PetroChina Company Limited announced on March 22 that the company's production and operations maintained stable and under control in 2017, while operating performance increased steadily. 

As of Dec. 31, 2017, based on the International Financial Reporting Standards, the Company achieved a revenue of 2,015,890 million yuan, representing an increase of 24.7 percent as compared with last year. Net profit attributable to owners of the Company was 22,798 million yuan, representing a significant increase of 190.2 percent from the previous year. Basic earnings per share were 0.12 yuan, representing an increase of 0.08 yuan compared to 2016. Free cash flow of the Company increased by 53.29 billion yuan. The Company's financial position remained stable and healthy.

Exploration and production business made a number of important achievements

In 2017, the Company focused on seeking quality and scalable reserves in its oil and gas exploration and development business. Several important discoveries were made in oil and gas exploration: new strategic replacement reserves were developed in the Junggar Basin of Xinjiang, while Mahu area made a remarkable discovery. Tarim Basin and Sichuan Basin successively made breakthroughs in oil and gas exploration. A batch of quality and large-scale reserves that are available for production were confirmed in basins such as Erdos, Songliao and Bohai Bay. With regards to its domestic development and production activities, the Company steadily constructed crude oil production capacity in key blocks including Mahu area in Xinjiang, and optimized development plans and output structures of the old oilfields, to ensure overall development efficiency. With regards to its gas development activities, the Company seized the opportunity of the rapidly growing market demand, strengthened the stable production base of old gas fields, accelerated the release of a newly-built capacity, and proactively organized gas field production based on seasonal demands, so that gas production continued to increase. The Company's overseas oil and gas cooperation activities capitalized on the "Belt and Road" initiative and other opportunities to consolidate the development of five key oil and gas cooperation regions. The overseas oil and gas development promoted overall project research and selection with a focus on efficient exploration. It continuously optimized the development plan and reinforced development of high-margin projects to maintain stable operations of oil and gas production. 

In 2017, crude oil output of the Company reached 887 million barrels. Marketable natural gas output was 3,423.4 billion cubic feet. The oil and natural gas equivalent output amounted to 1,457.8 million barrels, including 189 million barrels from overseas operations, which accounted for 13 percent of the Company's total oil and gas equivalent output.

In 2017, the domestic exploration and production segment recorded a profit from operations of RMB15,475 million, representing an increase of 12,327 million yuan from the previous year, demonstrating a remarkable improvement in profitability.

Refining and chemicals achieved remarkable results in operation optimization and structural adjustment

In 2017, the Company adjusted and optimized the allocation of refining resources and the product structure according to market demand, reinforced the upgrade of oil products, and lowered the diesel to gasoline ratio in a reasonable manner. It also stepped up efforts in chemical production, optimized the sourcing and allocation of raw materials, increased output of high-margin products, and achieved a 4.4 percent year-on-year growth in output of chemical products. The Company also seized the market opportunity, adjusted sales strategies for chemical products in a timely manner, thereby achieving steady growth in sales volume of high-performance products and high-performance areas.

In 2017, the Company processed 1,016.9 million barrels of crude oil, up 6.7 percent year-on-year. Of these, 681.3 million barrels were processed from the Company's self-produced crude oil, accounting for 67 percent of the total processing volume, showcasing good synergy. It produced 92.715 million tons of refined oil products, up 7.8 percent year-on-year; and 5.764 million tons of ethylene, up 3.1 percent year-on-year.

In 2017, the refining and chemicals segment achieved profit from operations of 39,961 million yuan, representing an increase of 2.4 percent over the previous year.

Quality of marketing for refined products continued to improve

In 2017, the Company proactively responded to unfavorable conditions such as excess supply of resources and intensifying competition in the refined oil market by planning in tandem with the domestic and international markets, optimizing resources allocation, and ensuring the whole business chain operated smoothly while maximizing profits. The Company proactively accommodated changes in market competition and customer preferences, promoted the use of third-party payment and its smartphone app, and pushed forward thematic marketing and joint promotion. It also promoted the integrated marketing of refined products, fuel cards, non-oil business, lubricants and gas, as well as enhanced the sales ratio of high-margin products. The Company further extended its sales network and added 504 new service stations, bringing the total number of service stations of the Company to 21,399. The Company's international trading operations strengthened the coordination of production, marketing and trade, leveraged its oil and gas operating hubs, coordinated and optimized export and import resources, and proactively expanded into the high-end, high-margin markets, which further enhanced the scale and operational quality of its international trade.

In 2017, the marketing segment recorded a profit from operations of 8,279 million yuan.

Natural gas and pipeline achieved sales increase and steady profit

In 2017, according to market demand and supply of natural gas, the Company coordinated and balanced its resources allocation, transportation and sales and marketing. It fully leveraged the advantages of centralized control, strengthened its peak-load regulation capacity and undertook scientific planning of its oil and gas transportation to ensure the smooth operation of the business chain. The segment continued to develop key, high-margin markets, explored differentiated marketing, and continued to enhance the competitiveness of regional sales. The natural gas sales system covering both online and offline was preliminarily established. The segment continued to optimize the pipelines layout. Projects including Fourth Shaanxi-Beijing Gas Pipeline, Second Sino-Russian Crude Oil Pipeline and Yunnan Refined Oil Pipeline commenced operation on schedule. As at the end of 2017, the Company had 82,374 km of domestic oil and gas pipelines, including 51,315 km of natural gas pipelines, 19,670 km of crude oil pipelines and 11,389 km of refined oil product pipelines.

In 2017, the Natural Gas and Pipeline segment achieved a profit from operations of 15,688 million yuan.

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