2021-04-21 08:32Financial Performance - PetroChina achieved a revenue of RMB 2.1 trillion in 2020, reflecting a decrease of 20% compared to the previous year due to lower oil prices and reduced demand [9]. - PetroChina's net profit for 2020 was RMB 40 billion, down 66% year-on-year, primarily impacted by the global pandemic and fluctuating oil prices [9]. - The company's operating revenue for 2020 was RMB 1,933,836 million, a decrease of 23.2% compared to RMB 2,516,810 million in 2019 [27]. - The net profit attributable to shareholders of the parent company for 2020 was RMB 19,002 million, down 58.4% from RMB 45,677 million in 2019 [27]. - The basic and diluted earnings per share for 2020 were RMB 0.10, a decrease of 58.4% from RMB 0.25 in 2019 [27]. - The company's net profit for 2020 was RMB 33.49 billion, down 50.0% from RMB 67.02 billion in 2019 [73]. - The exploration and production segment reported operating income of RMB 530.81 billion in 2020, a decline of 21.5% from RMB 676.32 billion in 2019 [73]. - The sales segment's revenue in 2020 was RMB 1,497.53 billion, down 27.8% from RMB 2,075.04 billion in 2019 [78]. - The company's total revenue for 2020 was RMB 1,875.02 billion, reflecting a decrease of 23.7% compared to the previous year [102]. Production and Operations - The company reported a total production of 1.5 billion barrels of oil equivalent in 2020, a decrease of 5% from 2019 [9]. - PetroChina's natural gas sales reached 150 billion cubic meters in 2020, representing a 5% increase year-on-year [9]. - In 2020, domestic crude oil production was 743.8 million barrels, an increase of 0.6% year-on-year, while marketable natural gas production was 3,993.8 billion cubic feet, up 9.9% year-on-year [55]. - The company's crude oil production reached 921.8 million barrels, up 1.4% from the previous year, while marketable natural gas production was 4,221.0 billion cubic feet, an increase of 8.0% [58]. - The company processed 1,177.5 million barrels of crude oil, a decline of 4.1% year-on-year, with a crude oil processing load rate of 79.9% [60]. - The total sales of gasoline, kerosene, and diesel amounted to 161,230 thousand tons, a decrease of 14.1% compared to the previous year [64]. - The company completed the delivery of relevant pipeline assets, with a total domestic oil and gas pipeline length of 31,151 kilometers by year-end [65]. Capital Expenditure and Investments - PetroChina plans to increase its capital expenditure by 10% in 2021, focusing on enhancing production capacity and technological innovation [9]. - The company's capital expenditure for 2020 was RMB 246,493 million, reflecting ongoing investment in growth despite the revenue decline [27]. - The exploration and production segment reported capital expenditures of RMB 186.62 billion in 2020, with a forecast of RMB 175.20 billion for 2021 [94][95]. - The refining and chemical segment's capital expenditures for 2020 were RMB 21.81 billion, expected to increase to RMB 38.00 billion in 2021 [96]. - The sales segment's capital expenditures in 2020 amounted to RMB 16.29 billion, with a forecast of RMB 12.20 billion for 2021 [97][99]. - The natural gas and pipeline segment had capital expenditures of RMB 21.14 billion in 2020, projected to decrease to RMB 13.00 billion in 2021 [100]. Debt and Financial Stability - PetroChina's debt-to-equity ratio stood at 60% at the end of 2020, indicating a stable financial position despite the challenging market conditions [9]. - The total liabilities as of December 31, 2020, were RMB 1,121.51 billion, a decrease of 13.0% from RMB 1,288.61 billion in 2019 [83]. - The company's net debt as of December 31, 2020, was RMB 250.29 billion, down from RMB 380.31 billion in 2019 [89]. - The capital adequacy ratio as of December 31, 2020, was 21.3%, compared to 24.4% at the end of 2019 [92]. Shareholder Returns and Dividends - PetroChina reported a total dividend of RMB 16 billion for the year 2020, with a proposed final dividend of RMB 0.08742 per share based on a total share capital of 183,020,977,818 shares [9]. - The cash dividend payout ratio for 2020 reached 168.4%, significantly exceeding the net profit of RMB 19 billion for that year [108]. - The company has maintained a cash dividend policy of at least 30% of the net profit attributable to the parent company, with a historical payout ratio of 45% since 2016 [109]. - The total cash dividends distributed over the past three years were RMB 32.724 billion in 2018, RMB 26.293 billion in 2019, and RMB 32 billion in 2020 [108]. - The proposed final dividend for 2020 is subject to approval at the annual general meeting scheduled for June 10, 2021 [111]. - The company will withhold a 10% corporate income tax on dividends paid to non-resident enterprise shareholders [112]. - The dividend payment for A-shares is scheduled for June 29, 2021, and for H-shares around July 30, 2021 [111]. Strategic Initiatives and Future Plans - The company is investing in new energy projects, aiming for a 20% increase in renewable energy output by 2025 [9]. - The company aims to optimize its marketing strategy to increase market share and sales, focusing on retail and enhancing customer service capabilities [52]. - The company will enhance risk exploration in six key areas, including shale oil and gas, aiming for strategic discoveries and breakthroughs [51]. - The company emphasizes digital transformation and green low-carbon development as part of its five major development strategies [51]. - The company is committed to reducing its carbon emissions by 30% by 2030 as part of its long-term sustainability strategy [9]. Corporate Governance and Compliance - The company has adhered to the Corporate Governance Code throughout the reporting period, with no significant deviations noted [177]. - The board of directors consists of members elected by the shareholders and is responsible for strategic guidance and effective supervision of management [179]. - The company has established a complete and independent business system, separating its operations from the controlling shareholder, China National Petroleum Corporation [175]. - The independent non-executive directors confirmed that all related party transactions were conducted under normal business terms and in the best interest of shareholders [163]. - The company has implemented a quarterly performance tracking system for senior management to ensure accountability and reward based on performance results [176]. Market and Economic Conditions - The average price of Brent crude oil in 2020 was $41.78 per barrel, a decrease of 34.9% year-on-year, while WTI averaged $39.28 per barrel, down 31.1% year-on-year [55]. - The National Development and Reform Commission announced a temporary reduction in non-residential gas costs from February 22 to June 30, 2020, to support businesses affected by the pandemic [133]. - The Ministry of Finance extended the preferential corporate income tax policy for enterprises in the western region, reducing the tax rate to 15% from January 1, 2021, to December 31, 2030 [134].