WEB NEWS Comments & Business Outlook
PETROCHINA COMPANY LIMITED
For the Years Ended December 31, 2014, 2013 and 2012
(Amounts in millions, except for the per share data)
Notes
2014
2013
2012
RMB
RMB
RMB
TURNOVER
6
2,282,962
2,258,124
2,195,296
OPERATING EXPENSES
Purchases, services and other
(1,486,225
)
(1,464,805
)
(1,411,036
)
Employee compensation costs
8
(120,822
)
(116,422
)
(106,189
)
Exploration expenses, including exploratory dry holes
(22,064
)
(25,301
)
(23,972
)
Depreciation, depletion and amortization
(177,463
)
(163,365
)
(151,975
)
Selling, general and administrative expenses
(73,413
)
(79,021
)
(74,692
)
Taxes other than income taxes
9
(237,997
)
(248,086
)
(254,921
)
Other income, net
4,855
27,518
2,008
TOTAL OPERATING EXPENSES
(2,113,129
)
(2,069,482
)
(2,020,777
)
PROFIT FROM OPERATIONS
169,833
188,642
174,519
FINANCE COSTS
Exchange gain
5,020
4,157
3,339
Exchange loss
(7,333
)
(4,105
)
(3,208
)
Interest income
1,596
2,222
2,063
Interest expense
10
(23,319
)
(23,081
)
(18,164
)
TOTAL NET FINANCE COSTS
(24,036
)
(20,807
)
(15,970
)
SHARE OF PROFIT OF ASSOCIATES AND JOINT VENTURES
17
10,962
10,228
8,262
PROFIT BEFORE INCOME TAX EXPENSE
7
156,759
178,063
166,811
INCOME TAX EXPENSE
12
(37,731
)
(35,789
)
(36,191
)
PROFIT FOR THE YEAR
119,028
142,274
130,620
OTHER COMPREHENSIVE INCOME RECLASSIFIABLE TO PROFIT OR LOSS
Currency translation differences
(7,557
)
(11,432
)
(151
)
Fair value gain /(loss) from available-for-sale financial assets, net of tax
91
45
(18
)
Share of the other comprehensive income / (loss) of associates and joint ventures accounted for using the equity method
159
(218
)
127
OTHER COMPREHENSIVE LOSS, NET OF TAX
(7,307
)
(11,605
)
(42
)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
111,721
130,669
130,578
PROFIT FOR THE YEAR ATTRIBUTABLE TO:
Owners of the Company
107,172
129,599
115,326
Non-controlling interests
11,856
12,675
15,294
119,028
142,274
130,620
TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO:
Owners of the Company
101,279
120,577
115,340
Non-controlling interests
10,442
10,092
15,238
111,721
130,669
130,578
BASIC AND DILUTED EARNINGS PER SHARE FOR PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY(RMB)
14
0.59
0.71
0.63
Management Discussion and Analysis
Our turnover was RMB2,282,962 million in 2014, representing an increase of 1.1% compared to the preceding year. Profit attributable to owners of the company in 2014 was RMB107,172 million, representing a decrease of 17.3% compared to the preceding year. The basic and diluted earnings per share attributable to owners of the company were RMB0.59 in 2014, representing a decrease of RMB0.12 compared to the preceding year.
Turnover Turnover increased by 1.1% from RMB2,258,124 million in 2013 to RMB2,282,962 million in 2014. This increase was primarily due to a combined effect of an increase in selling prices of natural gas coupled with an increase in the sales volume of crude oil, natural gas, gasoline and other products.
Profit Attributable to Owners of the Company Profit attributable to owners of the company decreased by 17.3% from RMB129,599 million in 2013 to RMB107,172 million in 2014. This decrease was primarily due to a decrease in the prices of crude oil and refined oil products, and a decrease in the income generated from the pipeline assets and operations.
Liquidity Requirements
We plan to fund the capital and related expenditures described in this annual report principally through cash from operating activities, short-term and long-term borrowings and cash and cash equivalents.
For the year ended December 31, 2010, our capital expenditures increased 3.5% to RMB276,212 million from RMB266,836 million for the year ended December 31, 2009. The increase in capital expenditures was primarily due to an increase in input for constructions in sizeable oil and gas zones in China and overseas, as part of our strategy to continue focusing on oil and gas exploration and development. On the other hand, we reasonably timed our investment decisions and focused more on strengthening control of the process of projects. This served to reduce costs and control the growth in capital expenditures.
The table below sets forth our capital expenditures and investments by business segment for each of the years ended December 31, 2008, 2009 and 2010 as well as those anticipated for the year ending December 31, 2011. Actual capital expenditures and investments for periods after January 1, 2011 may differ from the amounts indicated below.
2011
2008
2009
2010
Anticipated
(RMB in
(RMB in
(RMB in
(RMB in
millions)
%
millions)
%
millions)
%
millions)
%
Exploration and production(1)
157,194
67.6
129,017
48.4
160,893
58.3
171,800
53.7
Refining and chemicals
30,619
13.2
42,558
15.9
44,242
16.0
48,000
15.0
Marketing
4,974
2.1
18,174
6.8
15,793
5.7
19,900
6.2
Natural gas and pipeline
36,848
15.9
74,754
28.0
53,648
19.4
77,300
24.2
Others
2,742
1.2
2,333
0.9
1,636
0.6
3,000
0.9
Total
232,377
100.0
266,836
(2)
100.0
276,212
100.0
320,000
100.0
(1)
If investments related to geological and geophysical exploration costs are included, the capital expenditures and investments for the exploration and production segment for 2009 and 2010, and the estimates for the same in 2011 would be RMB138,396 million, RMB173,142 million and RMB184,800 million, respectively.
(2)
The capital expenditure for 2009 has excluded the consideration for the acquisition of Singapore Petroleum Company Limited in the amount of Singapore dollars (“S$”)3,239 million (approximately RMB15,296 million).
As of December 31, 2010, the capital expenditures contracted for at the balance sheet date but not recognized in our consolidated financial statements were approximately RMB49,495 million.
