2019 annual results presentation -...
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2019 Annual Results Presentation
March 2020
2
Disclaimer
This presentation contains forward-looking statements that involve risks
and uncertainties. These statements are generally indicated by the use of
forward-looking terminology such as “believe”, “expect”, “anticipate”, “estimate”,
“plan”, “project”, “target”, “may”, “will” or other similar words that express an
indication of actions or results of actions that may or are expected to occur in the
future. You should not place undue reliance on these forward-looking statements,
which apply only as of the date of this presentation. These forward-looking
statements are based on our own information and on information from other
sources we believe to be reliable. Our actual results may be materially less
favorable than those expressed or implied by these forward-looking statements
which could affect the market price of our shares.
3
Board and Management
Mr. DAI Houliang
Chairman
Mr. CHAI Shouping
Chief Financial OfficerMr. LING Xiao
Vice President
Mr. YANG Jigang
Vice President
Mr. DUAN Liangwei
Executive Director
and President
Mr. WU Enlai
Secretary to the
Board of Directors
Mr. LI Luguang
Vice President
4
Agenda
2019 Financial Results Review1
2
3
Operating Results of 2019 and Outlook for 2020
Welcome Remarks by the Chairman
2019 Annual Results Review
Mr. CHAI Shouping
Chief Financial Officer
6
Financial Highlights
2019 2018 Change
Revenue 2,516,810 2,374,934 +6.0%
Operating profit 121,762 122,942 -1.0%
Net Profit attributable to
owners of the Company45,682 53,036 -13.9%
Basic EPS* 0.25 0.29 -0.04
RMB Million
*Basic EPS: RMB
On 31st May 2019, the Company completed the acquisition of the shares of WEPEC. According to the requirements of business combination
involving entities under common control, the Company processed the accounting and consolidated financial statements, and made adjustments to
the figures in the beginning of the year and the comparative statement.
7
Reasonable Arrangement of Capex
Exploration & Production Natural Gas & Pipeline
Refining & Chemicals Marketing
Headquarters & Others
0.25%
9.10%
7.17%
5.94%
77.54%
74,649 83,954
181,457 212,822
2018 2019
1H Capex 2H Capex
256,106
296,776
RMB Million
Capex Comparison 2019 Capex
8
Major Costs Effectively Controlled
Lifting Cost
167.74 168.64
2018 2019
12.31 12.11
2018 2019
319.61 330.76
2018 2019
Cash Processing Cost Oil Marketing Cost
USD/bbl RMB/ton RMB/ton
9
RMB Million
Total Assets
Debt-to-Capital Ratio
Debt-to-Asset Ratio
2,440,877
2,732,910
As of 31 Dec 2018 As of 31 Dec 2019
42.3% 47.2%
As of 31 Dec 2018 As of 31 Dec 2019
22.7% 24.4%
As of 31 Dec 2018 As of 31 Dec 2019
353,256
85,946
359,610
39,924
Net Cash Flow from OperatingActivities
Free Cash Flow
Cash Flow
2018
2019
RMB Million
Healthy Financial Position
10
Exploration and Production – Profits from Operations
73,519
96,097
28,050
8,543
2018 Price Sales Volume Operating Expenses 2019
RMB Million
-14,015
During 2019, the Group imported 39.95 million tons of oil from Russia, Kazakhstan and other regions, an increase of
8.9% compared to 36.69 million tons in 2018. Relevant sales revenue was RMB131,723 million, representing an
increase of 2.7% compared to RMB128,308 million in 2018. Purchasing cost was RMB130,941 million, representing
an increase of 1.8% compared to RMB128,637 million in the same period last year.
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Refining and Chemicals – Profits from Operations
RMB million
Refining Business Chemicals Business
36,878
10,337
7,823
3,4273,489
3,304
2,583
2018 Gross Profit ProcessedVolume
OperatingExpenses
2019 2018 Price Sales Volume OperatingExpenses
2019
-33,334
-25,18118,202
12
-6,450
4,855
874609 -565
2018 Gross Profit Sales Volume Operating Expenses International Trade 2019
557
-453
Marketing – Profits from Operations
13
Natural Gas and Pipelines – Profits from Operations
RMB million
25,515270 600
26,108
2018 Gross profit from sales ofnatural gas
Gross profit from pipelinetransmission
Gross profit from city gas Operating expenses and others 2019
-46-231
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Emphasis on Shareholder Return
RMB
Dividend Comparison
0.08880 0.07765
0.090000.06601
2018 2019
1H 2H
• Distribution of final dividend of RMB0.04243 per
share*, representing 45% of net profit as per the
IFRS
• Special final dividend of RMB0.02358 per share*
• Total final dividend of RMB0.06601 per share*
• Full-year dividend of RMB0.14366 per share*
• Total dividend of RMB26.293 billion
* Including tax
Operating Results of 2019
and Outlook for 2020
Mr. DUAN Liangwei
Executive Director and President
16
2019 Market Situation and Oil & Gas Prices
Source: National Development and Reform Commission
Average Realized Crude Oil Price
USD/bbl
Average City Gate Natural Gas Price
USD/’000 cubic feet
China’s Natural Gas Consumption Growth
bcm
USD/bbl
Brent Crude Oil Spot Price
Source: Bloomberg
65.3
87.6
53.9
72.9
104.2 103.7 100.4
94.8
48.4
38.0
50.6
68.3
61.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
241.9
217.7214.9
217.0
221.0
219.8
228.8
233.2 224.2
231.0
266.3
277.4
287.0
239.3
243.7
243.6
245.3
225.8
244.9
250.0
245.0
233.0
278.0
288.0
3.8
4.74.8
5.5
6.46.7
7.4
7.8
7.4
5.7
6.3
7.1
6.4
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Average: 62.26
Average: 71.16
Average: 72.22
Average: 66.12
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Overseas business achieved an
orderly development with
cooperation with international oil and
gas enterprises strengthened
Actively decreasing the volume of
refined oil products and increasing
the production of chemicals, the
transformation and upgrading of
Refining and Chemicals segment
were steadily pushed forward
Natural gas and pipeline
businesses maintained a
smooth operation, seeing an
improvement in market sales
and efficiency
Domestic exploration and
production were enhanced, with
obvious effects achieved in
reserves and output increase
Sparing no efforts in exploring the market,
sales volume of refined oil products
continued to increase
Operating Performancein Line with
Expectations
Main Production Indicators Improved Steadily with Operating Performance in Line with Expectations
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Domestic Exploration and Production were Enhanced, with Obvious Effects Achieved in Reserves and Output Increase
Bozi9
Changye1H, 2H
Chetan1
Gaotan1
Qingcheng shale oil
Moxi129
Southern
Sichuan
shale gas
Qianshao2
Dinan15
Zhongqiu1
Tahenan
Qietan2
Tai60
Xinglongtai
mesozoic
formation
Suluxi slope
zone
Yinggu2
Longping1
Qing1 shale oil
in Daqingzijing
New progress
Discovery
Oil Gas
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Abu Dhabi
Kazakhstan
Australia
Venezuela
Peru
Canada
Indonesia
Azerbaijan
Oman
Iraq
United Kingdom
France
Japan
新加坡
• Phase 2.2 of Chad
Project commenced
full-scale operation
Chad
• Halfaya Phase-3 Project in
Iraq commenced full-scale
operation
• The Chad Basin and the Bongor Basin are expected to discover
two 100-million-ton level reserve areas
• The Bilma block in Niger revealed 50-million-ton level resource
potential zones
Overseas Business Achieved an Orderly Development with Cooperation with International Oil and Gas Enterprises Strengthened
• A number of important discoveries
were made in progressive
exploration in mature exploration
areas such as PK Project and
Aktyubinsk Project in Kazakhstan
Niger
20
2019 2018 Change
Crude Oil Output (MM bbl) 909.3 890.3 +2.1%
Domestic (MM bbl) 739.7 733.7 +0.8%
Overseas (MM bbl) 169.6 156.6 +8.3%
Marketable Natural Gas Output (bcf) 3,908.0 3,607.6 +8.3%
Domestic (bcf) 3,633.0 3,324.7 +9.3%
Overseas (bcf) 275.0 282.9 -2.8%
Oil & Gas Equivalent Output (MM boe) 1,560.8 1,491.7 +4.6%
Domestic (MM boe) 1,345.4 1,287.9 +4.5%
Overseas (MM boe) 215.4 203.8 +5.7%
Exploration and Production - Key Oil and Gas Production Indicators
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24,40425,756
2018 2019
1,180.501,228.40
2018 2019
‘000 tons
Commercialization of Chemicals ProductsCrude Processing Volume
‘000 tons ‘000 tons
Production of Major Refined Oil Products Production of Major Chemicals Products
2019 2018 Change
Refined oil products 117,791 111,148 +6.0%
Gasoline 50,430 45,794 +10.1%
Kerosene 12,733 11,043 +15.3%
Diesel 54,628 54,311 +0.6%
2019 2018 Change
Ethylene 5,863 5,569 +5.3%
Synthetic resin 9,580 9,165 +4.5%
Synthetic fiber
materials and
polymers
1,309 1,388 -5.7%
Synthetic rubber 910 869 +4.7%
Urea 1,208 828 +45.9%
Actively Decreasing the Volume of Refined Oil Products and Increasing the Production of Chemicals, the Transformation and Upgrading of Refining and Chemicals Segment were Steadily Pushed Forward
MM bbl
22
52,222
9,260
54,874 53,546
8,696
56,753
Gasoline Kerosene Diesel
2018 2019
21,783 22,365
2018 2019
Domestic Sales Volume of Refined Oil Products
332
423
2018 2019
International Trade
‘000 tons
Sales Volume of Major Refined Oil Products
Total Service StationsStation‘000 tons
MM bbl
2019 2018 Change
Sales of Refined Oil Products
187,712 178,648 +5.1%
Gasoline 76,366 71,125 +7.4%
Kerosene 21,183 20,619 +2.7%
Diesel 90,163 86,904 +3.8%
Sparing no Efforts in Exploring the Market, Sales Volume of Refined Oil Products Continued to Increase
23
216.8 259.1
2018 2019
159.6 171.4
2018 2019
• Actively promoted the construction of natural gas
production, supply, storage and marketing system
• Promoted the full coverage of sales contract signing and
strive to improve price and efficiency
• Fully implemented the three-year action plan to develop
the market
Natural Gas Business
• Optimized pipeline network operation and implemented
safety upgrading management of oil and gas pipeline
• Achieved important interim success in reducing potential
inventory risks
• The northern part of China-Russia East-route Natural
Gas Pipeline was completed and commenced operation
• 21 projects in natural gas pipeline interconnection were
completed and commenced operation
Pipeline Construction
Billion cubic meters
Billion cubic meters
Domestic Sales of Natural Gas
Sales of Natural Gas
Natural Gas and Pipeline Businesses Maintained a Smooth Operation, Seeing an Improvement in Market Sales and Efficiency
24
Boosted Scientific and Technological Innovation to Enhance Driving Force of Growth
Significant Achievement
Key Technological Invention
A well logging method and unit for rock brittleness evaluation
A 100-million-ton level production capacity construction and highly
efficient development project in the ultra thick and complex carbonate
reservoir in the Middle East
Continue to promote technological innovation and provide technical
support for major project construction and production operations
25
• Achieved 120% of its water saving target
• Achieved 128% of its energy saving target
• COD decreased by 4.8%
• Ammonia nitrogen emissions decreased by 13.4%
• SO2 emissions decreased by 9.8%
• Nitrogen oxides emissions decreased by 7.9%
• No serious or major production safety accidents
Improved Safety and Environment Protection Performance
26
Work Priority in 2020
Exploration and Production Segment: strengthen exploration,
re-prioritize production build-up projects after performance
assessments, and strive to acquire economical recoverable
reserves and profitable output
Natural Gas and Pipelines Segment: ensure construction ofkey pipeline network projects, continue to develop gas market,improve end-user facility construction, in order to improve thevalue chain of natural gas businesses
Refining and Chemicals Segment: focus on transformation and
upgrading by controlling the volume of refined oil products and
enhancing efficiency, provide support to key projects under
construction, do well the preliminary stage work of new projects,
and start new ones in stagger schedules
Marketing Segment: focus on development of high-qualitymarkets, optimize construction plans of gas stations inaccordance with market changes, and continuously increase thesales volume of refined oil products
27
Work Priority in 2020
Adhering to making-ends-meet
policy
Tilting more towards prioritized projects
while cutting those of non essential
Cut costs and enhance efficiency
Actively respond to current situation with
long-term vision for future development
Optimize crude oil production
based on oil prices
Ensure continued growth
in natural gas production
Adjust and Optimize Business Development
and Investment Plan
Achieve Value of the Oil and
Gas Business Chain
Welcome Remarks
by the Chairman
Mr. DAI Houliang
Chairman
29
Risks and Challenges in the Oil and Gas Industry
• PetroChina’s oil and gas businesses
demonstrate positive growth
momentum
• The Company’s maintained a
healthy financial position
• The consumption of global oil and gas has
slowed down significantly as the Covid-19
pandemic crushes demand for fuel. The recent
steep decline of international oil prices has
increased the operating pressure for global
oil and gas companies
• China's prevention and control measures have
proved to be effective. The government’s
measures to resume work and production are
showing significant results, with signals showing
the acceleration of economic and social
development and the gradual recovery of
demand for oil and gas
20202019
30
Actively Respond to Risks and Challenges and Strive to Achieve a Better Performance
Focus on Green and Low-carbon
Development
Focus on Value Creation Focus on Digital Transformation
& Intelligent Development
Focus on Strategic Development
in Resource, Marketing,
Internationalism and Innovation
Media Relations
Tel: (852)2894-6231
Fax: (852)2576-1990
Email: [email protected]
Investor Relations
Tel: (852)2899-2010
Fax: (852)2899-2390
Email: [email protected]