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 March 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
--- ---
(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 the
Registrant's business performance in 2004.
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, the statements under the
heading of "Future Prospects".
These forward-looking statements reflect the Registrant's 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 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 People's Republic of
China and other jurisdictions in which the Registrant and its
subsidiaries conduct business; and
o other factors beyond the Registrant's control.
The Registrant does 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.
(PETROCHINA COMPANY LIMITED LOGO AND LETTERHEAD)
Press Release
PETROCHINA 2004 ACHIEVED RECORD HIGH NET PROFIT
OF RMB102.9 BILLION
AN INCREASE OF 47.9% YOY
16 MARCH 2005, HONG KONG - PetroChina Company Limited ("PetroChina" or the
"Company," SEHK stock code 0857; NYSE Symbol PTR) today announced a net profit
of RMB102.927 billion for the year ended December 31, 2004, representing a
substantial increase of 47.9 percent from the same period in 2003. This is
PetroChina's best-ever performance since its initial public offering.
For the year ended December 31, 2004, the Company's turnover reached RMB388.633
billion, representing an increase of 27.9 percent from the same period in 2003.
The basic and diluted earnings per share is RMB0.59, representing an increase of
RMB0.19 from 2003. The Company's Board of Directors has recommended a final
dividend of RMB0.147511 per share for the year 2004. This, together with the
interim dividend of approximately RMB0.1159 per share paid, means a full year
dividend of approximately RMB0.26 per share.
Mr. Chen Geng, Chairman of PetroChina said, "By leveraging on the opportunities
presented by high oil price and strong market demand for petrochemical products,
PetroChina continued to optimize the Company's production structure and
strengthen its operational management. The strategy not only resulted in the
Company's strong production and operational results, but it also enabled the
Company to achieve sustainable, effective, and rapid growth."
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EXPLORATION AND PRODUCTION
PetroChina's oil and gas exploration and production continued to maintain good
growth momentum in 2004. Operating profits for the exploration and production
segment reached RMB125.571 billion, representing an increase of 35.9 percent
from 2003. During this period, the Company enhanced its efforts in oil and gas
exploration, and made a series of important discoveries in the Nanbao of Jidong
coastal area, the Erdos Basin, the South Songliao Basin, the Tarim Basin, the
Sichuan Basin and the deep zone of Xujiaweizi in Daqing. The Company realized
replacement ratio of 1.02 for crude oil reserves, and 4.41 for natural gas
reserves in 2004.
The Company's crude oil production was stable with moderate growth, and its
natural gas production further accelerated. In 2004, the Company produced 778.4
million barrels of crude oil, representing an increase of 0.5 percent compared
with the previous year. The Company produced 841.2 billion cubic feet of
marketable natural gas, representing an increase of 21.7 percent compared with
the previous year.
REFINING AND MARKETING
The Company's refining and marketing business achieved a substantial increase in
profits in 2004. Operating profit reached RMB11.981 billion, representing an
increase of approximately RMB6.947 billion as compared with 2003. As a result of
resource allocation optimization, and enhanced production and operations, the
Company's refineries processed 698 million barrels of crude oil, representing an
increase of 12.3 percent as compared with 2003. The average utilization rate of
the Company's refining facilities in 2004 increased to 93.2 percent from 85.6
percent in 2003, representing an increase of 7.6 percentage points.
The Company actively expanded its marketing and sales network for refined
products. The Company sold 67.01 million tons of gasoline, kerosene and diesel
in 2004, representing an increase of approximately 14.87 percent from 2003.
Retail volume was 30.18 million tons, representing an increase of 35.3 percent
from 2003.
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The Company's service stations increased by 2,172 in 2004, with the total number
of service stations amounting to 17,403.
CHEMICALS AND MARKETING
By adjusting and optimizing product mix and reinforcing marketing efforts, the
Company strengthened the competitiveness and profitability of its chemical
business. The segment achieved an operating profit of RMB7.655 billion,
representing an increase of RMB6.614 billion compared with the previous year.
The year of 2004 saw a bigger increase in the Company's production and sales of
major chemical products. The total output of key chemical products reached
12.386 million tons, representing a 4.5 percent increase year on year, and of
which, 1.846 million tons of ethylene, 2.527 million tons of synthetic resin,
1.263 million tons of synthetic fiber raw materials and polymer, 0.286 million
tons of synthetic rubber and 3.652 million tons of urea were produced in 2004.
The total sales of chemical products amounted to 13.05 million tons,
representing an increase of 10.6 percent from 2003.
NATURAL GAS AND PIPELINE
The Company's construction of key natural gas pipelines achieved landmark
developments in 2004. The West-East Pipeline was fully launched and commenced
commercial operation. The construction of the trunk line of the Zhongxian-Wuhan
Pipeline and its two sublines in Hubei province was completed and these
pipelines also commenced production. The major engineering construction of the
subline in Hunan province has been completed. The main section of the Second
Shaanxi-Beijing gas Pipeline has also been completed. A nationwide network of
major natural gas pipelines has been initially formed.
Whilst the West-East Pipeline project was still at its preliminary stage of
operation and the gas volume transmitted had yet to reach the designed capacity
in 2004, the operating profits from the natural gas and pipeline business still
increased by 31.9 percent to RMB2.535 billion in this period. Rapid progress has
been made in the Company's natural gas sales. The Company secured contracts for
gas consumption
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volume of 12 billion cubic meters with the downstream users of the West-East
Pipeline, and for 3.9 billion cubic meters with that of the Zhongxian-Wuhan
Pipeline.
FUTURE PROSPECTS
As a result of the continuing rapid development of the Chinese national economy,
domestic consumption of oil and gas has now entered into a fast growing period.
Both the internal and external environment has provided a good platform for the
Company's further development. Looking forward, in an effort to achieve even
better performance targets, the Company will continue to strengthen the
exploration and development of oil and gas; speed up the pace of reserve growth
and bringing reserve to production; accelerate the adjustment and optimization
of its refining and chemicals business; further enhance its competitiveness and
profitability, as well as reinforce its marketing efforts and operational
efficiency.
The Company's management will continue to pursue the goals of maximizing the
Company's efficiency and shareholder values. We are committed to enhancing the
company's value, actively promoting technological innovation and introducing
innovative management. We will further strengthen the Company's internal control
and monitoring system to comply with the requirements of market and regulations.
With stable and healthy operation, the Company is well positioned for continuing
and rapid growth.
# # #
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 3551
Tel: (852) 2894 6204 / 92767 7672 Email: helen.lam@hillandknowlton.com.hk
Ms. Angie Tang
Tel: (852) 2894 6262 Email: angie.tang@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: March 16, 2005 By: /s/ Li Huaiqi
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Name: Li Huaiqi
Title: Company Secretary