OREANDA-NEWS. April 29, 2013. In the first quarter of 2013, PetroChina Company Limited ("PetroChina" or “the Company", HKSE: 0857; NYSE: PTR; SSE: 601857) focused on improving the quality of its development and efficiency and strengthened its scientific analysis, assessment and strategic planning abilities. The Company also focused on developing its core business of oil and gas, speeded up changing the development mode, and made continuous enhancements in its management standards. In facing sluggish market demand, the Company achieved a smooth start with stable and well controlled production and operations.

According to the Chinese Accounting Standards and the International Financial Reporting Standards, in the first quarter of this year, net profit attributable to the owners of the Company amounted to RMB36.017 billion, representing a decrease of 8% as compared with the same period of last year and an increase of 27% as compared with the fourth quarter of last year, and the basic earnings per share were RMB0.2.

In respect of its exploration and production segment, the Company continued to strengthen its efforts in exploration and development whilst intensifying the implementation of the “Peak Growth in Oil and Gas Reserves” Program. The Company continued to upgrade its standards in technological development. By organizing oil and gas production in a scientific manner, the Company achieved a steady increase in crude oil output as well as rapid growth in natural gas output. In the first quarter of 2013, the Company’s crude oil output amounted to 231 million barrels, representing an increase of 1.8% as compared with the same period of last year.

The Company’s marketable natural gas output amounted to 745.3 billion cubic feet, representing an increase of 4.8% as compared with the same period of last year. Oil and gas equivalent output amounted to 355.3 million barrels, representing an increase of 2.8% as compared with the same period of last year, of which, overseas oil and gas equivalent output amounted to 35.7 million barrels, representing an increase of 14.6% as compared with the same period of last year. In the first quarter of 2013, due to factors such as the year-on-year decline in the average realized crude, the exploration and production businesses achieved an operating profit of RMB56,983 million, representing a decrease of 5.6% as compared with the same period of last year.

In respect of its refining and chemicals segment, the Company seized the favorable opportunity arising from the launch of the new pricing mechanism for domestic refined oil products, to highlight the market orientation and efficiency principles and actively promoted the optimization of resources and its product structure. The Company also controlled its processing loads in a rational manner and strengthened its production and operations management. As a result, the Company achieved steady and efficient operation of its facilities.

In the first quarter of 2013, the Company processed 253.5 million barrels of crude oil, representing a decrease of 1.4% as compared with the same period of last year; and produced 22.758 million tons of gasoline, diesel and kerosene, representing a decrease of 1.2% as compared with the same period of last year. The refining and chemicals segment incurred an operating loss of RMB4,743 million in the first quarter of 2013, representing a reduced loss of RMB6,072 million as compared with the same period of last year. Of which, the refining business incurred an operating loss of RMB1,560 million, representing a reduced loss of RMB8,842 million as compared with the same period of last year. Due to the prolonged weakness of the petrochemicals market, the chemicals business incurred an operating loss of RMB3,183 million, representing an increased loss of RMB2,770 million as compared with the loss from operations recorded in the same period of last year.

In respect of its marketing segment, the Company was proactive in making adjustments in response to the new pricing mechanism for refined oil products. The Company strengthened its market analysis capabilities and made constant enhancements to its marketing capabilities. Meanwhile, the Company continued to optimize its sales structure, with a focus on its sales capability to end users. The Company sold 37.441 million tons of gasoline, diesel and kerosene, representing an increase of 2.6% as compared with the same period of last year, of which domestic sales volume of gasoline, diesel and kerosene decreased by 4.3% as compared with the same period of last year. In the first quarter of 2013, due to weak domestic demand for refined oil products and hence a drop in sales volume and gross profit, operating profit for the marketing business fell to RMB2,122 million, representing a decrease of 65% as compared with the same period of last year.

In respect of its natural gas and pipeline segment, the Company coordinated the balance between domestically produced gas and imported gas and was proactive in developing highly-effective markets. Meanwhile, the Company reinforced its balance between production, transportation, marketing and stockpiling, and continued to maintain rapid growth in the sales volume of natural gas. Construction of key projects progressed as planned. Due to the increase in the imported natural gas volume and its underpricing selling in domestic market, operating profit of the natural gas and pipeline segment was amounted to RMB1,100 million in the first quarter of 2013, representing a decrease of 45% as compared with the same period of last year. T

he loss of selling imported natural gas and LNG amounted to RMB14.45 billion in the first quarter of 2013.

In the second quarter of 2013, the Company will continue to be efficiency oriented, remain dedicated to improving the quality and efficiency of its growth, highlight its domestic upstream businesses, and drive its overseas operations, all to take new strides forward.

The Company will also accelerate the growth of its natural gas business, establish platforms for joint ventures and cooperation, and push the construction of strategic projects in an orderly manner. Also, by the upholding the “steady, balanced, effective, controlled and coordinated” principle, the Company will be meticulous as it organizes its production and operations to achieve steady growth so as to meet its development target for 2013.