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 October 2021
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 | Third quarterly report of 2021; |
| 99.2 | Press release in relation to the 3^rd^ quarterly report; |
| 99.3 | Appointment of vice chairman and redesignation of non-executive director, etc. |
| 99.4 | List of directors and their role and functions. |
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: October 28, 2021 | By: | /s/ CHAI Shouping |
| Name: | CHAI Shouping | |
| 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
ThirdQuarterly Report of 2021
| 1. | Important Notice |
|---|---|
| 1.1. | The Board of Directors, the Supervisory Committee and the Directors, Supervisors and Senior Management of<br>PetroChina Company Limited (the “Company”) warrant that there are no material omissions from, or misrepresentation or misleading statements contained in this quarterly report, and jointly and severally accept full responsibility for the<br>truthfulness, accuracy and completeness of the information contained in this quarterly report. |
| --- | --- |
| 1.2. | This quarterly report has been approved at the 12th meeting of the eighth session of the Board of Directors of<br>the Company. All Directors have attended the current meeting of the Board of Directors. |
| --- | --- |
| 1.3. | Mr. Dai Houliang, Chairman of the Board of Directors of the Company, Mr. Huang Yongzhang, Director<br>and President of the Company, and Mr. Chai Shouping, Chief Financial Officer of the Company, warrant the truthfulness, accuracy and completeness of the financial information 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 Information of the Company |
|---|---|
| 2.1 | Key Financial Data |
| --- | --- |
| 2.1.1 | Key Financial Data and Financial Indicators Prepared under IFRS |
| --- | --- |
Unit: RMB Million
| For the three months endedSeptember 30<br>(July-September) | For the nine months ended<br>September 30<br>(January-September) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Items | 2021 | 2020 | Changes overthe sameperiod of theprecedingyear (%) | 2021 | 2020 | Changesover thesame periodof theprecedingyear (%) | |||||||
| Revenue | 683,760 | 497,125 | 37.5 | 1,880,341 | 1,426,170 | 31.8 | |||||||
| Profit attributable to owners of the Company | 22,089 | 40,050 | (44.8 | ) | 75,126 | 10,067 | 646.3 | ||||||
| Return on net assets (%) | 1.77 | 3.31 | (1.54)<br>percentage<br>points | 6.03 | 0.83 | 5.20<br>percentage<br>points | |||||||
| Basic earnings per share (RMB Yuan) | 0.121 | 0.219 | (44.8 | ) | 0.410 | 0.055 | 646.3 | ||||||
| Diluted earnings per share (RMB Yuan) | 0.121 | 0.219 | (44.8 | ) | 0.410 | 0.055 | 646.3 |
Unit: RMB Million
| Items | From the beginningof the year to theend of the reportingperiod | From thebeginning of the<br>preceding year to theend of the precedingreporting period | Changes over the sameperiod of the precedingyear (%) | |||
|---|---|---|---|---|---|---|
| Net cash flows from operating activities | 226,747 | 163,303 | 38.9 | |||
| Items | As at the end of thereporting period | As at the end of thepreceding year | Changes fromthe end of the<br>preceding year to the end ofthe reporting period (%) | |||
| --- | --- | --- | --- | --- | --- | --- |
| Total assets | 2,547,660 | 2,488,126 | 2.4 | |||
| Equity attributable to equity holders of the Company | 1,245,622 | 1,215,158 | 2.5 |
2
| 2.1.2 | Key Financial Data and Financial Indicators Prepared under CAS |
|---|
Unit: RMB Million
| For the three months ended<br>September 30<br>(July-September) | For the nine months ended<br>September 30<br>(January-September) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Items | 2021 | 2020 | Changes over thesame period of thepreceding year(%) | 2021 | 2020 | Changes overthe sameperiod of thepreceding<br>year (%) | ||||||||
| Operating income | 683,760 | 497,125 | 37.5 | 1,880,341 | 1,426,170 | 31.8 | ||||||||
| Net profit attributable to equity holders of the Company | 22,086 | 40,050 | (44.8 | ) | 75,122 | 10,064 | 646.4 | |||||||
| Net profit after deducting non-recurring profit/loss items<br>attributable to equity holders of the Company | 23,013 | 8,586 | 168.0 | 68,244 | (23,204 | ) | Increase by<br> <br>RMB91,448 million | |||||||
| Weighted average return on net assets (%) | 1.76 | 3.34 | (1.58<br> <br>percentage points | ) | 6.05 | 0.82 | 5.23 percentage<br>points | |||||||
| Basic earnings per share (RMB Yuan) | 0.121 | 0.219 | (44.8 | ) | 0.410 | 0.055 | 646.4 | |||||||
| Diluted earnings per share (RMB Yuan) | 0.121 | 0.219 | (44.8 | ) | 0.410 | 0.055 | 646.4 |
Unit: RMB Million
| Items | From the beginningof the year to theend of the reportingperiod | From the beginningof the<br>preceding year to theend of the precedingreporting period | Changes over the sameperiod of the precedingyear (%) | |||
|---|---|---|---|---|---|---|
| Net cash flows from operating activities | 226,747 | 163,303 | 38.9 | |||
| Items | As at the end of thereporting period | As at the end of thepreceding year | Changes fromthe end of the<br>preceding year to the end ofthe reporting period (%) | |||
| --- | --- | --- | --- | --- | --- | --- |
| Total assets | 2,547,930 | 2,488,400 | 2.4 | |||
| Equity attributable to equity holders of the Company | 1,245,881 | 1,215,421 | 2.5 |
3
Unit: RMB Million
| Non-recurring profit/lossitems | For the threemonths endedSeptember 30<br>(July-September)profit/(loss) | For the ninemonths ended<br>September 30(January–September)<br>profit/(loss) | ||||
|---|---|---|---|---|---|---|
| Profit on disposal of non-current assets | 853 | 842 | ||||
| Government grants recognised in the income statement | 213 | 583 | ||||
| Reversal of provisions for bad debts against receivables | 13 | 31 | ||||
| Net profit on disposal of subsidiaries, associated companies and joint ventures | 334 | 18,951 | ||||
| Other non-recurring expenses, net | (2,241 | ) | (4,099 | ) | ||
| Sub-total | (828 | ) | 16,308 | |||
| Tax impact of non-recurring profit/loss items | (2 | ) | (1,841 | ) | ||
| Impact of non-controlling interests | (97 | ) | (7,589 | ) | ||
| Total | (927 | ) | 6,878 | |||
| 2.1.3 | Differences between CAS and IFRS | |||||
| --- | --- |
✓Applicable ☐Inapplicable
The consolidated net profit for the nine months ended September 30, 2021 under IFRS and CAS were RMB93,059 million and RMB93,055 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 RMB1,388,535 million and RMB1,388,795 million, respectively, with a difference of RMB260 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 (中國石油天然氣集團公司, now renamed 中國石油天然氣集團有限公司 on 19 December 2017, “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 Holders of Shares Without Selling Restrictions) as at the End of the Reporting Period | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Number of shareholders as at theend of the reporting period | 603,795 shareholders including 597,892 holders of A shares and 5,903 holders of H shares<br>(including 143 holders of the American Depository Shares) | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Shareholdings of the top tenshareholders | |||||||||||
| Name of<br><br><br>shareholders | Nature of<br>shareholder | Percentage ofShareholdings<br>(%) | Number of sharesheld | Number ofshareswithsellingrestrictions | Pledged, marked or<br>frozen shares | ||||||
| Conditionof shares | Number ofshares | ||||||||||
| CNPC | State-owned<br>Legal Person | 80.25 | 146,882,339,136 | (1) | 0 | 0 | |||||
| HKSCC Nominees Limited^(2)^ | Overseas<br>Legal Person | 11.42 | 20,897,420,228 | ^(3)^ | 0 | 0 | |||||
| CNPC-CSC-17 CNPC E2 Pledge and Trust Special Account | State-owned<br>Legal Person | 2.09 | 3,819,965,034 | 0 | Pledged | 3,819,965,034 | |||||
| CNPC-CSC-17 CNPC EB Pledge and Trust Special Account | State-owned<br>Legal Person | 1.12 | 2,051,488,480 | 0 | Pledged | 2,051,488,480 | |||||
| China Securities Finance Corporation Limited | State-owned<br>Legal Person | 0.56 | 1,020,165,128 | 0 | 0 | ||||||
| Hong Kong Securities Clearing Company Limited (“HKSCC”)^(4)^ | Overseas<br>Legal Person | 0.40 | 725,991,235 | 0 | 0 | ||||||
| China Metallurgical Group Corporation | State-owned<br>Legal Person | 0.31 | 560,000,000 | 0 | 0 | ||||||
| Bosera Fund - Ansteel Group Corporation - Bosera Fund Xin’an No.1 Single Asset Management Plan | State-owned<br>Legal Person | 0.12 | 212,039,400 | 0 | 0 | ||||||
| Central Huijin Asset Management Ltd. | State-owned<br>Legal Person | 0.11 | 206,109,200 | 0 | 0 | ||||||
| Agricultural Bank of China Limited - Dacheng Xinrui Industrial Hybrid Securities Investment Fund | Others | 0.06 | 104,981,400 | 0 | 0 |
5
| Shareholdings of the top ten shareholderswithout selling restrictions | ||||
|---|---|---|---|---|
| Name of shareholders | Number of<br>shares held | Type ofshares | ||
| CNPC | 146,882,339,136 | A shares | ||
| HKSCC Nominees Limited | 20,897,420,228 | H shares | ||
| CNPC-CSC-17 CNPC<br>E2 Pledge and Trust Special Account | 3,819,965,034 | A shares | ||
| CNPC-CSC-17 CNPC<br>EB Pledge and Trust Special Account | 2,051,488,480 | A shares | ||
| China Securities Finance Corporation Limited | 1,020,165,128 | A shares | ||
| Hong Kong Securities Clearing Company Limited | 725,991,235 | A shares | ||
| China Metallurgical Group Corporation | 560,000,000 | A shares | ||
| Bosera Fund - Ansteel Group Corporation - Bosera Fund Xin’an No.1 Single Asset Management<br>Plan | 212,039,400 | A shares | ||
| Central Huijin Asset Management Ltd. | 206,109,200 | A shares | ||
| Agricultural Bank of China Limited - Dacheng Xinrui Industrial Hybrid Securities Investment<br>Fund | 104,981,400 | A shares | ||
| Statement on the connection or activities acting in concert among the above-mentioned shareholders:<br><br><br><br> <br>Except for HKSCC Nominees Limited and HKSCC that are wholly-owned<br>subsidiaries of Hong Kong Exchanges and Clearing Limited, the Company is not aware of any connection among or between the other top ten shareholders or that they are persons acting in concert as provided for in the Measures for the Administration of<br>Acquisitions by Listed Companies. | ||||
| Notes: | (1) Such figure excludes the H shares indirectly held by CNPC through Fairy<br>King Investments Limited, an overseas wholly-owned subsidiary of CNPC. | |||
| --- | --- | |||
| (2) HKSCC Nominees Limited is a wholly-owned subsidiary of Hong KongExchanges and Clearing Limited and acts as 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 KingInvestments Limited, an overseas wholly-owned subsidiary of CNPC, representing 0.16% of the total issued shares of the Company. These shares were held in the name of HKSCC Nominees Limited. | ||||
| (4) HKSCC is a wholly-owned subsidiary of Hong Kong Exchanges and ClearingLimited and acts as the nominee on behalf of investors of Hong Kong Stock Exchange to hold the A shares of the Company listed on Shanghai Stock Exchange. | ||||
| 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 |
|---|
Despite the continued economic recovery throughout the world during the first three quarters in 2021, there was a divergence in the development trend of different economies due to the impact from the fluctuating cases in the prevention and control of the Coronavirus Disease 2019 (the “COVID-19”). There was a rapid recovery of the demand in the international crude oil market, which led to a tight balance in the demand and supply. The international crude oil prices continued to rebound, with the average spot price of North Sea Brent crude oil and the average spot price of the West Texas Intermediate (“WTI”) crude oil standing at US$67.94 per barrel and US$65.12 per barrel, representing a surge of 65.7% and 70.8% as compared with the same period of last year, respectively. As China managed to bring COVID-19 under effective control, the domestic macro-economy has been improving and developing on a continued basis. The gross domestic product (GDP) of the first third quarters recorded a 9.8% increase on a year-on-year basis. With the gradual uptick in demand in the international crude oil market, the domestic refined oil market has been largely restored to the pre-COVID-19 levels, and the demand for the natural gas market has also been increased rapidly.
The Group promptly captured the favorable opportunity arising from the recovery of the macro-economy, the uptick in the oil and gas market demand and the rebound of international oil prices, and adhered to the five major development strategies, namely innovation, resources, market, internationalization, green and low-carbon, by focusing on high-quality development and proactively following the requirements of achieving the “carbon peak, carbon neutrality” target and also the trend of energy transformation. We also coordinated a range of works, including the prevention and control of COVID-19, production and operation, quality and profitability enhancement, reform and innovation and ESG matters. As the Group insisted on implementing refined management and strengthening its control over cost and expense, the operation of the oil and gas busines, i.e. the two major industry chains, was stable in general, which resulted that the business operation was significantly improved with continuous promising performance and that the Group and all of its four business segments continued to remain profitable. In the first three quarters of 2021, the average realised price for crude oil of the Group was US$62.66 per barrel, representing an increase of 56.4% as compared with the same period of last year, of which the domestic realised price was US$62.62 per barrel, representing an increase of 51.1% as compared with the same period of last year. The domestic average realised price for natural gas was US$5.93 per thousand cubic feet, representing an increase of 4.6% as compared with the same period of last year after excluding the impacts of foreign exchange. According to IFRS, the Group generated a revenue of RMB1,880,341 million, representing an increase of 31.8% as compared with the same period of last year, and a net profit attributable to owners of the Company of RMB75,126 million, representing an increase of 646.3% as compared with the same period of last year. The substantial growth in free cash flows enable the Group to maintain a sound financial position.
7
In respect of domestic exploration and production business, the Group intensified its efforts in conducting scientific and technological research and development activities and vigorously promoted profitable exploration, with an aim to increasing the economically recoverable reserves. While the Group continued to achieve profitable development and to constantly facilitate on stable production in old oil and gas fields and profitable production construction in new areas, it also adhered to a low-cost development strategy in order to further strengthen its refined control over costs and expenses. By fully taking the advantages in resources, the Group maintained a rapid growth in its natural gas production and expanded in an orderly manner the coverage of its new energy business. In the first three quarters of 2021, the domestic crude oil output from the Group amounted to 561.1 million barrels, representing an increase of 0.3% as compared with the same period of last year. The marketable natural gas output of the Group amounted to 3,136.6 billion cubic feet, representing an increase of 7.9% as compared with the same period of last year. The oil and gas equivalent output was 1,084.5 million barrels, representing an increase of 3.8% as compared with the same period of last year. In terms of its overseas business, having put in place measures for regular epidemic prevention and control, the Group actively and steadily pushed forward the production and operation of key projects and constantly optimised its business presence and asset structure. In the first three quarters of 2021, the overseas crude oil output from the Group amounted to 100.7 million barrels, representing a decrease of 28.7% as compared with the same period of last year. The marketable natural gas output of the Group amounted to 143.9 billion cubic feet, representing a decrease of 16.6% as compared with the same period of last year. The oil and gas equivalent output was 124.7 million barrels, representing a decrease of 26.6% as compared with the same period of last year. These changes were primarily due to the impact brought by the surge in international oil prices, the decrease in product sharing of several overseas projects and production restriction policies in certain countries with resources. The overall crude oil output from the Group amounted to 662.3 million barrels, representing a decrease of 5.6% as compared with the same period of last year. The marketable natural gas output of the Group amounted to 3,280.5 billion cubic feet, representing an increase of 6.5% as compared with the same period of last year. The oil and gas equivalent output was 1,209.2 million barrels, representing a decrease of 0.4% as compared with the same period of last year. The unit oil and gas lifting cost was US$11.36 per barrel, representing an increase of 12.8% as compared with the same period of last year and an increase of 4.5% after excluding the impacts of foreign exchange. The exploration and production segment achieved in the first three quarters of 2021 an operating income of RMB487,479 million, representing an increase of 25.8%, and achieved an operating profit of RMB58,369 million, representing a surge of 191.8% as compared with the same period of last year.
In respect of refining and chemicals business, the Group adhered to the market-oriented and profitability-focused approach. Through optimising our production and operation, the production facilities of the Group were smoothly operated and under control, which resulted that most of the technical and economic indicators were improved on a year-on-year basis. Further, the Group continued to carry out the transformation and upgrading of our refining and chemical business, and optimised in a timely manner its product structure to in line with market demand. At the same time, we vigorously control the oil production and increase the chemicals production, continuously reduced the yield of gasoline and diesel products, adopt a flexible approach in adjusting the ratio of diesel fuel to gasoline, and maintain a high load operation of ethylene as well as other key chemical units. Following the successful completion, and the subsequent commencement of operation of the ethane to ethylene projects in Changqing and Tarim, the Group vigorously enhanced its technological innovation and actively promoted the research and development of new chemical products and materials. We also intensified our marketing efforts and focused on identifying direct sales customers with an aim to increasing to the fullest extent as possible the production and sale of high value-added chemical products. As we further strengthened our control over costs and expenses, we were in position to achieve a continuous reduction in unit processing costs under the rising oil price. In the first three quarters of 2021, the Group processed a total amount of 911.9 million barrels of crude oil, representing an increase of 3.9% as compared with the same period of last year. The Group produced 81.327 million tons of gasoline, kerosene and diesel, representing an increase of 1.4% as compared with the same period of last year. The output of chemical products amounted to 22.695 million tons, representing an increase of 5.5% as compared with the same period of last year. The refining and chemicals segment achieved in the first three quarters in 2021 an operating income of RMB705,811 million, representing an increase of 22.0% as compared with the same period of last year, and an operating profit of RMB31,990 million, representing an increase of RMB33,658 million as compared with the same period of last year, of which the refining operations recorded an operating income of RMB533,190 million, representing an increase of 19.0% as compared the same period of last year, and an operating profit of RMB20,133 million, representing an increase of RMB28,403 million as compared the same period of last year; and the chemical operations achieved an operating income of RMB172,621 million, representing an increase of 32.2% as compared with the same period of last year, and an operating profit of RMB11,857 million, representing an increase of RMB5,255 million as compared with the same period of last year, which hit its historical high for the same period.
8
In respect of the marketing business, the Group strengthened the connection between production and sales in line with market changes, coordinated and optimized the flow of resources and enhanced the management of the inventory of refined oil products, which effectively benefited sales for upstream production. As we continuously intensified our marketing initiatives, vigorously implemented refined marketing, and proactively identified end customers, we were able to effectively improve the price realization rate. Further, by coordinating the international and domestic markets and optimising the operation of international trade business, the plan for the export of refined oil products was rationalized based on the profitability of such products, resulting in an improvement in the overall profitability of the value chain. We actively achieved innovation in connection with the method of operation of non-oil business and continuously improved the quality of convenience store development, which contributed to a significant improvement in the profitability of the non-oil business on a year-on-year basis. We also continuously strengthened the development of sales network and applied different digital technologies, which include the Internet of Things, cloud platform, big data and artificial intelligence, to actively explore the development of an integrated energy service platform covering “oil, gas, hydrogen, electricity and non-oil business”. As a result, the first integrated energy service station in China officially commenced operation. In the first three quarters of 2021, the Group recorded a sales of 123.694 million tons of gasoline, kerosene and diesel, representing an increase of 2.5% as compared with the same period of last year, of which the domestic sales of gasoline, kerosene and diesel amounted to 84.106 million tons, representing an increase of 8.1% as compared with the same period of last year. The sales segment recorded in the first three quarters of 2021 an operating income of RMB1,557,629 million, representing an increase of 37.8% as compared with the same period of last year, and an operating profit of RMB8,776 million, representing an increase of RMB13,712 million as compared with the same period of last year.
In respect of natural gas and pipeline business, by capitalising on the favourable opportunities arising from the domestic natural gas market with features that the demand remained unabated during low seasons but became excessive during in peak seasons, the Group intensified its efforts in exploring the market and actively optimised its sales structure. We actively identified direct-supply and direct-marketing customers, continued to strengthen the construction of terminal sales network so as to improve the quality of our customer service and to promote to the fullest extent as possible the expansion of sales and increase profitability. Our natural gas sales experienced a significant growth accordingly. These also enabled us to provide a stable and clean low-carbon energy supply for the green and low-carbon economy transformation. Further, the Group continuously optimised our gas resource structure, rationalised our procurement cycle, allocated long-term trade and spot resources in a scientific manner and actively reduced our procurement costs, which resulted in improving our sales profitability. By following the market-oriented and rule-of-law principles, the restructuring of KunLun Energy Company Limited pipeline assets was successfully completed and the transaction was closed. In the first three quarters of 2021, the Group recorded a sales of 198,721 million cubic metres of natural gas, representing an increase of 14.4% as compared with the same period of last year, of which the domestic sales of natural gas amounted to 138,105 million cubic metres, representing an increase of 16.2% as compared with the same period of last year. The natural gas and pipeline segment recorded in the first three quarters of 2021 an operating income of RMB285,023 million, representing an increase of 10.3% as compared with the same period of last year, and an operating profit of RMB36,715 million, representing a decrease of 36.4%, or an increase of 55.1% after excluding the impact of the gains from pipeline restructuring generated in both the current year and also the previous year, as compared with the same period of last year.
9
Summary of Key Operating Data for the First Three Quarters of 2021
| Operating Data | Unit | For the nine monthsended September 30 | Changes over thesame period of thepreceding year(%) | |||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||||
| Total crude oil output | Million barrels | 662.3 | 701.2 | (5.6 | ) | |||
| of which: domestic | Million barrels | 561.6 | 560.0 | 0.3 | ||||
| overseas | Million barrels | 100.7 | 141.2 | (28.7 | ) | |||
| Marketable natural gas output | Billion cubic feet | 3,280.5 | 3,079.8 | 6.5 | ||||
| of which: domestic | Billion cubic feet | 3,136.6 | 2,907.4 | 7.9 | ||||
| overseas | Billion cubic feet | 143.9 | 172.4 | (16.6 | ) | |||
| Oil and natural gas equivalent output | Million barrels | 1,209.2 | 1,214.6 | (0.4 | ) | |||
| of which: domestic | Million barrels | 1,084.5 | 1,044.7 | 3.8 | ||||
| overseas | Million barrels | 124.7 | 169.9 | (26.6 | ) | |||
| Processed crude oil | Million barrels | 911.9 | 877.3 | 3.9 | ||||
| Gasoline, kerosene and diesel output | Thousand tons | 81,327 | 80,192 | 1.4 | ||||
| of which: Gasoline | Thousand tons | 37,400 | 34,007 | 10.0 | ||||
| Kerosene | Thousand tons | 9,200 | 7,186 | 28.0 | ||||
| Diesel | Thousand tons | 34,727 | 38,999 | (11.0 | ) | |||
| Gasoline, kerosene and diesel gross sales | Thousand tons | 123,694 | 120,645 | 2.5 | ||||
| of which: Gasoline | Thousand tons | 50,621 | 50,251 | 0.7 | ||||
| Kerosene | Thousand tons | 12,217 | 10,264 | 19.0 | ||||
| Diesel | Thousand tons | 60,856 | 60,130 | 1.2 | ||||
| Gasoline, kerosene and diesel domestic sales | Thousand tons | 84,106 | 77,837 | 8.1 | ||||
| of which: Gasoline | Thousand tons | 40,139 | 36,349 | 10.4 | ||||
| Kerosene | Thousand tons | 7,348 | 5,402 | 36.0 | ||||
| Diesel | Thousand tons | 36,619 | 36,086 | 1.5 | ||||
| Output of key chemical products | ||||||||
| Ethylene | Thousand tons | 4,756 | 4,714 | 0.9 | ||||
| Synthetic resin | Thousand tons | 7,834 | 7,637 | 2.6 | ||||
| Synthetic fibre raw materials and polymer | Thousand tons | 862 | 953 | (9.5 | ) | |||
| Synthetic rubber | Thousand tons | 761 | 743 | 2.4 | ||||
| Urea | Thousand tons | 1,802 | 1,634 | 10.3 |
Notes: 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.
| Number of self-operatedgas station andconveniencestore | Unit | As atSeptember 30,2021 | As atDecember 31,2020 | Changes over thesame period of thepreceding year(%) | |||||
|---|---|---|---|---|---|---|---|---|---|
| Number of self-operated gas station | Unit | 22,551 | 22,619 | (0.3 | ) | ||||
| Number of convenience store | Unit | 20,109 | 20,212 | (0.5 | ) |
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 | For the nine monthsended September 30 | Changes<br>(%) | Key explanation of the changes | ||||
|---|---|---|---|---|---|---|---|
| 2021 | 2020 | ||||||
| Operating income | 1,880,341 | 1,426,170 | 31.8 | Mainly due to the increase in the sales of most of the oil and gas products together with the surge in prices | |||
| Net profit attributable to equity holders of the Company | 75,122 | 10,064 | 646.4 | Mainly due to the combined effect from the increase in the sales of most of the oil and gas products, the surge in prices together with gains from restructuring of pipelines | |||
| Net profit after deducting non-recurring profit/loss items attributable to equity holders of the Company | 68,244 | (23,204) | — | Mainly due to the combined effect from the substantial increase in the net profit attributable to equity holders of the Company together with gains from restructuring of pipelines | |||
| Net cash flows from operating activities | 226,747 | 163,303 | 38.9 | Mainly due to the combined effect from the increase in net profit and the change in working capital | |||
| Weighted average returns on net assets (%) | 6.05 | 0.82 | 5.23<br>percentage<br>points | Mainly due to the substantial increase in the net profit attributable to equity holders of the Company | |||
| Basic earnings per share (RMB Yuan) | 0.410 | 0.055 | 646.4 | Mainly due to the substantial increase in the net profit attributable to equity holders of the Company | |||
| Diluted earnings per share (RMB Yuan) | 0.410 | 0.055 | 646.4 | Mainly due to the substantial increase in the net profit attributable to equity holders of the Company |
11
| 3.2 | Other Major Matters |
|---|
☐Applicable ✓Inapplicable
By Order of the Board of Directors
PetroChina Company Limited
Dai Houliang
Chairman
Beijing, the PRC
October 28, 2021
As at the date ofthis announcement, the Board of Directors of the Company comprises Mr. Dai Houliang as the Chairman; Mr. Hou Qijun as Vice Chairman and non-executive director; Mr. Duan Liangwei, Mr. LiuYuezhen, and Mr. Jiao Fangzheng as non-executive directors; Mr. Huang Yongzhang and Mr. Ren Lixin as executive directors; and Ms. Elsie Leung Oi-sie,Mr. Tokuchi Tatsuhito, Mr. Simon Henry, Mr. Cai Jinyong and Mr. Jiang, Simon X. 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.
12
Appendix
A. Financial statements for the third quarter of 2021 prepared in accordance with CAS
1. Consolidated Balance Sheet
| September 30, 2021 | December 31, 2020 | |||
|---|---|---|---|---|
| ASSETS | RMB million | RMB million | ||
| Current assets | ||||
| Cash at bank and on hand | 205,006 | 145,950 | ||
| Accounts receivable | 87,366 | 52,325 | ||
| Receivables financing | 4,130 | 8,076 | ||
| Advances to suppliers | 26,037 | 21,626 | ||
| Other receivables | 25,297 | 26,834 | ||
| Inventories | 147,957 | 128,539 | ||
| Assets held for sale | — | 42,615 | ||
| Other current assets | 52,149 | 60,802 | ||
| Total current assets | 547,942 | 486,767 | ||
| Non-current assets | ||||
| Investments in other equity instruments | 1,099 | 910 | ||
| Long-term equity investments | 263,255 | 250,698 | ||
| Fixed assets | 412,121 | 415,988 | ||
| Oil and gas properties | 778,758 | 813,888 | ||
| Construction in progress | 239,536 | 222,215 | ||
| Right-of-use<br>assets | 140,787 | 144,338 | ||
| Intangible assets | 88,069 | 86,101 | ||
| Goodwill | 8,312 | 8,125 | ||
| Long-term prepaid expenses | 10,643 | 11,869 | ||
| Deferred tax assets | 12,206 | 11,364 | ||
| Other non-current assets | 45,202 | 36,137 | ||
| Total non-current assets | 1,999,988 | 2,001,633 | ||
| TOTAL ASSETS | 2,547,930 | 2,488,400 | ||
| Chairman<br><br><br>Dai Houliang | Director and President<br><br><br>Huang Yongzhang | Chief Financial Officer<br><br><br>Chai Shouping | ||
| --- | --- | --- |
13
1. Consolidated Balance Sheet (Continued)
| September 30, 2021 | December 31, 2020 | |||||
|---|---|---|---|---|---|---|
| LIABILITIES AND SHAREHOLDERS’ EQUITY | RMB million | RMB million | ||||
| Current liabilities | ||||||
| Short-term borrowings | 65,502 | 41,354 | ||||
| Notes payable | 19,435 | 19,313 | ||||
| Accounts payable | 216,940 | 220,318 | ||||
| Contracts liabilities | 89,632 | 91,477 | ||||
| Employee compensation payable | 17,238 | 8,649 | ||||
| Taxes payable | 45,352 | 63,724 | ||||
| Other payables | 106,304 | 56,250 | ||||
| Liabilities held for sale | — | 9,956 | ||||
| Current portion of non-current liabilities | 39,048 | 81,769 | ||||
| Other current liabilities | 9,982 | 12,608 | ||||
| Total current liabilities | 609,433 | 605,418 | ||||
| Non-current liabilities | ||||||
| Long-term borrowings | 188,460 | 160,140 | ||||
| Debentures payable | 91,223 | 91,239 | ||||
| Lease liabilities | 122,779 | 122,644 | ||||
| Provisions | 119,113 | 114,819 | ||||
| Deferred tax liabilities | 18,144 | 16,390 | ||||
| Other non-current liabilities | 9,983 | 10,865 | ||||
| Total non-current liabilities | 549,702 | 516,097 | ||||
| Total liabilities | 1,159,135 | 1,121,515 | ||||
| Shareholders’ equity | ||||||
| Share capital | 183,021 | 183,021 | ||||
| Capital surplus | 127,958 | 127,222 | ||||
| Special reserve | 12,397 | 10,810 | ||||
| Other comprehensive income | (39,247 | ) | (32,128 | ) | ||
| Surplus reserves | 203,557 | 203,557 | ||||
| Undistributed profits | 758,195 | 722,939 | ||||
| Equity attributable to equity holders of the Company | 1,245,881 | 1,215,421 | ||||
| Non-controlling interests | 142,914 | 151,464 | ||||
| Total shareholders’ equity | 1,388,795 | 1,366,885 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,547,930 | 2,488,400 | ||||
| Chairman<br><br><br>Dai Houliang | Director and President<br><br><br>Huang Yongzhang | Chief Financial Officer<br><br><br>Chai Shouping | ||||
| --- | --- | --- |
14
2. Company Balance Sheet
| September 30, 2021 | December 31, 2020 | |||
|---|---|---|---|---|
| ASSETS | RMB million | RMB million | ||
| Current assets | ||||
| Cash at bank and on hand | 63,693 | 42,787 | ||
| Accounts receivable | 12,338 | 8,412 | ||
| Receivables financing | 3,369 | 2,830 | ||
| Advances to suppliers | 15,486 | 8,861 | ||
| Other receivables | 4,702 | 14,738 | ||
| Inventories | 92,659 | 77,813 | ||
| Other current assets | 39,111 | 44,614 | ||
| Total current assets | 231,358 | 200,055 | ||
| Non-current assets | ||||
| Investments in other equity instruments | 397 | 427 | ||
| Long-term equity investments | 459,285 | 451,677 | ||
| Fixed assets | 257,360 | 264,241 | ||
| Oil and gas properties | 581,158 | 598,665 | ||
| Construction in progress | 155,660 | 142,470 | ||
| Right-of-use<br>assets | 63,239 | 66,765 | ||
| Intangible assets | 66,866 | 65,841 | ||
| Goodwill | 30 | 30 | ||
| Long-term prepaid expenses | 8,409 | 8,980 | ||
| Deferred tax assets | — | 2,008 | ||
| Other non-current assets | 17,818 | 13,524 | ||
| Total non-current assets | 1,610,222 | 1,614,628 | ||
| TOTAL ASSETS | 1,841,580 | 1,814,683 | ||
| Chairman<br><br><br>Dai Houliang | Director and President<br><br><br>Huang Yongzhang | Chief Financial Officer<br><br><br>Chai Shouping | ||
| --- | --- | --- |
15
2. Company Balance Sheet (Continued)
| September 30, 2021 | December 31, 2020 | |||
|---|---|---|---|---|
| LIABILITIES AND SHAREHOLDERS’ EQUITY | RMB million | RMB million | ||
| Current liabilities | ||||
| Short-term borrowings | 22,050 | 25,923 | ||
| Notes payable | 18,537 | 18,203 | ||
| Accounts payable | 80,091 | 99,276 | ||
| Contracts liabilities | 63,617 | 59,877 | ||
| Employee compensation payable | 14,275 | 6,559 | ||
| Taxes payable | 27,917 | 45,769 | ||
| Other payables | 122,588 | 74,496 | ||
| Current portion of non-current liabilities | 17,369 | 64,745 | ||
| Other current liabilities | 6,386 | 1,791 | ||
| Total current liabilities | 372,830 | 396,639 | ||
| Non-current liabilities | ||||
| Long-term borrowings | 99,713 | 68,829 | ||
| Debentures payable | 87,000 | 87,000 | ||
| Lease liabilities | 47,957 | 47,983 | ||
| Provisions | 84,976 | 81,941 | ||
| Deferred tax liabilities | 568 | — | ||
| Other non-current liabilities | 5,218 | 5,496 | ||
| Total non-current liabilities | 325,432 | 291,249 | ||
| Total liabilities | 698,262 | 687,888 | ||
| Shareholders’ equity | ||||
| Share capital | 183,021 | 183,021 | ||
| Capital surplus | 127,315 | 127,044 | ||
| Special reserve | 6,033 | 4,708 | ||
| Other comprehensive income | 361 | 455 | ||
| Surplus reserves | 192,465 | 192,465 | ||
| Undistributed profits | 634,123 | 619,102 | ||
| Total shareholders’ equity | 1,143,318 | 1,126,795 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,841,580 | 1,814,683 | ||
| Chairman<br><br><br>Dai Houliang | Director and President<br><br><br>Huang Yongzhang | Chief Financial Officer<br><br><br>Chai Shouping | ||
| --- | --- | --- |
16
3-1. Consolidated Income Statement
| Three months ended September 30 | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Items | RMB million | RMB million | ||||
| Operating income | 683,760 | 497,125 | ||||
| Less: Cost of sales | (551,105 | ) | (393,546 | ) | ||
| Taxes and surcharges | (60,507 | ) | (48,397 | ) | ||
| Selling expenses | (18,385 | ) | (17,068 | ) | ||
| General and administrative expenses | (14,805 | ) | (13,833 | ) | ||
| Research and development expenses | (3,706 | ) | (3,639 | ) | ||
| Finance expenses | (4,111 | ) | (5,863 | ) | ||
| Including: Interest expenses | (4,630 | ) | (5,967 | ) | ||
| Interest income | 451 | 755 | ||||
| Add: Other income | 1,479 | 2,621 | ||||
| Investment income | 4,989 | 44,643 | ||||
| Including: Income from investment in associates and joint ventures | 3,811 | 858 | ||||
| Credit losses | (68 | ) | (30 | ) | ||
| Asset impairment (losses)/ reversal | (75 | ) | 39 | |||
| Gain on asset disposal | 381 | 68 | ||||
| Operating profit | 37,847 | 62,120 | ||||
| Add: Non-operating income | 1,038 | 1,291 | ||||
| Less: Non-operating expenses | (2,699 | ) | (1,935 | ) | ||
| Profit before income tax | 36,186 | 61,476 | ||||
| Less: Income tax expenses | (10,947 | ) | (17,474 | ) | ||
| Net profit | 25,239 | 44,002 | ||||
| Classified by continuity of operations: | ||||||
| Net profit from continuous operation | 25,239 | 44,002 | ||||
| Net profit from discontinued operation | — | — | ||||
| Classified by ownership: | ||||||
| Shareholders of the Company | 22,086 | 40,050 | ||||
| Non-controlling interests | 3,153 | 3,952 | ||||
| Earnings per share | ||||||
| Basic earnings per share (RMB Yuan) | 0.121 | 0.219 | ||||
| Diluted earnings per share (RMB Yuan) | 0.121 | 0.219 | ||||
| Other comprehensive income, net of tax | (4,590 | ) | (6,711 | ) | ||
| Other comprehensive income (net of tax) attributable to equity holders of the Company | (4,757 | ) | (2,488 | ) | ||
| (1) Items that will not be reclassified to profit or loss: | ||||||
| Changes in fair value of investments in other equity instruments | 64 | 39 | ||||
| (2) Items that may be reclassified to profit or loss: | ||||||
| Other comprehensive income recognised under equity method | 242 | (233 | ) | |||
| Translation differences arising from translation of foreign currency financial statements | (5,063 | ) | (2,294 | ) | ||
| Other comprehensive income (net of tax) attributable to<br>non-controlling interests | 167 | (4,223 | ) | |||
| Total comprehensive income | 20,649 | 37,291 | ||||
| Attributable to: | ||||||
| Equity holders of the Company | 17,329 | 37,562 | ||||
| Non-controlling interests | 3,320 | (271 | ) | |||
| Chairman<br><br><br>Dai Houliang | Director and President<br><br><br>Huang Yongzhang | Chief Financial Officer<br><br><br>Chai Shouping | ||||
| --- | --- | --- |
17
3-2. Consolidated Income Statement
| Nine months ended September 30 | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Items | RMB million | RMB million | ||||
| Operating income | 1,880,341 | 1,426,170 | ||||
| Less: Cost of sales | (1,508,745 | ) | (1,163,739 | ) | ||
| Taxes and surcharges | (162,591 | ) | (146,820 | ) | ||
| Selling expenses | (50,787 | ) | (49,340 | ) | ||
| General and administrative expenses | (41,227 | ) | (38,968 | ) | ||
| Research and development expenses | (11,994 | ) | (10,414 | ) | ||
| Finance expenses | (13,321 | ) | (19,368 | ) | ||
| Including: Interest expenses | (14,824 | ) | (20,853 | ) | ||
| Interest income | 1,730 | 2,151 | ||||
| Add: Other income | 3,988 | 6,704 | ||||
| Investment income | 31,202 | 45,706 | ||||
| Including: Income from investment in associates and joint ventures | 11,244 | 1,428 | ||||
| Credit losses | (336 | ) | (381 | ) | ||
| Asset impairment losses | (549 | ) | (8,112 | ) | ||
| Gain on asset disposal | 842 | 929 | ||||
| Operating profit | 126,823 | 42,367 | ||||
| Add: Non-operating income | 1,945 | 2,751 | ||||
| Less: Non-operating expenses | (5,567 | ) | (2,165 | ) | ||
| Profit before income tax | 123,201 | 42,953 | ||||
| Less: Income tax expenses | (30,146 | ) | (22,278 | ) | ||
| Net profit | 93,055 | 20,675 | ||||
| Classified by continuity of operations: | ||||||
| Net profit from continuous operation | 93,055 | 20,675 | ||||
| Net profit from discontinued operation | — | — | ||||
| Classified by ownership: | ||||||
| Shareholders of the Company | 75,122 | 10,064 | ||||
| Non-controlling interests | 17,933 | 10,611 | ||||
| Earnings per share | ||||||
| Basic earnings per share (RMB Yuan) | 0.410 | 0.055 | ||||
| Diluted earnings per share (RMB Yuan) | 0.410 | 0.055 | ||||
| Other comprehensive income, net of tax | (7,772 | ) | (7,144 | ) | ||
| Other comprehensive income (net of tax) attributable to equity holders of the Company | (7,119 | ) | (3,802 | ) | ||
| (1) Items that will not be reclassified to profit or loss: | ||||||
| Changes in fair value of investments in other equity instruments | 65 | (27 | ) | |||
| (2) Items that may be reclassified to profit or loss: | ||||||
| Other comprehensive income recognised under equity method | 173 | (158 | ) | |||
| Translation differences arising from translation of foreign currency financial statements | (7,357 | ) | (3,617 | ) | ||
| Other comprehensive income (net of tax) attributable to<br>non-controlling interests | (653 | ) | (3,342 | ) | ||
| Total comprehensive income | 85,283 | 13,531 | ||||
| Attributable to: | ||||||
| Equity holders of the Company | 68,003 | 6,262 | ||||
| Non-controlling interests | 17,280 | 7,269 | ||||
| Chairman<br><br><br>Dai Houliang | Director and President<br><br><br>Huang Yongzhang | Chief Financial Officer<br><br><br>Chai Shouping | ||||
| --- | --- | --- |
18
4-1. Income Statement
| Three months ended September 30 | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Items | RMB million | RMB million | ||||
| Operating income | 355,661 | 287,879 | ||||
| Less: Cost of sales | (260,260 | ) | (223,164 | ) | ||
| Taxes and surcharges | (45,976 | ) | (37,672 | ) | ||
| Selling expenses | (12,799 | ) | (12,396 | ) | ||
| General and administrative expenses | (9,394 | ) | (8,259 | ) | ||
| Research and development expenses | (2,632 | ) | (2,614 | ) | ||
| Finance expenses | (3,512 | ) | (5,201 | ) | ||
| Including: Interest expenses | (3,610 | ) | (3,581 | ) | ||
| Interest income | 195 | 375 | ||||
| Add: Other income | 1,329 | 1,815 | ||||
| Investment income | 5,679 | 88,592 | ||||
| Including: Income from investment in associates and joint ventures | 2,884 | 1,194 | ||||
| Credit losses | (85 | ) | (22 | ) | ||
| Asset impairment (losses)/reversal | (59 | ) | 7 | |||
| Gains on asset disposal | 369 | 336 | ||||
| Operating profit | 28,321 | 89,301 | ||||
| Add: Non-operating income | 741 | 1,095 | ||||
| Less: Non-operating expenses | (2,182 | ) | (1,618 | ) | ||
| Profit before income tax | 26,880 | 88,778 | ||||
| Less: Income tax expenses | (6,198 | ) | (18,133 | ) | ||
| Net profit | 20,682 | 70,645 | ||||
| Classified by continuity of operations: | ||||||
| Net profit from continuous operation | 20,682 | 70,645 | ||||
| Net profit from discontinued operation | — | — | ||||
| Earnings per share | ||||||
| Basic earnings per share (RMB Yuan) | 0.113 | 0.386 | ||||
| Diluted earnings per share (RMB Yuan) | 0.113 | 0.386 | ||||
| Other comprehensive income, net of tax | 36 | (283 | ) | |||
| Other comprehensive income attributable to equity shareholders of the Company, net of tax | 36 | (283 | ) | |||
| (1) Items that will not be reclassified to profit or loss: | ||||||
| Changes in fair value of investments in other equity instruments | 3 | 21 | ||||
| (2) Items that may be reclassified to profit or loss: | ||||||
| Other comprehensive income recognised under equity method | 33 | (304 | ) | |||
| Total comprehensive income | 20,718 | 70,362 | ||||
| Chairman<br><br><br>Dai Houliang | Director and President<br><br><br>Huang Yongzhang | Chief Financial Officer<br><br><br>Chai Shouping | ||||
| --- | --- | --- |
19
4-2. Income Statement
| Nine months ended September 30 | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Items | RMB million | RMB million | ||||
| Operating income | 1,016,474 | 801,995 | ||||
| Less: Cost of sales | (757,839 | ) | (650,293 | ) | ||
| Taxes and surcharges | (126,404 | ) | (114,510 | ) | ||
| Selling expenses | (35,080 | ) | (34,609 | ) | ||
| General and administrative expenses | (26,570 | ) | (24,318 | ) | ||
| Research and development expenses | (9,729 | ) | (8,250 | ) | ||
| Finance expenses | (11,207 | ) | (16,304 | ) | ||
| Including: Interest expenses | (11,326 | ) | (14,797 | ) | ||
| Interest income | 456 | 726 | ||||
| Add: Other income | 2,927 | 5,016 | ||||
| Investment income | 19,445 | 106,318 | ||||
| Including: Income from investment in associates and joint ventures | 8,423 | 2,586 | ||||
| Credit losses | (113 | ) | (161 | ) | ||
| Asset impairment losses | (95 | ) | (1,960 | ) | ||
| Gains on asset disposal | 792 | 1,192 | ||||
| Operating profit | 72,601 | 64,116 | ||||
| Add: Non-operating income | 1,433 | 2,217 | ||||
| Less: Non-operating expenses | (4,603 | ) | (4,414 | ) | ||
| Profit before income tax | 69,431 | 61,919 | ||||
| Less: Income tax expenses | (14,544 | ) | (12,022 | ) | ||
| Net profit | 54,887 | 49,897 | ||||
| Classified by continuity of operations: | ||||||
| Net profit from continuous operation | 54,887 | 49,897 | ||||
| Net profit from discontinued operation | — | — | ||||
| Earnings per share | ||||||
| Basic earnings per share (RMB Yuan) | 0.300 | 0.273 | ||||
| Diluted earnings per share (RMB Yuan) | 0.300 | 0.273 | ||||
| Other comprehensive income, net of tax | (93 | ) | (256 | ) | ||
| Other comprehensive income attributable to equity shareholders of the Company, net of tax | (93 | ) | (256 | ) | ||
| (1) Items that will not be reclassified to profit or loss: | ||||||
| Changes in fair value of investments in other equity instruments | (23 | ) | (27 | ) | ||
| (2) Items that may be reclassified to profit or loss: | ||||||
| Other comprehensive income recognised under equity method | (70 | ) | (229 | ) | ||
| Total comprehensive income | 54,794 | 49,641 | ||||
| Chairman<br><br><br>Dai Houliang | Director and President<br><br><br>Huang Yongzhang | Chief Financial Officer<br><br><br>Chai Shouping | ||||
| --- | --- | --- |
20
5. Consolidated Cash Flow Statement
| Nine months ended September 30 | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Items | RMB million | RMB million | ||||
| Cash flows from operating activities | ||||||
| Cash received from sales of goods and rendering of services | 2,185,778 | 1,587,335 | ||||
| Cash received relating to other operating activities | 5,013 | 7,164 | ||||
| Sub-total of cash inflows | 2,190,791 | 1,594,499 | ||||
| Cash paid for goods and services | (1,593,822 | ) | (1,095,006 | ) | ||
| Cash paid to and on behalf of employees | (99,935 | ) | (94,449 | ) | ||
| Payments of various taxes | (248,692 | ) | (220,111 | ) | ||
| Cash paid relating to other operating activities | (21,595 | ) | (21,630 | ) | ||
| Sub-total of cash outflows | (1,964,044 | ) | (1,431,196 | ) | ||
| Net cash flows from operating activities | 226,747 | 163,303 | ||||
| Cash flows from investing activities | ||||||
| Cash received from disposal of investments | 20,339 | 276 | ||||
| Cash received from returns on investments | 13,829 | 3,701 | ||||
| Net cash received from disposal of fixed assets, oil and gas properties, intangible assets and<br>other long-term assets | 2,881 | 251 | ||||
| Net cash received from disposal of subsidiaries and other business units | 33,457 | — | ||||
| Sub-total of cash inflows | 70,506 | 4,228 | ||||
| Cash paid to acquire fixed assets, oil and gas properties, intangible assets and other long-term<br>assets | (169,952 | ) | (167,035 | ) | ||
| Cash paid to acquire investments | (29,618 | ) | (14,639 | ) | ||
| Sub-total of cash outflows | (199,570 | ) | (181,674 | ) | ||
| Net cash flows used for investing activities | (129,064 | ) | (177,446 | ) | ||
| Cash flows from financing activities | ||||||
| Cash received from capital contributions | 4 | 143 | ||||
| Including: Cash received from non-controlling<br>interests’ capital contributions to subsidiaries | 4 | 143 | ||||
| Cash received from borrowings | 614,821 | 831,465 | ||||
| Sub-total of cash inflows | 614,825 | 831,608 | ||||
| Cash repayments of borrowings | (605,680 | ) | (774,579 | ) | ||
| Cash payments for interest expenses and distribution of dividends or profits | (43,487 | ) | (41,253 | ) | ||
| Including: Subsidiaries’ cash payments for distribution of dividends or profits to non-controlling interests | (15,107 | ) | (14,172 | ) | ||
| Cash payments relating to other financing activities | (8,551 | ) | (10,973 | ) | ||
| Sub-total of cash outflows | (657,718 | ) | (826,805 | ) | ||
| Net cash flows (used for)/from financing activities | (42,893 | ) | 4,803 | |||
| Effect of foreign exchange rate changes on cash and cash equivalents | (841 | ) | (1,546 | ) | ||
| Net increase/(decrease) in cash and cash equivalents | 53,949 | (10,886 | ) | |||
| Add: Cash and cash equivalents at beginning of the period | 118,631 | 86,409 | ||||
| Cash and cash equivalents at end of the period | 172,580 | 75,523 | ||||
| Chairman<br><br><br>Dai Houliang | Director and President<br><br><br>Huang Yongzhang | Chief Financial Officer<br><br><br>Chai Shouping | ||||
| --- | --- | --- |
21
6. Company Cash Flow Statement
| Nine months ended September 30 | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Items | RMB million | RMB million | ||||
| Cash flows from operating activities | ||||||
| Cash received from sales of goods and rendering of services | 1,276,465 | 880,264 | ||||
| Cash received relating to other operating activities | 4,049 | 5,049 | ||||
| Sub-total of cash inflows | 1,280,514 | 885,313 | ||||
| Cash paid for goods and services | (823,672 | ) | (540,116 | ) | ||
| Cash paid to and on behalf of employees | (71,981 | ) | (66,645 | ) | ||
| Payments of various taxes | (202,874 | ) | (162,965 | ) | ||
| Cash paid relating to other operating activities | (18,822 | ) | (26,627 | ) | ||
| Sub-total of cash outflows | (1,117,349 | ) | (796,353 | ) | ||
| Net cash flows from operating activities | 163,165 | 88,960 | ||||
| Cash flows from investing activities | ||||||
| Cash received from disposal of investments | 5,543 | 13,510 | ||||
| Cash received from returns on investments | 28,433 | 18,011 | ||||
| Net cash received from disposal of fixed assets, oil and gas properties, intangible assets and<br>other long-term assets | 2,772 | 241 | ||||
| Sub-total of cash inflows | 36,748 | 31,762 | ||||
| Cash paid to acquire fixed assets, oil and gas properties, intangible assets and other long-term<br>assets | (118,025 | ) | (105,675 | ) | ||
| Cash paid to acquire investments | (8,104 | ) | (18,917 | ) | ||
| Sub-total of cash outflows | (126,129 | ) | (124,592 | ) | ||
| Net cash flows used for investing activities | (89,381 | ) | (92,830 | ) | ||
| Cash flows from financing activities | ||||||
| Cash received from borrowings | 131,844 | 269,474 | ||||
| Sub-total of cash inflows | 131,844 | 269,474 | ||||
| Cash repayments of borrowings | (152,311 | ) | (236,068 | ) | ||
| Cash payments for interest expenses and distribution of dividends or profits | (26,533 | ) | (23,550 | ) | ||
| Cash payments relating to other financing activities | (3,878 | ) | (5,535 | ) | ||
| Sub-total of cash outflows | (182,722 | ) | (265,153 | ) | ||
| Net cash flows (used for)/from financing activities | (50,878 | ) | 4,321 | |||
| Net increase in cash and cash equivalents | 22,906 | 451 | ||||
| Add: Cash and cash equivalents at beginning of the period | 40,787 | 4,636 | ||||
| Cash and cash equivalents at end of the period | 63,693 | 5,087 | ||||
| Chairman<br><br><br>Dai Houliang | Director and President<br><br><br>Huang Yongzhang | Chief Financial Officer<br><br><br>Chai Shouping | ||||
| --- | --- | --- |
22
B. Financial statements for the third quarter of 2021 prepared in accordance with IFRS
1-1. Consolidated Statement of Comprehensive Income
| Three months ended September 30 | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| RMB million | RMB million | |||||
| REVENUE | 683,760 | 497,125 | ||||
| OPERATING EXPENSES | ||||||
| Purchases, services and other | (481,620 | ) | (321,763 | ) | ||
| Employee compensation costs | (40,860 | ) | (34,931 | ) | ||
| Exploration expenses, including exploratory dry holes | (2,721 | ) | (4,424 | ) | ||
| Depreciation, depletion and amortisation | (47,471 | ) | (51,001 | ) | ||
| Selling, general and administrative expenses | (15,328 | ) | (15,929 | ) | ||
| Taxes other than income taxes | (60,853 | ) | (48,713 | ) | ||
| Other income net ^(Note)^ | 1,393 | 45,960 | ||||
| TOTAL OPERATING EXPENSES | (647,460 | ) | (430,801 | ) | ||
| PROFIT FROM OPERATIONS | 36,300 | 66,324 | ||||
| FINANCE COSTS | ||||||
| Exchange gain | 2,332 | 3,962 | ||||
| Exchange loss | (2,075 | ) | (4,456 | ) | ||
| Interest income | 451 | 755 | ||||
| Interest expense | (4,630 | ) | (5,967 | ) | ||
| TOTAL NET FINANCE COSTS | (3,922 | ) | (5,706 | ) | ||
| SHARE OF PROFIT OF ASSOCIATES AND JOINT VENTURES | 3,811 | 858 | ||||
| PROFIT BEFORE INCOME TAX EXPENSE | 36,189 | 61,476 | ||||
| INCOME TAX EXPENSE | (10,947 | ) | (17,474 | ) | ||
| PROFIT FOR THE PERIOD | 25,242 | 44,002 | ||||
| OTHER COMPREHENSIVE INCOME | ||||||
| Items that will not be reclassified to profit or loss: | ||||||
| Fair value changes in equity investment measured at fair value through other comprehensive<br>income | 64 | 146 | ||||
| Items that are or may be reclassified subsequently to profit or loss: | ||||||
| Currency translation differences | (4,896 | ) | (6,624 | ) | ||
| Share of the other comprehensive income of associates and joint ventures accounted for using the<br>equity method | 242 | (233 | ) | |||
| OTHER COMPREHENSIVE INCOME, NET OF TAX | (4,590 | ) | (6,711 | ) | ||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 20,652 | 37,291 | ||||
| PROFIT FOR THE PERIOD ATTRIBUTABLE TO: | ||||||
| Owners of the Company | 22,089 | 40,050 | ||||
| Non-controlling interests | 3,153 | 3,952 | ||||
| 25,242 | 44,002 | |||||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: | ||||||
| Owners of the Company | 17,332 | 37,562 | ||||
| Non-controlling interests | 3,320 | (271 | ) | |||
| 20,652 | 37,291 | |||||
| BASIC AND DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY (RMBYUAN) | 0.121 | 0.219 |
Note:The other income net changed significantly, which was mainly affected by the recognition of pipeline restructuring income in the third quarter of last year.
23
1-2. Consolidated Statement of Comprehensive Income
| Nine months ended September 30 | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| RMB million | RMB million | |||||
| REVENUE | 1,880,341 | 1,426,170 | ||||
| OPERATING EXPENSES | ||||||
| Purchases, services and other | (1,290,552 | ) | (948,951 | ) | ||
| Employee compensation costs (Note) | (107,688 | ) | (95,677 | ) | ||
| Exploration expenses, including exploratory dry holes | (13,862 | ) | (14,993 | ) | ||
| Depreciation, depletion and amortisation | (155,826 | ) | (165,389 | ) | ||
| Selling, general and administrative expenses | (45,654 | ) | (45,812 | ) | ||
| Taxes other than income taxes | (163,264 | ) | (147,644 | ) | ||
| Other income net | 21,268 | 52,577 | ||||
| TOTAL OPERATING EXPENSES | (1,755,578 | ) | (1,365,889 | ) | ||
| PROFIT FROM OPERATIONS | 124,763 | 60,281 | ||||
| FINANCE COSTS | ||||||
| Exchange gain | 10,139 | 10,371 | ||||
| Exchange loss | (9,847 | ) | (10,422 | ) | ||
| Interest income | 1,730 | 2,151 | ||||
| Interest expense | (14,824 | ) | (20,853 | ) | ||
| TOTAL NET FINANCE COSTS | (12,802 | ) | (18,753 | ) | ||
| SHARE OF PROFIT OF ASSOCIATES AND JOINT VENTURES | 11,244 | 1,428 | ||||
| PROFIT BEFORE INCOME TAX EXPENSE | 123,205 | 42,956 | ||||
| INCOME TAX EXPENSE | (30,146 | ) | (22,278 | ) | ||
| PROFIT FOR THE PERIOD | 93,059 | 20,678 | ||||
| OTHER COMPREHENSIVE INCOME | ||||||
| Items that will not be reclassified to profit or loss: | ||||||
| Fair value changes in equity investment measured at fair value through other comprehensive<br>income | 79 | 82 | ||||
| Items that are or may be reclassified subsequently to profit or loss: | ||||||
| Currency translation differences | (8,024 | ) | (7,068 | ) | ||
| Share of the other comprehensive income of associates and joint ventures accounted for using the<br>equity method | 173 | (158 | ) | |||
| OTHER COMPREHENSIVE INCOME, NET OF TAX | (7,772 | ) | (7,144 | ) | ||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 85,287 | 13,534 | ||||
| PROFIT FOR THE PERIOD ATTRIBUTABLE TO: | ||||||
| Owners of the Company | 75,126 | 10,067 | ||||
| Non-controlling interests | 17,933 | 10,611 | ||||
| 93,059 | 20,678 | |||||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: | ||||||
| Owners of the Company | 68,007 | 6,265 | ||||
| Non-controlling interests | 17,280 | 7,269 | ||||
| 85,287 | 13,534 | |||||
| BASIC AND DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY (RMBYUAN) | 0.410 | 0.055 |
Note: The increase in employee expenses was mainly due to the impact of phased social insurance preferential policies last year and the linkage change of employee salary with benefits this year.
24
2. Consolidated Statement of Financial Position
| September 30, 2021 | December 31, 2020 | |||||
|---|---|---|---|---|---|---|
| RMB million | RMB million | |||||
| NON-CURRENT ASSETS | ||||||
| Property, plant and equipment | 1,430,415 | 1,452,091 | ||||
| Investments in associates and joint ventures | 263,160 | 250,603 | ||||
| Equity investments measured at fair value through other comprehensive income | 1,091 | 902 | ||||
| Right-of-use<br>assets | 206,495 | 209,786 | ||||
| Intangible and other non-current assets | 76,606 | 67,494 | ||||
| Deferred tax assets | 12,206 | 11,364 | ||||
| Time deposits with maturities over one year | 9,745 | 9,119 | ||||
| TOTAL NON-CURRENT ASSETS | 1,999,718 | 2,001,359 | ||||
| CURRENT ASSETS | ||||||
| Inventories | 147,957 | 128,539 | ||||
| Accounts receivable | 87,366 | 52,325 | ||||
| Prepayments and other current assets | 103,483 | 109,262 | ||||
| Notes receivable | 4,130 | 8,076 | ||||
| Time deposits with maturities over three months but within one year | 32,426 | 27,319 | ||||
| Cash and cash equivalents | 172,580 | 118,631 | ||||
| Assets held for sale | — | 42,615 | ||||
| TOTAL CURRENT ASSETS | 547,942 | 486,767 | ||||
| CURRENT LIABILITIES | ||||||
| Accounts payable and accrued liabilities | 369,903 | 316,140 | ||||
| Contract liabilities | 89,632 | 91,477 | ||||
| Income taxes payable | 6,479 | 3,730 | ||||
| Other taxes payable | 38,873 | 59,994 | ||||
| Short-term borrowings | 97,704 | 117,542 | ||||
| Lease liabilities | 6,842 | 6,579 | ||||
| Liabilities directly associated with the assets held for sale | — | 9,956 | ||||
| TOTAL CURRENT LIABILITIES | 609,433 | 605,418 | ||||
| NET CURRENT LIABILITIES | (61,491 | ) | (118,651 | ) | ||
| TOTAL ASSETS LESS CURRENT LIABILITIES | 1,938,227 | 1,882,708 | ||||
| EQUITY | ||||||
| EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY: | **** | |||||
| Share capital | 183,021 | 183,021 | ||||
| Retained earnings | 763,215 | 727,955 | ||||
| Reserves | 299,386 | 304,182 | ||||
| TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY | 1,245,622 | 1,215,158 | ||||
| NON-CONTROLLING INTERESTS | 142,913 | 151,463 | ||||
| TOTAL EQUITY | 1,388,535 | 1,366,621 | ||||
| NON-CURRENT LIABILITIES | ||||||
| Long-term borrowings | 279,683 | 251,379 | ||||
| Asset retirement obligations | 119,113 | 114,819 | ||||
| Lease liabilities | 122,779 | 122,644 | ||||
| Deferred tax liabilities | 18,134 | 16,380 | ||||
| Other long-term obligations | 9,983 | 10,865 | ||||
| TOTAL NON-CURRENT LIABILITIES | 549,692 | 516,087 | ||||
| TOTAL EQUITY AND NON-CURRENT LIABILITIES | 1,938,227 | 1,882,708 |
25
| 3. | Consolidated Statement of Cash Flows | |||||
|---|---|---|---|---|---|---|
| Nine months ended September 30 | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| 2021 | 2020 | |||||
| RMB million | RMB million | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Profit for the period | 93,059 | 20,678 | ||||
| Adjustments for: | ||||||
| Income tax expense | 30,146 | 22,278 | ||||
| Depreciation, depletion and amortisation | 155,826 | 165,389 | ||||
| Capitalised exploratory costs charged to expense | 5,574 | 7,112 | ||||
| Safety fund reserve | 1,657 | 2,063 | ||||
| Share of profit of associates and joint ventures | (11,244 | ) | (1,428 | ) | ||
| Accrual of provision for impairment of receivables, net | 336 | 381 | ||||
| Write down in inventories, net | 59 | 8,112 | ||||
| Impairment of other non-current assets | 490 | — | ||||
| Loss on disposal and scrap of property, plant and equipment | 576 | 2,765 | ||||
| Gain on disposal and scrap of other non-current<br>assets | (524 | ) | (44,627 | ) | ||
| Gain on disposal of subsidiaries | (18,928 | ) | — | |||
| Dividend income | (17 | ) | (18 | ) | ||
| Interest income | (1,730 | ) | (2,151 | ) | ||
| Interest expense | 14,824 | 20,853 | ||||
| Changes in working capital: | ||||||
| Accounts receivable, prepayments and other current<br><br><br>assets | (34,293 | ) | (26,998 | ) | ||
| Inventories | (19,477 | ) | 13,240 | |||
| Accounts payable and accrued liabilities | 35,683 | (19,555 | ) | |||
| Contract liabilities | (1,845 | ) | 10,826 | |||
| CASH FLOWS GENERATED FROM OPERATIONS | 250,172 | 178,920 | ||||
| Income taxes paid | (23,425 | ) | (15,617 | ) | ||
| NET CASH FLOWS FROM OPERATING ACTIVITIES | 226,747 | 163,303 |
26
| 3. | Consolidated Statement of Cash Flows (Continued) | |||||
|---|---|---|---|---|---|---|
| Nine months ended September 30 | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| 2021 | 2020 | |||||
| RMB million | RMB million | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Capital expenditures | (169,378 | ) | (160,816 | ) | ||
| Acquisition of investments in associates and joint ventures | (3,546 | ) | (1,411 | ) | ||
| Prepayments on long-term leases | (81 | ) | (2,233 | ) | ||
| Acquisition of intangible assets and other non-current<br>assets | (493 | ) | (3,986 | ) | ||
| Proceeds from disposal of property, plant and equipment | 2,546 | 235 | ||||
| Acquisition of subsidiaries | — | (76 | ) | |||
| Proceeds from disposal of investments and investments in associates | 33,457 | — | ||||
| Proceeds from disposal of other non-current<br>assets | 335 | 85 | ||||
| Interest received | 1,944 | 2,036 | ||||
| Dividends received | 11,885 | 1,665 | ||||
| Increase in time deposits with maturities over three months | (5,733 | ) | (12,945 | ) | ||
| NET CASH FLOWS USED FOR INVESTING ACTIVITIES | (129,064 | ) | (177,446 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Repayments of short-term borrowings | (566,376 | ) | (597,474 | ) | ||
| Repayments of long-term borrowings | (39,304 | ) | (177,105 | ) | ||
| Repayments of lease liabilities | (8,551 | ) | (10,971 | ) | ||
| Interest paid | (10,410 | ) | (13,691 | ) | ||
| Dividends paid to non-controlling interests | (15,107 | ) | (14,172 | ) | ||
| Dividends paid to owners of the Company | (17,970 | ) | (13,390 | ) | ||
| Purchase of non-controlling interests | — | (2 | ) | |||
| Increase in short-term borrowings | 517,860 | 624,275 | ||||
| Increase in long-term borrowings | 96,961 | 207,190 | ||||
| Cash contribution from non-controlling interests | 4 | 143 | ||||
| NET CASH FLOWS (USED FOR)/FROM FINANCING ACTIVITIES | (42,893 | ) | 4,803 | |||
| TRANSLATION OF FOREIGN CURRENCY | (841 | ) | (1,546 | ) | ||
| Increase/(decrease) in cash and cash equivalents | 53,949 | (10,886 | ) | |||
| Cash and cash equivalents at beginning of the period | 118,631 | 86,409 | ||||
| Cash and cash equivalents at end of the period | 172,580 | 75,523 |
27
| 4. | Segment Information | |||||
|---|---|---|---|---|---|---|
| Nine months ended September 30 | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| 2021 | 2020 | |||||
| RMB million | RMB million | |||||
| Revenue | ||||||
| Exploration and Production | ||||||
| Intersegment sales | 405,980 | 316,781 | ||||
| Revenue from external customers | 81,499 | 70,757 | ||||
| 487,479 | 387,538 | |||||
| Refining and Chemicals | ||||||
| Intersegment sales | 461,359 | 379,410 | ||||
| Revenue from external customers | 244,452 | 199,194 | ||||
| 705,811 | 578,604 | |||||
| Marketing | ||||||
| Intersegment sales | 275,318 | 206,737 | ||||
| Revenue from external customers | 1,282,311 | 923,279 | ||||
| 1,557,629 | 1,130,016 | |||||
| Natural Gas and Pipeline | ||||||
| Intersegment sales | 14,040 | 26,244 | ||||
| Revenue from external customers | 270,983 | 232,154 | ||||
| 285,023 | 258,398 | |||||
| Head Office and Other | ||||||
| Intersegment sales | 107 | 952 | ||||
| Revenue from external customers | 1,096 | 786 | ||||
| 1,203 | 1,738 | |||||
| Total revenue from external customers | 1,880,341 | 1,426,170 | ||||
| Profit / (loss) from operations | ||||||
| Exploration and Production | 58,369 | 20,000 | ||||
| Refining and Chemicals | 31,990 | (1,668 | ) | |||
| Marketing | 8,776 | (4,936 | ) | |||
| Natural Gas and Pipeline | 36,715 | 57,707 | ||||
| Head Office and Other | (11,087 | ) | (10,822 | ) | ||
| 124,763 | 60,281 |
28
EX-99.2
Exhibit 99.2
<br><br> <br>新 闻 稿<br><br><br>Press Release |
中 国 石 油 天 然 气 股 份 有 <br>限 公 司 | |
|---|---|---|
| P e t r o C h i n a C o m p a n y L i m i t e d | ||
| 中国北京东城区东直门北大街 9 号<br><br><br>邮编:100007<br> <br>电话:86-10-59986687<br><br><br>传真:86-10-62099557 | 9 Dongzhimen North Street, Dongcheng<br> <br>District,<br>Beijing, 100007, P. R. China<br> <br>TEL: 86-10-59986687<br><br><br>FAX: 86-10-62099557 |
PetroChina Recorded Net Profit over RMB75 Billion
in the First Three Quarters of 2021
Adhered to High-Quality Development Value of the Company Continued to Improve
(Beijing, 28 October 2021) – PetroChina Company Limited (“PetroChina” or “the Company”, HKSE: 00857; NYSE: PTR; SSE: 601857) announced that the Company pushed forward its green and low-carbon transformation, production and operation, reform and innovation, and ESG control in the first three quarters of 2021, grasping the favorable opportunities arising from China’s rapid economic recovery, the rebound of the oil and gas market demand and the rise in international oil prices. The oil and gas industry chains maintained stable, and the development quality and efficiency were greatly enhanced. All segments continued to improve their quality and efficiency, and remained profitable.
In the first three quarters of 2021, according to IFRS, the Company achieved a revenue of RMB1,880.34 billion, representing an increase of 31.8% year-on-year. The net profit attributable to owners of the Company amounted to RMB75.13 billion, representing an increase of 646.3% year-on-year and a two-year average growth rate of 42%. The substantial growth in free cash flows enabled the Company to maintain a sound financial position and its leading position in the industry.
1
Results Review
The Company attached great importance to green and low-carbon transformation and development, included green and low-carbon to the five development strategies, gave full play to its comparative advantages in green and low-carbon transformation, coordinated development and safety, pace of growth and efficiency, speeded up the development layout pragmatically, and promoted the development of new energy businesses including hydrogen and photovoltaics in an orderly manner.
Continued to promote high-efficient exploration and development, significantly increased operating profits: The Company relied on technological innovation, implemented the strategy of “stabilizing oil and increasing gas”, vigorously promoted effective exploration with an aim to increasing the economically recoverable reserves, constantly facilitated stable production in mature oil and gas fields and efficient production construction in new areas, fully capitalized on its advantages in resources, maintained a steady growth in crude oil production and rapid growth in natural gas production, and orderly expanded the deployment of new energy business. In the first three quarters of 2021, domestic crude oil output of the Company amounted to 562 million barrels, representing an increase of 0.3% year-on-year; domestic marketable natural gas output reached 3.14 trillion cubic feet, representing an increase of 7.9% year-on-year. Domestic oil and gas equivalent output reached 1.085 billion barrels, representing an increase of 3.8% year-on-year. Exploration and Production business achieved an operating profit of RMB58.369 billion, representing an increase of 191.8%year-on-year.
Being market oriented, effectivelycontrolled oil products production and increased chemical products production: The Company optimized its product structure in line with market demand in a timely manner, vigorously controlled oil products production and increased chemical products production, maintained a high utilization rate of ethylene and other key chemical units. Changqing and Tarim ethane-to-ethylene projects were successfully completed and put into operation. The Company vigorously enhanced its technological innovation and actively promoted the research and development of new products and new materials. In the first three quarters of 2021, the processing volume of crude oil was 912 million barrels, representing an increase of 3.9% year-on-year; the production of gasoline, kerosene and diesel was 81.327 million tons, representing an increase of 1.4% year-on-year; the commodity volume of chemical products was 22.695 million tons, representing an increase of 5.5% year-on-year. The Refining and Chemicals business achieved an operating profit of RMB31.90 billion, representing an increase ofRMB33.658 billion year-on-year. Within which, the chemicals business generated an operating profit of RMB11.857 billion, achievinga historical best performance.
2
Being customers centered, refined oil products sales increased in both volume andprofitability: The company continued to strengthen marketing, insisted on fined retail and strived to strengthen wholesale and direct sales; coordinated the international and domestic markets, optimized the operation of international trade business and strived to increase the overall profitability of the industrial chain; actively explored the development of “oil, gas, hydrogen, electricity and non-fuel” service platform and the first domestic integrated energy service station was officially put into operation. In the first three quarters of 2021, the Company’s domestic sales of gasoline, kerosene, and diesel were 84.106 million tons, representing an increase of 8.1% year-on-year. The Marketing business achieved an operating profit of RMB8.776 billion, representing an increase of RMB13.712 billion year-on-year.
Continued to optimize the gas resourcestructure, helped building a green and low-carbon energy supply system: The Company seized the favorable opportunity of strong domestic demand and vigorously expanded the market resulting in a substantial increase in natural gas sales; continued to optimize the gas resource structure, and strived to lower procurement costs, boosted the sales volume and profitability, providing stable and clean low-carbon energy supply for the green and low-carbon transformation of China’s economy. In the first three quarters of 2021, the sales of natural gas reached 198.721 billion cubic metres, representing an increase of 14.4% year-on-year, of which the domestic sales of natural gas amounted to 138.105 billion cubic metres, representing an increase of 16.2% year-on-year. The Natural Gas and Pipelines business achieved an operating profit of RMB36.715 billion, representing an increase of 55.1% year-on-year after excluding the impact of the gains from pipeline restructuring generated in this year and the previous year.
3
Outlook
The good operating performance of the Company in the first three quarters of 2021 is attributable to the rapid economic recovery in China, the sharp rebound in market demand and the unremitting efforts of all the employees of the Company. The Company will continue to adhere to the five major development strategies of Innovation, Resources, Market, Internationalization, Green and Low-carbon, promote self-reliance in science and technology at a higher level, actively develop business of oil, gas and new businesses, effectively promoted refining and chemicals, marketing and new materials businesses, steadily increased the supply of green, low-carbon and affordable energy, and continuously enhance the Company’s operational efficiency, market competitiveness and value creation capability, in an efforts to generate greater returns to shareholders.
4
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: petrochina@hkstrategies.com | |
| PR Agency (Domestic media): | |
| EverBloom Investment Consulting Lt. Co. | Fax: (8610) 8562 3181 |
| Di Shen | Tel: (8610) 5166 3828 |
| Email: zhongshiyou.list@everbloom.com |
5
EX-99.3
Exhibit 99.3
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)
APPOINTMENT OF VICE CHAIRMAN
RE-DESIGNATION OF DIRECTOR
AND
CHANGE OF MEMBERS OFTHE BOARD COMMITTEES
Appointment of Vice Chairman
The board of directors (the “Board”) of PetroChina Company Limited (the “Company”, together with its subsidiaries, the “Group”) is pleased to announce that Mr. Hou Qijun, a non-executive director of the Company (“Director”), was appointed as the vice chairman of the Company, with immediate effect.
Re-designation of Director
The Board is pleased to announce that, in accordance with the articles of association of the Company, the Board has resolved to re-designate Mr. Ren Lixin (“Mr. Ren”) from a non-executive Director to an executive Director, with immediate effect.
The biographical details of Mr. Ren are set out below:
Mr. Ren Lixin, aged 54, is currently a Director and senior Vice President of the Company. He concurrently serves as a member of the Party committee and a Vice President of China National Petroleum Corporation (“CNPC”). Mr. Ren is a professor-level senior engineer with a bachelor’s degree, who has rich working experience in China’s petroleum and petrochemical industry. Mr. Ren was appointed as a member of the Party committee and the vice president of Dushanzi Petrochemical Branch Company in September 2005, and was then appointed as president, deputy secretary of the Party committee and safety director of Dushanzi Petrochemical Branch Company in October 2018, and concurrently as the executive director and president of Xinjiang Dushanzi Petrochemical Co., Ltd. Mr. Ren was appointed as president and deputy secretary of the Party committee of the Refinery and Chemical Branch of the Company in March 2021. He was appointed as a member of the Party committee and a Vice President of CNPC in June 2021. Mr. Ren was appointed as a Director in October 2021.
Save as disclosed above, as at the date of this announcement, Mr. Ren (i) does not hold any directorship in any other listed companies in the past three years; (ii) has no relationship with any other director, supervisor, senior management, substantial shareholder (as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong (the “Listing Rules”)) or controlling shareholder (as defined in the Listing Rules) of the Company; and (iii) does not have any interest in the shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance of Hong Kong.
Save as disclosed above, as at the date of this announcement, there is no information on Mr. Ren that needs to be disclosed pursuant to rule 13.51(2)(h) to (v) of the Listing Rules and there are no other matters that need to be brought to the attention of the shareholders of the Company.
Pursuant to the authorization granted by the shareholders of the Company and/or the articles of association of the Company, and the emoluments and remuneration receivable by Mr. Ren as a Director and as the senior Vice President of the Company will be fixed by the Board.
Change of Members ofthe Board Committees
The Board is pleased to announce that, in consideration of the role and expertise of the Directors, the members of the Board committees have been adjusted as follows:
Investment and Development Committee: Mr. Hou Qijun as chairman, Mr. Duan Liangwei and Mr. Simon Henry as members;
Sustainable Development Committee: Mr. Huang Yongzhang as chairman, Mr. Jiao Fangzheng and Mr. Ren Lixin as members.
The chairmen and members of other Board committees remained unchanged.
By order of the Board
PetroChina Company Limited
Company Secretary
Chai Shouping
Beijing, the PRC
28 October 2021
As at the date of this announcement, the Board comprises Mr. Dai Houliang as Chairman; Mr. Hou Qijun as Vice Chairman and non-executive Director; Mr. Duan Liangwei, Mr. Liu Yuezhen and Mr. Jiao Fangzheng as non-executive Directors; Mr. Huang Yongzhang and Mr. Ren Lixin asexecutive Directors; and Ms. Elsie Leung Oi-sie, Mr. Tokuchi Tatsuhito, Mr. Simon Henry, Mr. Cai Jinyong and Mr. Jiang, Simon X. as independent non-executive Directors.
EX-99.4
Exhibit 99.4

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)
Listof Directors and their Roles and Functions
The members of the board of directors (the “Board”) of PetroChina Company Limited are set out below:
Chairman: Dai Houliang
Vice Chairmanand Non-Executive Director: Hou Qijun
Non-Executive Directors
Duan Liangwei
Liu Yuezhen
Jiao Fangzheng
Executive Director
Huang Yongzhang
Ren Lixin
Independent Non-Executive Directors
Elsie Leung Oi-sie
Tokuchi Tatsuhito
Simon Henry
Cai Jinyong
Jiang, Simon X.
The Board has established five Board Committees. The table below provides membership information of these Board Committees on which certain Board members serve:
| Board<br> <br>Committee<br><br><br>Director | NominationCommittee | Audit<br>Committee | InvestmentandDevelopmentCommittee | Examination<br>and<br>Remuneration<br>Committee | SustainableDevelopmentCommittee | |||
|---|---|---|---|---|---|---|---|---|
| Dai Houliang | C | |||||||
| Hou Qijun | C | |||||||
| Duan Liangwei | M | |||||||
| Liu Yuezhen | M | M | ||||||
| Jiao Fangzheng | M | |||||||
| Huang Yongzhang | C | |||||||
| Ren Lixin | M | |||||||
| Elsie Leung Oi-sie | C | |||||||
| Tokuchi Tatsuhito | M | |||||||
| Simon Henry | M | |||||||
| Cai Jinyong | M | C | ||||||
| Jiang, Simon X. | M | M | ||||||
| Notes: | ||||||||
| --- | --- | |||||||
| C | Chairman of the relevant Board Committees | |||||||
| M | Member of the relevant Board Committees | |||||||
| Beijing, the PRC | ||||||||
| 28 October 2021 |