2019-04-16 08:35Financial Performance - The company's revenue for 2018 reached RMB 2,353,588 million, representing a 16.8% increase compared to RMB 2,015,890 million in 2017[15]. - Operating profit for 2018 was RMB 120,997 million, up from RMB 67,722 million in 2017, marking an increase of 78.5%[14]. - Net profit attributable to shareholders for 2018 was RMB 52,591 million, a significant increase of 130.7% from RMB 22,798 million in 2017[15]. - The total assets at the end of 2018 amounted to RMB 2,432,266 million, reflecting a 1.1% increase from RMB 2,404,612 million in 2017[14]. - The company reported a basic and diluted earnings per share of RMB 0.29 for 2018, compared to RMB 0.12 in 2017, indicating a growth of 141.7%[15]. - Cash flow from operating activities for 2018 was RMB 351,565 million, a decrease of 4.1% from RMB 366,655 million in 2017[15]. - The company's capital expenditure for 2018 was RMB 255,974 million, an increase from RMB 216,227 million in 2017[14]. - The weighted average return on equity for 2018 was 4.4%, up from 1.9% in 2017, representing an increase of 2.5 percentage points[15]. - The net profit for 2018 under International Financial Reporting Standards was RMB 72,416 million, while under Chinese Accounting Standards it was RMB 72,410 million, showing a minor difference of RMB 0.06 million[19]. Shareholder Information - The company reported a total dividend of RMB 0.09 per share for the year ending December 31, 2018, which includes a special dividend of RMB 0.02729 per share[9]. - The net profit attributable to the parent company for the second half of 2018 was 45% of the total net profit, leading to a dividend distribution of RMB 0.06271 per share[9]. - As of December 31, 2018, the total number of shareholders was 519,852, with 513,306 domestic A-share shareholders and 6,546 overseas H-share shareholders[22]. - By February 28, 2019, the number of shareholders increased to 522,571, with 516,033 domestic A-share shareholders and 6,538 overseas H-share shareholders[22]. - China National Petroleum Corporation (CNPC) held 80.87% of the shares, totaling 148,010,665,536 shares, with a decrease of 3,078,027,992 shares during the reporting period[23]. - The report noted that CNPC transferred 972,762,646 A-shares to Beijing Chengtong Holdings Group and Guoxin Investment, representing approximately 0.53% of the total share capital[24]. - The report highlighted that the shareholder structure remains stable, with no significant changes in the top ten shareholders' relationships[27]. - The cash dividend payout ratio for 2018 was 62.2% of the net profit, which was RMB 52,591 million[94]. - The company has maintained a cash dividend policy of at least 30% of the net profit attributable to the parent company[95]. Operational Highlights - The company is one of the largest oil and gas producers and sellers in China, with significant operations in exploration, development, production, and sales of crude oil and natural gas[10]. - The company operates in various segments, including refining, petrochemical production, and trading of oil products[10]. - The company plans to produce 905.9 million barrels of crude oil and 3,811.0 billion cubic feet of natural gas in 2019[35]. - The company aims to process 1,170.4 million barrels of crude oil in its refining and chemical business in 2019[35]. - The domestic crude oil production in 2018 was 18.928 million tons, a decrease of 1.1% compared to the previous year[39]. - In 2018, the company's crude oil production reached 890.3 million barrels, a slight increase of 0.4% compared to 2017[47]. - The company achieved a natural gas production of 3,607.6 billion cubic feet, representing a growth of 5.4% year-on-year[47]. - The total oil and gas equivalent production was 1,491.7 million barrels, an increase of 2.3% from the previous year[47]. - The company processed 1,122.8 million barrels of crude oil, which is a 10.4% increase compared to 1,016.9 million barrels in 2017[49]. Governance and Compliance - The company has a robust governance structure in place, with a board of directors and supervisory board overseeing its operations[9]. - The company is committed to maintaining transparency and accuracy in its financial reporting, ensuring no significant omissions or misleading statements[9]. - The company has established and effectively operates an internal control system, ensuring the accuracy and effectiveness of financial reporting[137]. - The board consists of 11 members, with at least one-third being independent non-executive directors, ensuring compliance with governance standards[145]. - The company adheres to the corporate governance code and has complied with all relevant provisions of the listing rules[143]. - The board of directors evaluated the internal control and risk management systems as effective and sufficient as of December 31, 2018[138]. - The company emphasizes transparency and has established clear procedures for shareholders to raise inquiries and proposals[178]. - The company has established 5 specialized committees to support decision-making, including the Audit Committee and the Nomination Committee[149]. - The company received independence confirmation from five independent non-executive directors, ensuring compliance with listing rules[149]. Market and Economic Factors - The average price of Brent crude oil in 2018 was $71.31 per barrel, up 31.6% from the previous year[39]. - The average price of WTI crude oil in 2018 was $65.18 per barrel, an increase of 28.3% year-on-year[39]. - The report indicated that international crude oil, refined oil, and natural gas prices are influenced by global political and economic changes, with domestic oil prices determined by international benchmarks[180]. - Natural gas consumption in China grew by 18.1% year-on-year, with an apparent consumption of 2,803 billion cubic meters[42]. - The company’s international trade operations improved, optimizing import and export resources and expanding into high-end markets[52]. Strategic Initiatives - The company plans to enhance its international business through strategic cooperation and resource integration[37]. - The company has continued its existing related party transactions with China National Petroleum Corporation, which were approved by independent shareholders and directors for the period from January 1, 2018, to December 31, 2020[115]. - The company signed agreements with ADNOC to acquire 10% interests in Umm Shaif & Nasr and Lower Zakum oil fields for $575 million and $600 million respectively, enhancing its overseas business operations[108]. - The company has a commitment to avoid competition with its controlling shareholder, China National Petroleum Group, as per an agreement signed in 2000[105]. - The company plans to enhance market competitiveness through differentiated marketing and online bidding transactions[54].