SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2005
PETROCHINA COMPANY LIMITED
16 ANDELU, DONGCHENG DISTRICT
BEIJING, THE PEOPLE'S REPUBLIC OF CHINA, 100011
(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 X Form 40-F
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(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 X
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(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- )
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PetroChina Company Limited (the "Registrant") is furnishing under the cover
of Form 6-K, the Registrant's press release with respect to its interim earnings
results for the six months ended June 30th, 2005.
This press release 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
are, by their nature, subject to significant risks and uncertainties. These
forward-looking statements include, without limitation, statements relating to:
o the Registrant's expectation with respect to its exploration and
production capabilities for the full year 2005 and beyond;
o the anticipated effects of a proposed acquisition of certain overseas
assets from one of its affiliates;
o the Registrant's plan to improve management and operational
efficiency;
o the Registrant's expectation of realizing its full year 2005
operational and financial targets; and
o the Registrant's other future plans and prospects.
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, including, without limitation:
o fluctuations in crude oil and natural gas prices;
o failure to achieve continued exploration success;
o failure or delay in achieving production from development projects;
o failure to complete the proposed acquisition of certain overseas
assets as planned;
o change in demand for competing fuels in the target market;
o continued availability of capital and financing;
o general economic, market and business conditions;
o changes in policies, laws or regulations of the PRC and other
jurisdictions in which the Registrant and its subsidiaries conduct
business; and
o other factors beyond the Registrant's control.
We do not intend to update or otherwise revise the forward-looking
statements in this press release, 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 press release might
not occur in the way we expect, or at all.
You should not place undue reliance on any of these forward-looking
statements.
(PETROCHINA PRESS RELEASE LETTERHEARD)
PETROCHINA 2005 INTERIM EARNINGS SET A NEW RECORD
NET PROFIT REACHES RMB61.6 BILLION
AN INCREASE OF 36% YEAR ON YEAR
24 August 2005, Beijing - PetroChina Company Limited ("PetroChina" or the
"Company", SEHK: 0857; NYSE: PTR) announced today that it recorded a net profit
of RMB61.6 billion for the six months ended 30th June, 2005, representing an
increase of 36.1% from the same period of last year. Earnings per share reached
RMB0.35, which was approximately RMB0.09 higher than that for the same period of
2004.
By leveraging the continued high crude oil prices and the steadily rapid growth
of the domestic economy, the Company achieved improved operational results and a
notable increase in earnings during the first half of 2005. During the first six
months of 2005, the Company took advantage of its strength in the upstream
segment, optimized and adjusted its downstream operational structures,
accelerated pipeline constructions and enhanced business management, all of
which have contributed to the Company logging a new half year earnings record
since its listing.
"We have seen sound performance in our major business segments during the first
half of 2005. Our oil and gas exploration achieved significant breakthroughs in
both the eastern and western China regions thanks to the great efforts we have
made, while oil and gas production also saw increases. Our refinery segment
improved key
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technical indicators, the chemical segment increased both the output and sales
of major products, and our pipeline construction progressed rapidly. All these
achievements have contributed to laying a solid ground for us to reach our full
year performance target," said PetroChina President Jiang Jiemin.
For the six months ended 30th June, 2005, the Company's recorded a turnover of
RMB252.5 billion, representing an increase of 41.5% from the same period of last
year. The half-year operating profits reached RMB85.5 billion, representing a
rise of 33.1% from the same period of last year. The Board of Directors of the
Company proposed to allocate 45% of the half-year net profits for paying interim
dividend for 2005, equivalent to approximately RMB0.157719 per share.
EXPLORATION AND PRODUCTION
Since the beginning of 2005, the Company has achieved a series of milestones in
oil and gas exploration. In the Jidong tidal and shallow water areas at the
Bohai Bay Basin, the Company discovered high-yield-and-rich oilfields with
original oil in place (OOIP) exceeding 100 million tons in shallow layers that
are favorable for exploration. The discovery of such large oilfields with high
single well yield and good potential for exploration marked the Company's
encouraging breakthrough in the eastern China region in the last ten years. The
Company also discovered oil-bearing structure with OOIP exceeding 100 million
tons in Tazhong of the Tarim Basin, and made further progress in exploring the
Erdos Basin which is expected to add OOIP of approximately 200 million tons this
year. At the Xujiaweizi area of the Songliao Basin, original gas in place (OGIP)
of 100 billion cubic meters has been preliminarily discovered, while large gas
fields with potential of about 100 billion cubic meters have also been found in
the central part of the Sichuan Basin. These achievements can help the Company
to maintain a replacement ratio for crude oil reserves of
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above 100% for this year, sustain a rapid growth in its natural gas reserves,
and open up new territories for its exploration operations. The Company believes
the above discoveries, which are subject to verification by authoritative
organizations, can also help the Company to secure sustainable and steady
development with a solid base of resources.
During the first six months of 2005, the Company's oil and gas output amounted
to 481 million barrels of oil equivalent, representing an increase of 5.3% from
the same period of 2004. It produced 397 million barrels of crude oil,
representing an increase of 2.1% from the same period of 2004, and 506.4 billion
cubic feet of marketable natural gas, representing an increase of 23.4% from the
same period of 2004.
During the first half of 2005, the Company's oil and gas exploration and
production segment recorded an operating profit of RMB84.7 billion, representing
a 60.7% increase from the same period of 2004. The Company's average realized
price for crude oil rose to US$43.42 per barrel in the first half of 2005 from
US$29.76 per barrel in the first half of 2004.
REFINING AND MARKETING
In the first half of 2005, the Company's refining business maintained steady
growth through optimizing its resources allocations and business operations. The
Company processed 379 million barrels of crude oil, representing an increase of
7.4% from the same period of 2004. The total output of gasoline, diesel and
kerosene was approximately 33.33 million tons, while the sale volume of refined
products reached 38.38 million tons which represented a 15.7% increase from the
same period of 2004. The retail volume was 18.29 million tons, representing a
rise of 28.9% from the same period of 2004.
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During this period, the Company continued to expand its sales and marketing
network, especially the retail network, and to leverage the synergy of its
integrated refinery and marketing segments. The number of service stations
totaled 17,215, representing an increase of 3.2% from the same period of 2004.
The number of service stations that are owned by the Company increased 2,070,
compared to that of the first half of last year.
During the first half of 2005, the Company's refining and marketing segment
recorded an operating loss of RMB5.95 billion as the increase in ex-refinery
price for its refined products was far less than that of the crude oil price.
However, through strengthening its business management the Company improved the
segment's key technical and cost indicators, compared to the same period of
2004.
CHEMICALS AND MARKETING
In the first half of 2005, the Company's chemicals and marketing business
achieved earnings growth as it responded to market changes by increasing the
output of high-value-added products. The segment recorded an operating profit of
RMB5.756 billion, which was RMB3.803 billion higher than that of a year ago. The
output and the profitability of its major chemicals, such as ethylene, both
reached their half year record level.
During the first six months of 2005, the Company produced 941 thousand tons of
ethylene, 142 thousand tons of synthetic rubber, 1.311 million tons of synthetic
resin and 1.957 million tons of urea, representing an increase of 2.0%, 6.8%,
1.0% and 3.0%, respectively, from the same period of 2004.
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NATURAL GAS AND PIPELINE
During the first half of 2005, the construction of major oil and gas pipelines
proceeded rapidly and smoothly. The Second Shaanxi-Beijing Pipeline was put into
operation on 1st July. This gas pipeline with a trunk length of 935 kilometers
and a designed annual capacity of 12 billion cubic meters will lift effectively
the Company's capacity of supplying natural gas to Beijing and the northern
China region. By the end of May 2005, the Company completed the construction of
the Hunan Xiangtan branch of the Zhongxian-Wuhan Pipeline, marking the full
operation of the Zhongxian-Wuhan Pipeline, which comprises one trunk and three
branches. In addition, the Company made smooth progress in building auxiliary
facilities for the West-East Pipeline, aiming to boost its natural gas
transmission volume. The construction of gas compressor stations and gas
storages proceeded on track as scheduled.
During the first half of 2005, the natural gas and pipeline business recorded an
operating profit of RMB1.478 billion, representing an increase of 19.9% from the
same period of 2004.
OVERSEAS BUSINESS
In a bid to provide a new platform for the growth of its overseas business, the
Company announced on 10th June, 2005 that it would acquire certain overseas
assets from its parent China National Petroleum Corporation (CNPC). The
acquisition agreement and transfer agreement were duly passed by the independent
shareholders at the Extraordinary General Meeting of the Company held on 16th
August, 2005. The transactions will boost rapidly the size of the Company's
overseas business, increase the scope and potential of its overseas oil and
natural
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gas resources and further enhance corporate value. Following the above
overseas business integration, according to the basis of 2004, the Company's
total oil and gas reserves will increase by 4.31% and total oil and gas output
will rise by 5.41%.
PROSPECTS FOR THE SECOND HALF OF 2005
Looking forward into the second half of 2005, the Company will closely monitor
market changes and the economic environment. It will continue to accelerate
building oil and gas reserves and increasing production capacity to further
improve its ability of securing resources. The Company will also continue to
streamline refinery and chemical productions to improve efficiency; undertake
international projects to further explore new business territories; encourage
technology innovation to enhance efficiency and profitability; and develop its
internal control and HSE systems. The Company is confident in realizing its
full-year operational and financial targets in a bid to achieve sustainable,
effective and rapid growth in the long run.
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Issued by PetroChina Company Limited.
For further information, please contact:
Mr. Mao Zefeng, Assistant Secretary to the Board of Directors
Tel: (852) 2899 2010 Fax: (852) 2899 2390
Email: hko@petrochina.com.hk
Distributed through Hill & Knowlton Asia Ltd. For enquiries, please contact:
Ms. Helen Lam Fax: (852) 2576 1990
Tel: (852) 2894 6204 / 92767 7672 Email: helen.lam@hillandknowlton.com.hk
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PetroChina Company Limited
Dated: August 25, 2005 By: /s/ Li Huaiqi
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Name: Li Huaiqi
Title: Company Secretary