Hubei Province and quickly mobilized its oil and gas resources to secure sufficient supply. The Group’s refined oil products marketing subsidiaries opened green lanes and convenient access to provide round-the-clock precise services with a supply of full range of products. The natural gas marketing subsidiaries donated natural gas to dozens of designated hospitals in Hubei. The refining subsidiaries maximized their advantages in production, skills and talents, actively organized the research, development and production of melt-blown nonwoven fabrics, immediately adjusted the product structure, maximized productivity to provide protective products to fight against the pandemic, and have been fully supportive to China and the world’s actions to prevent and control the pandemic.
Outlook
Looking ahead to the remaining three quarters of 2020, affected by the downturn of the world economy, the supply of global oil market is expected to remain excessive, and the global oil price is expected to fluctuate at a low level. Facing this unprecedented and severe situation, the Company will highlight its key projects while constraining its non-major ones, insist on cutting cost as well as enhancing profitability, and adhere to the bottom line thinking of adjusting expenses based on income. It will also adhere to a long-term positive response, carry out special campaign to enhance quality and profitability. The Company will adjust its annual development and investment plan in a timely and dynamic manner according to change in oil price, optimize investment structure and improve the return on investment, strengthen the overall coordination of industrial chain and value chain, implement financial operation to create efficiency, and strictly control the management costs and expenses. It will also strengthen the performance-linked examination, exert the driving force of technological innovation and deepen the market-oriented reform to ensure the orderly functioning of production and operations, aiming to maintain the healthy and sustainable development of its financial situation, striving to create value for shareholders.
3
Additional information on PetroChina is available at the Company’s website:
http://www.petrochina.com.cn
Issued by PetroChina Company Limited
For further information, please contact:
PetroChina Company Limited
| PR Agency (Overseas media): | |
|---|---|
| Hill+Knowlton Strategies | Fax: (852) 2576 1990 |
| Joanne Lam | Tel: (852) 2894 6211 |
| Email: joanne.lam@hkstrategies.com | |
| PR Agency (Domestic media): | |
| EverBloom Investment Consulting Lt. Co. | Fax: (8610) 8562 3181 |
| Liu Ping | Tel: (8610) 5166 3828 |
| Email: ping.liu@everbloom.com.cn |
4