OREANDA-NEWS. May 05, 2012. PetroChina Company Limited ("PetroChina" or “the Company", HKSE: 0857; NYSE: PTR; SSE: 601857) achieved stable and smooth production and operations in the first quarter of 2012 as it enhanced its management to cope with the complex and changing domestic and overseas environment. PetroChina successfully fulfilled its key operational indexes, made steady progress in the construction of key projects, engaged in the stable expansion of its overseas business, and continued to improve its safety and environmental protection. Through these efforts, PetroChina’s operational performance progressed steadily, thereby, getting off to a good start for the year, reported the press-centre of PetroChina.

In the first quarter of 2012, according to both the International Financial Reporting Standards and the Chinese Accounting Standards, net profit attributable to the owners of the Company was RMB39.153 billion, representing an increase of 5.8% as compared with the same period last year, and the basic earnings per share was RMB0.21.

In respect of its exploration and production operations, the Company gave top priority to exploration and continued to implement the “Peak Growth in Oil and Gas Reserves” Program. By drawing on the favorable opportunity posed by the increase in global oil prices, the Company actively organized production and operations. Crude oil production increased steadily, while natural gas production grew rapidly. In the first quarter of 2012, the Company produced 227.0 million barrels of crude oil, representing an increase of 3.6% as compared with the same period last year, and 710.9 billion cubic feet of marketable natural gas, representing an increase of 11.2% as compared with the same period last year. The Company also achieved 345.5 million barrels of oil and natural gas equivalent output, representing an increase of 6.1% as compared with the same period last year, of which 31.2 million barrels were overseas oil and natural gas equivalent output, representing an increase of 17.1% as compared with the same period last year. In the first quarter of 2012, the exploration and production operations realized an operating profit of RMB60,376 million, representing an increase of 31.6% as compared with the same period last year.

In respect of its refining and chemicals operations, the Company proactively responded to the impact of high and volatile crude oil prices by leveraging its advantages in the integrated refining and chemicals operation. It optimized its resource and product structure, implemented structural adjustments in a stable manner, strengthened the management of its production and operations, and achieved the steady, safe and efficient operation of its equipment facilities. In the first quarter of 2012, the Company processed 257.1 million barrels of crude oil, representing an increase of 2.8% as compared with the same period last year. The Company produced 23.025 million tons of gasoline, diesel and kerosene, representing an increase of 4.7% as compared with the same period last year, and produced 0.921 million tons of ethylene, equivalent to the amount of the same period last year. As a result of the high international crude oil prices and macro regulation and control over the prices of domestic refined oils, the refining and chemicals operations incurred an operating loss of RMB10,815 million in the first quarter of 2012, which improved to a certain extent as compared with the fourth quarter last year, of which the refining operation incurred an operating loss of RMB10,402 million and the chemicals operation incurred an operating loss of RMB413 million.

In respect of its marketing operations, faced with the changes in market conditions, the Company adopted effective marketing strategies, optimized its sales structure, and continued to improve its sales volume and market share. The volume of international trade recorded a further increase as trade revenue continued to grow. In the first quarter of 2012, the Company sold 36.500 million tons of gasoline, diesel and kerosene, representing an increase of 15.5% as compared with the same period last year. The Company’s marketing operations realized an operating profit of RMB6,064 million in the first quarter of 2012, a decrease of 21.1% as compared with the same period last year, mainly due to an increase in purchase costs. However, the Company constantly reinforced its management and control over operating expenses and improved its sale of refined products. As a result, the operating results of marketing operations for the reporting period improved substantially as compared with the fourth quarter last year.

In respect of its natural gas and pipeline operations, focusing on safe operations and improving efficiency, the Company strengthened the coordination of production, transportation, marketing and storage, as well as its management on production and operation processes. Sales volume of natural gas maintained its rapid rate of growth and key projects progressed as planned, as the Company speeded up the construction of its strategic oil and gas pipelines, key oil and gas reserve projects, and pipeline frameworks. In the first quarter of 2012, the natural gas and pipelines operations realized an operating profit of RMB1,999 million, representing a decrease of 71.0% as compared with the same period last year, as a result of the fact that the imported natural gas was sold cheaper than its imported price and the impact of higher depreciation in respect of transfer from construction in progress to fixed assets of key projects. Among others, the sale of imported natural gas and LNG incurred a loss of RMB10.2 billion.

In the second quarter of 2012, PetroChina will strengthen its confidence, achieve growth with stability, and enhance awareness of both opportunities and risks. In addition, the Company will continue to adhere to the principle of “stability, equilibrium, efficiency, controllability and coordination”. PetroChina will continue to strengthen the coordination and management of its production and operations and improve its operational efficiency and business benefits to meet the development targets for 2012.