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 October 2018
Commission File Number: 001-15006
PETROCHINA COMPANY LIMITED
9 Dongzhimen North Street, Dongcheng District
Beijing, The Peoples Republic of China, 100007
(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 ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
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 ☒
(If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- )
EXHIBITS
Exhibit |
||
99.1 | An announcement dated October 30, 2018 regarding the third quarterly report of the company; and | |
99.2 | A press release dated October 30, 2018 entitled PetroChina Increased Oil and Gas Output Steadily in the First Three Quarters of 2018. |
FORWARD-LOOKING STATEMENTS
This announcement 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 reflect our 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.
We do not intend to update or otherwise revise the forward-looking statements in this announcement, whether as a result of new information, future events or otherwise. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this announcement might not occur in the way we expect, or at all.
You should not place undue reliance on any of these forward-looking statements.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this announcement to be signed on its behalf by the undersigned, thereunto duly authorized.
PetroChina Company Limited | ||||||
Dated: October 30, 2018 | By: | /s/ WU Enlai | ||||
Name: | WU Enlai | |||||
Title: | Company Secretary |
Exhibit 99.1
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
PETROCHINA COMPANY LIMITED
(A joint stock limited company incorporated in the Peoples Republic of China with limited liability)
(Hong Kong Stock Exchange Stock Code: 857; Shanghai Stock Exchange Stock Code: 601857)
ANNOUNCEMENT
Third Quarterly Report of 2018
1. | Important Notice |
1.1. | The Board of Directors, the Supervisory Committee and the Directors, Supervisors and Senior Management of PetroChina Company Limited (the Company) warrant that there are no material omissions from, or misrepresentation or misleading statements contained in this quarterly report, and jointly and severally accept full responsibility for the truthfulness, accuracy and completeness of the information contained in this quarterly report. |
1.2. | This quarterly report has been approved at the sixth meeting of the Board of Directors of the Company in 2018. All Directors have attended the meeting of the Board of Directors. |
1.3. | Mr. Wang Yilin, Chairman of the Board of Directors of the Company, Mr. Zhang Jianhua, Vice Chairman of the Board of Directors and President of the Company, and Mr. Chai Shouping, Chief Financial Officer of the Company, warrant the truthfulness, accuracy and completeness of the financial statements set out in this quarterly report. |
1.4. | The financial statements of the Company and its subsidiaries (the Group) have been prepared in accordance with the China Accounting Standards (CAS) and the International Financial Reporting Standards (IFRS), respectively. The third quarterly report of the Company is unaudited. |
1
2. | Basic Information of the Company |
2.1 | Key Financial Data |
2.1.1 | Key Financial Data and Financial Indicators Prepared under IFRS |
Unit: RMB Million
Items |
As at the end of the reporting period |
As at the end of the preceding year |
Changes from the end of the preceding year to the end of the reporting period (%) |
|||||||||
Total assets |
2,483,265 | 2,404,612 | 3.3 | |||||||||
Equity attributable to owners of the Company |
1,217,448 | 1,193,520 | 2.0 | |||||||||
Items |
From the beginning of the year to the end of the reporting period |
From the beginning of the preceding year to the end of the preceding reporting period |
Changes over the same period of the preceding year (%) |
|||||||||
Net cash flows from operating activities |
256,937 | 244,295 | 5.2 |
Unit: RMB Million
For the three months ended September 30 (July-September) |
For the nine months ended September 30 (January-September) |
|||||||||||||||||||||||
Items |
2018 | 2017 | Changes over the same period of the preceding year (%) |
2018 | 2017 | Changes over the same period of the preceding year (%) |
||||||||||||||||||
Revenue |
601,111 | 481,795 | 24.8 | 1,709,933 | 1,457,704 | 17.3 | ||||||||||||||||||
Profit attributable to owners of the Company |
21,036 | 4,690 | 348.5 | 48,124 | 17,366 | 177.1 | ||||||||||||||||||
Return on net assets (%) |
1.7 | 0.4 | |
1.3 percentage points |
|
4.0 | 1.5 | |
2.5 percentage points |
| ||||||||||||||
Basic earnings per share (RMB Yuan) |
0.115 | 0.026 | 348.5 | 0.263 | 0.095 | 177.1 | ||||||||||||||||||
Diluted earnings per share (RMB Yuan) |
0.115 | 0.026 | 348.5 | 0.263 | 0.095 | 177.1 |
2
2.1.2 | Key Financial Data and Financial Indicators Prepared under CAS |
Unit: RMB Million
Items |
As at the end of the reporting period |
As at the end of the preceding year |
Changes from the end of the preceding year to the end of the reporting period (%) |
|||||||||
Total assets |
2,483,559 | 2,404,910 | 3.3 | |||||||||
Equity attributable to equity holders of the Company |
1,217,735 | 1,193,810 | 2.0 | |||||||||
Items |
From the beginning of the year to the end of the reporting period |
From the beginning of the preceding year to the end of the preceding reporting period |
Changes over the same period of the preceding year (%) |
|||||||||
Net cash flows from operating activities |
256,937 | 244,295 | 5.2 |
Unit: RMB Million
For the three months ended September 30 (July-September) |
For the nine months ended September 30 (January-September) |
|||||||||||||||||||||||
Items |
2018 | 2017 | Changes over the same period of the preceding year (%) |
2018 | 2017 | Changes over the same period of the preceding year (%) |
||||||||||||||||||
Operating income |
601,111 | 481,795 | 24.8 | 1,709,933 | 1,457,704 | 17.3 | ||||||||||||||||||
Net profit attributable to equity holders of the Company |
21,035 | 4,688 | 348.7 | 48,121 | 17,362 | 177.2 | ||||||||||||||||||
Net profit after deducting non-recurring profit/loss items attributable to equity holders of the Company |
27,952 | 6,654 | 320.1 | 58,179 | 21,956 | 165.0 | ||||||||||||||||||
Weighted average return on net assets (%) |
1.7 | 0.4 | |
1.3 percentage points |
|
4.0 | 1.5 | |
2.5 percentage points |
| ||||||||||||||
Basic earnings per share (RMB Yuan) |
0.115 | 0.026 | 348.7 | 0.263 | 0.095 | 177.2 | ||||||||||||||||||
Diluted earnings per share (RMB Yuan) |
0.115 | 0.026 | 348.7 | 0.263 | 0.095 | 177.2 |
3
Unit: RMB Million
Non-recurring profit/loss items |
For the nine months ended September 30, 2018 profit/(loss) |
|||
Net loss on disposal of non-current assets |
(9,575 | ) | ||
Government grants recognised in the income statement |
558 | |||
Reversal of provisions for bad debts against receivables |
13 | |||
Net profit or loss arising from disposal of subsidiary |
1 | |||
Other non-operating income and expenses |
(4,018 | ) | ||
|
|
|||
Sub-total |
(13,021 | ) | ||
|
|
|||
Tax impact of non-recurring profit/loss items |
2,958 | |||
Impact of non-controlling interests |
5 | |||
|
|
|||
Total |
(10,058 | ) | ||
|
|
2.1.3 | Differences between CAS and IFRS |
Ö Applicable ☐ Inapplicable
The consolidated net profit for the reporting period under IFRS and CAS were RMB63,326 million and RMB63,323 million, respectively, with a difference of RMB3 million; the consolidated shareholders equity as at the end of the reporting period under IFRS and CAS were RMB1,414,963 million and RMB1,415,251 million, respectively, with a difference of RMB288 million, which was primarily due to the revaluation for assets other than fixed assets and oil and gas properties revalued in 1999. During the restructuring in 1999, a valuation was carried out for assets and liabilities injected by China National Petroleum Corporation (中國石油天然氣集團公司, now known as 中國石油天然氣集團有限公司, CNPC before and after the change of name). The valuation results on assets other than fixed assets and oil and gas properties were not recognised in the financial statements prepared under IFRS.
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2.2 | Total Number of Shareholders, Shareholdings of Top Ten Shareholders and Shareholdings of Top Ten Holders of Marketable Shares (or Holders of Shares Without Selling Restrictions) as at the End of the Reporting Period |
Number of shareholders as at the end of the reporting period | 498,543 shareholders including 491,987 holders of A shares and 6,556 holders of H shares (including 171 holders of the American Depository Shares) |
Shareholdings of the top ten shareholders of shares without selling restrictions
Name of shareholders |
Number of shares held |
Type of shares |
||||||||
1 | CNPC | 149,143,168,236 | (1) | A shares | ||||||
2 | HKSCC Nominees Limited(2) | 20,878,986,390 | (3) | H shares | ||||||
3 | CNPC-CSC-17 CNPC E2 Pledge and Trust Special Account (4) | 3,820,000,000 | A shares | |||||||
4 | CNPC-CSC-17 CNPC EB Pledge and Trust Special Account (5) | 2,060,679,800 | A shares | |||||||
5 | China Securities Finance Corporation Limited | 1,139,138,704 | A shares | |||||||
6 | Beijing Chengtong Financial Holding Investment Co., Ltd. | 972,762,646 | A shares | |||||||
7 | Guoxin Investment Co., Ltd. | 962,456,346 | A shares | |||||||
8 | China Baowu Steel Group Corporation Limited | 624,000,000 | A shares | |||||||
9 | Ansteel Group Corporation | 440,000,000 | A shares | |||||||
10 | Central Huijin Asset Management Co., Ltd. | 206,109,200 | A shares |
Shareholdings of the top ten shareholders
Name of shareholders |
Number of shares held |
Type of shares |
||||||||
1 | CNPC | 149,143,168,236 | A shares | |||||||
2 | HKSCC Nominees Limited | 20,878,986,390 | H shares | |||||||
3 | CNPC-CSC-17 CNPC E2 Pledge and Trust Special Account | 3,820,000,000 | A shares | |||||||
4 | CNPC-CSC-17 CNPC EB Pledge and Trust Special Account | 2,060,679,800 | A shares | |||||||
5 | China Securities Finance Corporation Limited | 1,139,138,704 | A shares | |||||||
6 | Beijing Chengtong Financial Holding Investment Co., Ltd. | 972,762,646 | A shares | |||||||
7 | Guoxin Investment Co., Ltd. | 962,456,346 | A shares | |||||||
8 | China Baowu Steel Group Corporation Limited | 624,000,000 | A shares | |||||||
9 | Ansteel Group Corporation | 440,000,000 | A shares | |||||||
10 | Central Huijin Asset Management Co., Ltd. | 206,109,200 | A shares |
Statement on the connection or activities acting in concert among the above-mentioned shareholders:
The Company is not aware of any connection among or between the other top ten shareholders or that they are persons acting in concert as provided for in the Measures for the Administration of Acquisitions by Listed Companies.
Notes: |
(1) Such figure excludes the H shares indirectly held by CNPC through Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC. (2) HKSCC Nominees Limited is a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited and acts as nominee on behalf of other corporate or individual shareholders to hold the H shares of the Company. (3) 291,518,000 H shares were indirectly held by CNPC through Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC, representing 0.16% of the total issued shares of the Company. These shares were held in the name of HKSCC Nominees Limited. (4) On November 21, 2017, CNPC transferred 3,820,000,000 A shares to CNPC-CSC-17 CNPC E2 Pledge and Trust Special Account as 17 CNPC E2 Pledge and Trust Property, representing approximately 2.09% of the total share capital of the Company. Please see the announcement made by the Company on the website of Shanghai Stock Exchange numbered as Lin 2017-049 and the announcement on the website of The Stock Exchange of Hong Kong Limited (Hong Kong Stock Exchange) on November 21, 2017. (5) On July 3, 2017, CNPC transferred 2,061,000,000 A shares to CNPC-CSC-17 CNPC EB Pledge and Trust Special Account as 17 CNPC EB Pledge and Trust Property, representing approximately 1.13% of the total share capital of the Company. Please see the announcement made by the Company on the Shanghai Stock Exchange numbered as Lin 2017-028 and the announcement on the website of the Hong Kong Stock Exchange on July 3, 2017. As at the end of the Reporting Period, 320,200 shares of the Company have been exchanged by somebondholders of 17 CNPC EB. | |
5
2.3 | Number of Shareholders of Preferred Shares, Shareholdings of Top Ten Shareholders of Preferred Shares and Shareholdings of Top Ten Shareholders of Preferred Shares without Selling Restrictions as at the End of the Reporting Period |
☐ Applicable Ö Inapplicable
2.4 | Business Review |
In the first three quarters of 2018, the world economy recovered moderately with unbalanced developments among various economies and increasing unstable and uncertain risks in the global political and economic environments. Chinas economy maintained its tendency to be steady and turn for better with an increase of 6.7% in the GDP as compared with the same period of last year. The demand and supply in the global oil market was in a state of tight balance. The international oil prices fluctuated with a rising tendency and the average price increased significantly as compared with the same period of last year. The average spot price of North Sea Brent crude oil and the average spot price of the West Texas Intermediate (WTI) crude oil were US$72.13 per barrel and US$66.92 per barrel, respectively, representing an increase of 39.1% and 35.7% as compared with the same period of last year, respectively. The domestic refined products market is of abundant supply and demand and faces fierce competition. The market demand for natural gas continued to grow rapidly.
Facing the complex and difficult operating situations domestically and abroad, the Group grasped the favorable opportunities offered by the rising oil prices and the increasing market demand for natural gas, pursued to its guidelines of steady development, focused on high-quality developments, deepened reform and innovation as driving forces, broadened sources of income, reduced costs and improved efficiency. The Group took proactive measures to adapt itself to changes in the market, optimised its production of oil and gas, and strengthened the balance of resources and the coordination of operations. The Group achieved stable and controlled production and operation and its operating results improved significantly. In the first three quarters of 2018, under IFRS, the Group achieved the revenue of RMB1,709,933 million and the net profit attributable to owners of the Company of RMB48,124 million, representing an increase of 17.3% and RMB30,758 million respectively as compared with the same period of last year. The financial position of the Group stayed stable with a decrease in interest-bearing debts and debt to capital ratio. The cash flow was favorable and the free cash flow continued to be positive.
In respect of domestic exploration and production business, taking into account the developments and potential resources of various oil fields, the Group optimised its deployment of exploration and development activities, promoted steady production of crude oil, devoted more efforts to exploration in key gas regions, optimised capacity construction targets, kept increasing the domestic output of natural gas. In respect of overseas oil and gas business, fully leveraging The Belt and Road Initiative, the Group adjusted output flexibly based on price movements and profitability and pushed forward production in an orderly way. The Abu Dhabi offshore oil field projects were successfully completed and operated with high quality. The LNG Canada Project formally entered into the implementation stage with the final investment decision on Phase I passed. In the first three quarters of 2018, the crude oil output of the Group amounted to 663.3 million barrels, representing an increase of 0.5% as compared with the same period of last year. The marketable natural gas output of the Group amounted to 2,661.6 billion cubic feet, representing an increase of 4.8% as compared with the same period of last year. The oil and gas equivalent output was 1,107.0 million barrels, representing an increase of 2.2% as compared with the same period of last year, of which the domestic oil and gas equivalent output was 957.5 million barrels, representing an increase of 1.4% as compared with the same period of last year and the overseas oil and gas equivalent output was 149.5 million barrels, representing an increase of 7.8% as compared with the same period of last year. In the first three quarters of 2018, in the exploration and production segment, the Group took proactive measures to pursue its low-cost strategy and devoted major efforts to promoting the guidelines of broadening sources of income, reducing cost and improving efficiency. The unit oil and gas lifting cost was US$11.47 per barrel, representing a decrease of 3.0% as compared with the same period of last year, excluding the foreign exchange impact. Benefiting from the combined effect of such factors as increase in crude oil prices and intensified control of costs and expenses, the exploration and production segment achieved an operating profit of RMB57,884 million, representing an increase of RMB46,901 million as compared with RMB10,983 million for the same period of last year and thus maintained as the primary profitable segment of the Group.
6
In respect of refining and chemicals, adhering to the principles of market orientation, the Group continued to push forward transformation and upgrading, kept optimising the allocation of resources and the structure of products, increased the production of marketable and highly profitable products and adjusted the diesel to gasoline ratio of its production down to 1.21 from 1.31 in the same period of last year. The Group increased the processing workload of its chemical production facilities and, while many of its petrochemical facilities including Jilin Petrochemical, Sichuan Peterochemcial and Daqing Petrochemcial were under routine overhaul, maintained a basically steady output of commercialized petrochemical products. The Group strengthened control over costs and expenses, thus maintaining the positive tendency to make profit. In the first three quarters of 2018, as a result of such factors as the commencement of production of Yunnan Petrochemical in the second half of 2017, the Group processed 825.6 million barrels of crude oil, representing an increase of 10.9% as compared with the same period of last year. The Group produced 77.15 million tons of gasoline, diesel and kerosene, representing an increase of 14.1% as compared with the same period of last year. In the first three quarters of 2018, the refining and chemicals segment exercised strict control over costs and expenses and achieved a refinery unit cash processing cost of RMB160.38 per ton, representing a decrease of 2.1% as compared with the same period of last year. The segment achieved an operating profit of RMB36,631 million, representing an increase of 32.1% as compared with RMB27,732 million for the same period of last year. Specifically, the refining operations achieved an operating profit of RMB27,776 million, representing an increase of 65.4% as compared with RMB16,795 million for the same period of last year. Due to the impact of the routine overhaul of a number of petrochemical facilities and the decrease in the gross profit of chemical products, the chemicals operations achieved an operating profit of RMB8,855 million, representing a decrease of 19.0% as compared with RMB10,937 million for the same period of last year.
In respect of marketing, facing such unfavourable challenges as the significant increase of resources and fiercer competition in the domestic refined products market, the Group optimised its sales structure and generally strengthened the integrated marketing of refined products, fuel cards, non-oil business, lubricants and natural gas and the internet + marketing initiatives. Fully leveraging the role of international trade in regulating resources and creating profitability, the Group developed overseas markets of high profitability, made an overall planning for the export and import of resources, and improved the overall profitability while ensuring a smooth industrial chain. In the first three quarters of 2018, the segment sold 136.717 million tons of gasoline, kerosene and diesel, representing an increase of 10.749 million tons (8.5%) as compared with the same period of last year. In the first three quarters of 2018, the marketing segment achieved an operating profit of RMB6,424 million, representing an increase of 12.0% as compared with RMB5,734 million for the same period of last year.
In respect of natural gas and pipeline, the Group leveraged the advantages of centralised adjustment and control, kept improving the operating efficiency and profitability of pipelines network. In view of the increasing demand for natural gas in the market, the Group built a profitability-oriented natural gas marketing mechanism starting from the allocation of resources and market segmentation. The Group intensified its efforts to develop incremental markets, took active steps to expand high-end and high-profitability markets and continuously enhanced the value of the natural gas business chain. In the first three quarters of 2018, as a result of such factors as the increase in the price and sales of natural gas as compared with the same period of last year, the natural gas and pipeline segment achieved an operating profit of RMB19,719 million, representing an increase of 9.3% as compared with RMB18,045 million for the same period of last year. In the first three quarters of 2018, as a result of the increase in the imports of natural gas, the net loss incurred from sales of imported gas and LNG in the natural gas and pipeline segment amounted to RMB19,957 million, representing an increase in loss of RMB2,962 million as compared with the same period of last year. The Group will continue to take effective measures to control losses as much as possible.
7
In the first three quarters of 2018, the average realised price for crude oil of the Group was US$67.93 per barrel, representing an increase of 39.3% as compared with the same period of last year, of which the domestic realised price was US$66.69 per barrel. The average realised price for natural gas was US$5.72 per thousand cubic feet, representing an increase of 13.0% as compared with the same period of last year, of which the domestic realised price was US$5.90 per thousand cubic feet.
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Summary of Key Operating Data for the First Three Quarters of 2018
Operating Data |
Unit | For the nine months ended September 30 |
Changes over the same period of the preceding year (%) |
|||||||||||||
2018 | 2017 | |||||||||||||||
Crude oil output |
Million barrels | 663.3 | 660.1 | 0.5 | ||||||||||||
of which: domestic |
Million barrels | 549.2 | 554.6 | (1.0 | ) | |||||||||||
overseas |
Million barrels | 114.1 | 105.5 | 8.2 | ||||||||||||
Marketable natural gas output |
Billion cubic feet | 2,661.6 | 2,539.2 | 4.8 | ||||||||||||
of which: domestic |
Billion cubic feet | 2,449.5 | 2,339.9 | 4.7 | ||||||||||||
overseas |
Billion cubic feet | 212.1 | 199.3 | 6.4 | ||||||||||||
Oil and natural gas equivalent output |
Million barrels | 1,107.0 | 1,083.4 | 2.2 | ||||||||||||
of which: domestic |
Million barrels | 957.5 | 944.7 | 1.4 | ||||||||||||
overseas |
Million barrels | 149.5 | 138.7 | 7.8 | ||||||||||||
Processed crude oil |
Million barrels | 825.6 | 744.5 | 10.9 | ||||||||||||
Gasoline, kerosene and diesel output |
Thousand tons | 77,150 | 67,591 | 14.1 | ||||||||||||
of which: Gasoline |
Thousand tons | 31,512 | 26,998 | 16.7 | ||||||||||||
Kerosene |
Thousand tons | 7,427 | 5,284 | 40.6 | ||||||||||||
Diesel |
Thousand tons | 38,211 | 35,309 | 8.2 | ||||||||||||
Gasoline, kerosene and diesel sales |
Thousand tons | 136,717 | 125,968 | 8.5 | ||||||||||||
of which: Gasoline |
Thousand tons | 55,489 | 48,458 | 14.5 | ||||||||||||
Kerosene |
Thousand tons | 14,326 | 12,459 | 15.0 | ||||||||||||
Diesel |
Thousand tons | 66,902 | 65,051 | 2.8 | ||||||||||||
Output of key chemical products |
||||||||||||||||
Ethylene |
Thousand tons | 4,008 | 4,280 | (6.4 | ) | |||||||||||
Synthetic resin |
Thousand tons | 6,564 | 6,880 | (4.6 | ) | |||||||||||
Synthetic fibre raw materials and polymer |
Thousand tons | 1,032 | 1,035 | (0.3 | ) | |||||||||||
Synthetic rubber |
Thousand tons | 630 | 589 | 7.0 | ||||||||||||
Urea |
Thousand tons | 802 | 1,164 | (31.1 | ) |
Notes: (1) | Figures have been converted at the rate of 1 ton of crude oil = 7.389 barrels and 1 cubic metre of natural gas = 35.315 cubic feet. |
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3. Significant Events
3.1 | Significant changes in key accounting items and financial indicators under CAS and explanation of such changes |
Ö Applicable ☐Inapplicable
Unit: RMB Million
Items |
September 30, 2018 |
December 31, 2017 |
Changes (%) |
Key explanation of the changes | ||||||||||
Advances to suppliers |
27,535 | 10,191 | 170.2 | Mainly due to the increase in amount such as prepayments for oil and materials of the current period | ||||||||||
Available-for-sale financial assets |
| 1,937 | | In accordance with the Accounting Standards for Enterprises No.37 - Presentation of Financial Instruments (Amended), effective from January 1, 2018, the investments in non-tradable equity instruments under available-for-sale financial assets were transferred into investments in other equity instrument, while the comparative financial statements do not need to be adjusted (for details please refer to 3.6 Other significant events). The change was mainly due to the transferring out part of the investments in other equity instruments | ||||||||||
Investments in other equity instruments |
932 | | | |||||||||||
Other non-current assets |
38,916 | 25,483 | 52.7 | Mainly due to the increase in prepayments for equipments and construction materials | ||||||||||
Advances from customers |
| 67,176 | | In accordance with the Accounting Standards for Enterprises No.14 Revenue (Amended) effective from January 1, 2018, the advances from customers arising from transferring commodities (or providing services) were transferred into contract liabilities, instead of advances from customers, while the comparative financial statements do not need to be adjusted (for details please refer to 3.6 Other significant events) | ||||||||||
Contract liabilities |
78,830 | | | |||||||||||
Employee compensation payable |
15,488 | 6,955 | 122.7 | Mainly due to the increase in the outstanding amount of remuneration payable as compared with that at the end of last year | ||||||||||
Other payables |
87,726 | 32,804 | 167.4 | Mainly due to the increase in dividends payable and other payables relating to other business | ||||||||||
Other current liabilities |
4,217 | 1,673 | 152.1 | Mainly due to the increase in the inter borrowings of overseas subsidiaries during the ordinary course of production and operation |
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Items |
For the nine months ended September 30 |
Changes (%) |
Key explanation of the changes | |||||||||||
2018 | 2017 | |||||||||||||
Asset impairment losses |
(162 | ) | (393 | ) | (58.8 | ) | Mainly due to the decrease in provision for inventory depreciation of certain chemical products | |||||||
Credit losses |
11 | | | Mainly due to reversal of bad debts associated with other receivables | ||||||||||
Other income |
6,724 | 3,654 | 84.0 | Mainly due to the recognised increase in the refunding of VAT for imported gas with the increase in the import volume | ||||||||||
Investment income |
5,398 | 3,757 | 43.7 | Mainly due to the increase in investment income from associated companies and joint ventures that should be recognised | ||||||||||
Operating profit |
114,637 | 46,581 | 146.1 | Mainly due to the rise in prices of crude oil, refined products and other major products and the increase in the sales of oil and gas products | ||||||||||
Profit before taxation |
101,491 | 40,440 | 151.0 | |||||||||||
Net profit |
63,323 | 29,890 | 111.9 | |||||||||||
Non-operating income |
1,484 | 2,820 | (47.4 | ) | Mainly due to the decrease in compensation for demolition and relocation | |||||||||
Non-operating expenses |
(14,630 | ) | (8,961 | ) | 63.3 | Mainly due to the increase in the loss of disposal of oil and gas assets and fixed assets | ||||||||
Income tax expense |
(38,168 | ) | (10,550 | ) | 261.8 | Mainly due to the increase in taxable amount of income and the relatively high tax rates of certain overseas projects | ||||||||
Net profit attributable to equity holders of the Company |
48,121 | 17,362 | 177.2 | Mainly due to the increase in net profit | ||||||||||
Basic earnings per share (RMB Yuan) |
0.263 | 0.095 | 177.2 | |||||||||||
Diluted earnings per share (RMB Yuan) |
0.263 | 0.095 | 177.2 | |||||||||||
Changes in fair value of investments in other equity instruments |
(111 | ) | | | In accordance with the Accounting Standards for Enterprises No.37 - Presentation of Financial Instruments (Amended), effective from January 1, 2018, the investments in non-tradable equity instruments under available-for-sale financial assets were transferred into investments in other equity instrument, while the comparative financial statements do not need to be adjusted (for details please refer to 3.6 Other significant events). The change was mainly due to the decrease in fair value of other equity instruments became less compared with the previous period | |||||||||
Gains or losses arising from changes in the fair value of available-for-sale financial assets |
| (337 | ) | |
11
Items |
For the nine months ended September 30 |
Changes (%) |
Key explanation of the changes | |||||||||||
2018 | 2017 | |||||||||||||
Other comprehensive income recognised under equity method that may be reclassified to profit or loss |
485 | (254 | ) | | Mainly due to the changes in other comprehensive income of joint ventures | |||||||||
Translation differences arising from translation of foreign currency financial statement |
181 | 3,533 | (94.9 | ) | Mainly due to the appreciation of the Renminbi against the Canadian dollar and the Australian dollar | |||||||||
After-tax amount of other comprehensive income attributable to non-controlling interests |
2,677 | (1,597 | ) | | Mainly due to the appreciation of the US dollar, resulting in the increase in the converted differences in foreign currency statements of oversears subsidiaries | |||||||||
Net cash flows used for financing activities |
(74,702 | ) | (44,886 | ) | 66.4 | Mainly because the Group tightly controlled the interest-bearing debt, repaid borrowings and reduced new borrowings |
12
3.2 | Developments and impacts of significant events as well as the analysis of and explanation for the solutions |
☐Applicable ÖInapplicable
3.3 | Status of fulfilment of undertakings given by the Company and shareholders with a shareholding of 5% or more |
ÖApplicable ☐Inapplicable
During the reporting period, the undertaking given by CNPC, the controlling shareholder of the Company, and the fulfilment thereof were consistent with the information disclosed in the section headed Significant Events of the 2018 Interim Report of the Company. There have been no events affecting the performance of these undertakings.
3.4 | Caution and explanation as to the anticipated accumulated losses or significant changes over the same period of the preceding year |
ÖApplicable ☐Inapplicable
In the first three quarters of 2018, the prices of international crude oil fluctuated with a rising tendency, and the average realised price of the Group during the reporting period rose significantly as compared with the same period of last year, as a result of which the profitability continued to turn better. In the fourth quarter of 2018, it is expected that there will be quite uncertain geopolitical risks and the global oil market will be tightly balanced, with a possibility of demand exceeding supply in a short period, and the international oil prices will continue to fluctuate within a certain range. The net profit attributable to equity holders of the Company for 2018 is expected to increase substantially as compared with the same period of last year.
The above estimation was only preliminary. Please refer to 2018 Annual Report to be officially disclosed by the Company for specific and accurate financial information.
3.5 | Securities Investment |
☐Applicable ÖInapplicable
3.6 | Other Significant Events |
ÖApplicable ☐Inapplicable
3.6.1. | The impact on CAS |
(a) New revenue standard
The Accounting Standards for Business Enterprises No. 14Revenue (Revised) (hereinafter referred to as the new revenue standard) issued by the Ministry of Finance (MOF) in 2017 has replaced the Accounting Standards for Business Enterprises No. 14Revenue and Accounting Standards for Business Enterprises No. 15Construction Contracts issued by MOF in 2006. The Group adopted the new revenue standard from January 1, 2018. The adoption of the new revenue standard exerts no material impact on the Groups accounting policies related to revenue.
Considering the cumulative effect of initial application of the new revenue standard, the adoption of the new revenue standard exerts no material impact on the Groups retained earnings as at January 1, 2018 and comparative information has not been restated. There has been no material impact on each of the line items in the consolidated and company income statements for the nine months ended September 30, 2018 and the consolidated and company balance sheets as at September 30, 2018 compared with the financial statements had the previous policies been applied, except that some line items in the financial statements are reclassified.
13
(b) New financial instruments standards
In 2017, the MOF issued the Accounting Standards for Business Enterprises No. 22Recognition and Measurement of Financial Instruments (Revised), the Accounting Standards for Business Enterprises No. 23Transfer of Financial Instruments (Revised), the Accounting Standards for Business Enterprises No. 24Hedging accounting (Revised) and the Accounting Standards for Business Enterprises No. 37Presentation of Financial Instruments (Revised) (together referred to as new standards on financial instruments). The Group adopted the new financial instruments standards from January 1, 2018, and updated the relevant contents in the group accounting policy accordingly.
The Group did not designate or de-designate any financial asset or financial liability at FVTPL at January 1, 2018. As for the non-trading equity instrument investments used to be classified as available-for-sale financial assets, the Group chooses to irrevocably designate them as carried at fair value and through other comprehensive income (FVTOCI) (not to be carried forward into current profit or loss in the future) which shall be accounted for in Investments in other equity instruments. The closing loss allowance determined in accordance with the old financial instruments standards as at December 31, 2017 is not materially different from the opening loss allowance determined in accordance with the new financial instruments standards as at January 1, 2018. According to CAS, the Group has not adjusted the comparative figures in the financial statements.
(c) Interpretation No.9 to 12
The MOF issued CAS Bulletin No.9Accounting of Net Investment Losses under Equity Method, CAS Bulletin No.10Applying Revenue-based Depreciation Method on Fixed Assets, CAS Bulletin No.11Applying Revenue-based Amortisation Method on Intangible Assets and CAS Bulletin No.12Determination of Whether the Provider and Receiver of Key Management Personnel Services are Related Parties (hereinafter collectively referred to as the CAS Bulletins No.9-12) in 2017.
The Group has reviewed the relevant accounting policies in accordance with the requirements related to the accounting of net investment losses under equity method, the depreciation and amortisation methods of fixed assets and intangible assets and the related party identification and disclosure of key management personnel services of CAS Bulletins No.9-12. The adoption of CAS Bulletins No.9-12 does not have material impact on the financial position and financial performance of the Group.
(d) Presentation of financial statements
The MOF issued the Notice on Revision of the Illustrative Financial Statements for 2018 (Caikuai [2018] No.15) in June 2018.
The Group has prepared financial statements for the nine months ended September 30, 2018 in accordance with Caikuai [2018] No.15 and related interpretation. Presentation of comparative financial statements have been adjusted retrospectively.
According to the above regulations, the Group has combined notes receivable and accounts receivable into notes and accounts receivable, combined construction in progress and construction materials into construction in progress, combined fixed assets and fixed assets liquidation into fixed assets, combined notes payable and accounts payable into notes and accounts payable, combined interest payable, dividends payable and other payables into other payables, presented research and development expenses separately included in the general and administrative expenses originally.
14
Details of changes in accounting policies and its impacts mentioned above, please see Note 4 (30) Changes in Significant Accounting Policies of financial statements prepared in accordance with CAS in the 2018 Interim Report of PetroChina Company Limited.
3.6.2 | The impact on IFRS |
The Group adopted the IFRS 15 Revenue from Contracts with Customers (IFRS 15) and the IFRS 9 Financial Instruments (IFRS 9) from January 1, 2018. The initial adoption of IFRS 15 exerts no material impact on the retained earnings and other financial statements items at the beginning of 2018 and consequently no adjustment has been made to the comparative figures. In accordance with requirements under IFRS 9, the Group has made retrospective adjustment to the classification and measurement of financial instruments (impairment included) and made an assessment on the difference between the original carrying amount and the carrying amount at the date of adoption of the new standards. The initial adoption of IFRS 9 exerts no material impact on the retained earnings and other comprehensive income at the beginning of 2018 and consequently no adjustment has been made to the comparative figures.
Details of changes in accounting policies and its impacts mentioned above, please see Note 4 Changes in Significant Accounting Policies of financial statements prepared in accordance with IFRS in the 2018 Interim Report of PetroChina Company Limited.
3.6.3 | Relevant Documents Relating to the Coordinating and Stable Developments of Natural Gas Promulgated by Chinese Government |
On August 30, 2018, the Chinese government promulgated the Certain Opinions of the State Council on Facilitating the Coordinated and Steady Development of Natural Gas (Guo Fa [2018] No.31, hereinafter referred to as the Opinions). It is required in the Opinions that the upstreams, middle-streams and downstreams of the natural gas industry should be developed in a coordinated way so as to build a production, supply, storage and sale system of natural gas that is based on domestic resources, with diversified sources of imports, perfect deployment of pipeline network, well-matched storage and peak-shaving, reasonable usage structure, safe and reliable operation. It is also required in the Opinions to give effect to the natural gas development plan, speed up the construction of capacity and major infrastructure projects of natural gas, devote more efforts to domestic exploration and development, deepen the oil and gas system reform, regulate use of gas and market order, maintain a good balance between supply and demand by sticking to a market-oriented approach, make full use of such clean energies as natural gas, and promote the replacement of coal by multiple channels and means.
This matter does not affect the continuity of the Groups business operation and the stability of the Groups management, and is helpful to the sustainable and healthy development of the natural gas business of the Group and the continuous improvement of its operating results.
15
By Order of the Board of Directors
PetroChina Company Limited
Wang Yilin
Chairman
Beijing, the PRC
October 30, 2018
As at the date of this announcement, the Board of Directors of the Company comprises Mr. Wang Yilin as the Chairman; Mr. Zhang Jianhua as Vice Chairman and executive director; Mr. Liu Yuezhen, Mr. Liu Hongbin, Mr. Duan Liangwei and Mr. Qin Weizhong as non-executive directors; Mr. Hou Qijun as executive director; and Mr. Lin Boqiang, Mr. Zhang Biyi, Ms. Elsie Leung Oi-sie, Mr. Tokuchi Tatsuhito and Mr. Simon Henry as independent non-executive directors.
This announcement is published in English and Chinese. In the event of any inconsistency between the two versions, the Chinese version shall prevail.
16
4. Appendix
A. Financial statements for the third quarter of 2018 prepared in accordance with CAS
1. Consolidated Balance Sheet
ASSETS |
September 30, 2018 | December 31, 2017 | ||||||
RMB million | RMB million | |||||||
Current assets |
||||||||
Cash at bank and on hand |
166,887 | 136,121 | ||||||
Notes and accounts receivable |
87,813 | 72,358 | ||||||
Advances to suppliers |
27,535 | 10,191 | ||||||
Other receivables |
17,572 | 14,128 | ||||||
Inventories |
176,950 | 144,669 | ||||||
Other current assets |
58,151 | 47,695 | ||||||
|
|
|
|
|||||
Total current assets |
534,908 | 425,162 | ||||||
|
|
|
|
|||||
Non-current assets |
||||||||
Available-for-sale financial assets |
| 1,937 | ||||||
Long-term equity investments |
86,208 | 81,216 | ||||||
Investments in other equity instruments |
932 | | ||||||
Fixed assets |
669,801 | 695,034 | ||||||
Oil and gas properties |
766,617 | 811,604 | ||||||
Construction in progress |
222,039 | 196,192 | ||||||
Intangible assets |
73,323 | 72,913 | ||||||
Goodwill |
42,357 | 41,934 | ||||||
Long-term prepaid expenses |
27,599 | 26,711 | ||||||
Deferred tax assets |
20,859 | 26,724 | ||||||
Other non-current assets |
38,916 | 25,483 | ||||||
|
|
|
|
|||||
Total non-current assets |
1,948,651 | 1,979,748 | ||||||
|
|
|
|
|||||
TOTAL ASSETS |
2,483,559 | 2,404,910 | ||||||
|
|
|
|
|
|
| ||
Chairman | Vice Chairman and President | Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
17
1. Consolidated Balance Sheet (Continued)
LIABILITIES AND SHAREHOLDERS EQUITY |
September 30, 2018 | December 31, 2017 | ||||||
RMB million | RMB million | |||||||
Current liabilities |
||||||||
Short-term borrowings |
89,644 | 93,881 | ||||||
Notes and accounts payable |
227,672 | 235,211 | ||||||
Advances from customers |
| 67,176 | ||||||
Contract liabilities |
78,830 | | ||||||
Employee compensation payable |
15,488 | 6,955 | ||||||
Taxes payable |
58,093 | 57,431 | ||||||
Other payables |
87,726 | 32,804 | ||||||
Current portion of non-current liabilities |
62,158 | 81,536 | ||||||
Other current liabilities |
4,217 | 1,673 | ||||||
|
|
|
|
|||||
Total current liabilities |
623,828 | 576,667 | ||||||
|
|
|
|
|||||
Non-current liabilities |
||||||||
Long-term borrowings |
189,166 | 195,192 | ||||||
Debentures payable |
91,731 | 94,666 | ||||||
Provisions |
138,047 | 131,546 | ||||||
Deferred tax liabilities |
11,165 | 12,667 | ||||||
Other non-current liabilities |
14,371 | 12,562 | ||||||
|
|
|
|
|||||
Total non-current liabilities |
444,480 | 446,633 | ||||||
|
|
|
|
|||||
Total liabilities |
1,068,308 | 1,023,300 | ||||||
|
|
|
|
|||||
Shareholders equity |
||||||||
Share capital |
183,021 | 183,021 | ||||||
Capital surplus |
128,686 | 128,639 | ||||||
Special reserve |
16,103 | 13,366 | ||||||
Other comprehensive income |
(26,878 | ) | (27,433 | ) | ||||
Surplus reserves |
188,769 | 188,769 | ||||||
Undistributed profits |
728,034 | 707,448 | ||||||
|
|
|
|
|||||
Equity attributable to equity holders of the Company |
1,217,735 | 1,193,810 | ||||||
Non-controlling interests |
197,516 | 187,800 | ||||||
|
|
|
|
|||||
Total shareholders equity |
1,415,251 | 1,381,610 | ||||||
|
|
|
|
|||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
2,483,559 | 2,404,910 | ||||||
|
|
|
|
Chairman |
Vice Chairman and President |
Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
18
2. Company Balance Sheet
ASSETS |
September 30, 2018 | December 31, 2017 | ||||||
RMB million | RMB million | |||||||
Current assets |
||||||||
Cash at bank and on hand |
81,214 | 44,432 | ||||||
Notes and accounts receivable |
17,638 | 19,087 | ||||||
Advances to suppliers |
14,289 | 4,065 | ||||||
Other receivables |
16,350 | 25,682 | ||||||
Inventories |
120,519 | 94,439 | ||||||
Other current assets |
52,318 | 33,582 | ||||||
|
|
|
|
|||||
Total current assets |
302,328 | 221,287 | ||||||
|
|
|
|
|||||
Non-current assets |
||||||||
Available-for-sale financial assets |
| 1,339 | ||||||
Long-term equity investments |
385,904 | 382,450 | ||||||
Investments in other equity instruments |
479 | | ||||||
Fixed assets |
320,252 | 331,837 | ||||||
Oil and gas properties |
518,617 | 547,073 | ||||||
Construction in progress |
152,550 | 137,866 | ||||||
Intangible assets |
55,121 | 54,813 | ||||||
Long-term prepaid expenses |
21,881 | 21,768 | ||||||
Deferred tax assets |
16,271 | 23,354 | ||||||
Other non-current assets |
11,851 | 7,672 | ||||||
|
|
|
|
|||||
Total non-current assets |
1,482,926 | 1,508,172 | ||||||
|
|
|
|
|||||
TOTAL ASSETS |
1,785,254 | 1,729,459 | ||||||
|
|
|
|
Chairman |
Vice Chairman and President |
Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
19
2. Company Balance Sheet (Continued)
LIABILITIES AND SHAREHOLDERS EQUITY |
September 30, 2018 | December 31, 2017 | ||||||
RMB million | RMB million | |||||||
Current liabilities |
||||||||
Short-term borrowings |
83,762 | 84,770 | ||||||
Notes and accounts payable |
95,617 | 119,429 | ||||||
Advances from customers |
| 44,435 | ||||||
Contract liabilities |
49,075 | | ||||||
Employee compensation payable |
12,838 | 5,051 | ||||||
Taxes payable |
45,261 | 41,312 | ||||||
Other payables |
88,600 | 24,086 | ||||||
Current portion of non-current liabilities |
50,159 | 63,822 | ||||||
Other current liabilities |
105 | 164 | ||||||
|
|
|
|
|||||
Total current liabilities |
425,417 | 383,069 | ||||||
|
|
|
|
|||||
Non-current liabilities |
||||||||
Long-term borrowings |
79,272 | 94,299 | ||||||
Debentures payable |
85,000 | 85,000 | ||||||
Provisions |
96,569 | 92,137 | ||||||
Other non-current liabilities |
6,880 | 6,268 | ||||||
|
|
|
|
|||||
Total non-current liabilities |
267,721 | 277,704 | ||||||
|
|
|
|
|||||
Total liabilities |
693,138 | 660,773 | ||||||
|
|
|
|
|||||
Shareholders equity |
||||||||
Share capital |
183,021 | 183,021 | ||||||
Capital surplus |
127,872 | 127,881 | ||||||
Special reserve |
9,186 | 7,503 | ||||||
Other comprehensive income |
581 | 352 | ||||||
Surplus reserves |
177,677 | 177,677 | ||||||
Undistributed profits |
593,779 | 572,252 | ||||||
|
|
|
|
|||||
Total shareholders equity |
1,092,116 | 1,068,686 | ||||||
|
|
|
|
|||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
1,785,254 | 1,729,459 | ||||||
|
|
|
|
|
|
| ||
Chairman |
Vice Chairman and President | Chief Financial Officer | ||
Wang Yilin |
Zhang Jianhua | Chai Shouping |
20
3-1. Consolidated Income Statement
Three months ended September 30 | ||||||||
2018 | 2017 | |||||||
Items |
RMB million | RMB million | ||||||
Operating income |
601,111 | 481,795 | ||||||
Less: Cost of sales |
(456,062 | ) | (376,499 | ) | ||||
Taxes and surcharges |
(56,543 | ) | (51,312 | ) | ||||
Selling expenses |
(16,918 | ) | (16,522 | ) | ||||
General and administrative expenses |
(17,698 | ) | (15,536 | ) | ||||
Research and development expenses |
(2,942 | ) | (3,246 | ) | ||||
Finance expenses |
(4,504 | ) | (5,828 | ) | ||||
Including: Interest expenses |
(5,581 | ) | (5,517 | ) | ||||
Interest income |
1,038 | 658 | ||||||
Asset impairment losses |
(148 | ) | (128 | ) | ||||
Credit losses |
6 | | ||||||
Add: Other income |
2,288 | 1,153 | ||||||
Investment income |
1,459 | 1,287 | ||||||
Including: Income from investment in associates and joint ventures |
1,320 | 1,267 | ||||||
Gains/(losses) from asset disposal |
14 | (132 | ) | |||||
|
|
|
|
|||||
Operating profit |
50,063 | 15,032 | ||||||
|
|
|
|
|||||
Add: Non-operating income |
606 | 1,108 | ||||||
Less: Non-operating expenses |
(9,584 | ) | (3,529 | ) | ||||
|
|
|
|
|||||
Profit before taxation |
41,085 | 12,611 | ||||||
|
|
|
|
|||||
Less: Taxation |
(15,102 | ) | (3,682 | ) | ||||
|
|
|
|
|||||
Net profit |
25,983 | 8,929 | ||||||
|
|
|
|
|||||
Classified by continuity of operations: |
||||||||
Net profit from continuous operation |
25,983 | 8,929 | ||||||
Net profit from discontinued operation |
| | ||||||
Classified by ownership: |
||||||||
Shareholders of the Company |
21,035 | 4,688 | ||||||
Non-controlling interests |
4,948 | 4,241 | ||||||
Earnings per share |
||||||||
Basic earnings per share (RMB Yuan) |
0.115 | 0.026 | ||||||
Diluted earnings per share (RMB Yuan) |
0.115 | 0.026 | ||||||
|
|
|
|
|||||
Other comprehensive income |
5,517 | 1,156 | ||||||
|
|
|
|
|||||
Other comprehensive income attributable to equity holders of the Company, net of tax |
3,733 | 2,068 | ||||||
|
|
|
|
|||||
(1) Items that will not be reclassified to profit or loss: |
||||||||
Changes in fair value of investments in other equity instruments |
(11 | ) | | |||||
(2) Items that may be reclassified to profit or loss: |
||||||||
Share of other comprehensive income of equity-accounted investee |
489 | (130 | ) | |||||
Gains or losses arising from changes in fair value of available-for-sale financial assets |
| (359 | ) | |||||
Translation differences arising from translation of foreign currency financial statements |
3,255 | 2,557 | ||||||
Other comprehensive income (net of tax) attributable to non-controlling interests |
1,784 | (912 | ) | |||||
|
|
|
|
|||||
Total comprehensive income |
31,500 | 10,085 | ||||||
|
|
|
|
|||||
Attributable to: |
||||||||
Equity holders of the Company |
24,768 | 6,756 | ||||||
Non-controlling interests |
6,732 | 3,329 | ||||||
|
|
|
|
Chairman |
Vice Chairman and President |
Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
21
3-2. Consolidated Income Statement
Nine months ended September 30 | ||||||||
2018 | 2017 | |||||||
Items |
RMB million | RMB million | ||||||
Operating income |
1,709,933 | 1,457,704 | ||||||
Less: Cost of sales |
(1,326,850 | ) | (1,153,646 | ) | ||||
Taxes and surcharges |
(160,088 | ) | (145,945 | ) | ||||
Selling expenses |
(47,880 | ) | (46,660 | ) | ||||
General and administrative expenses |
(49,321 | ) | (46,205 | ) | ||||
Research and development expenses |
(9,026 | ) | (8,624 | ) | ||||
Finance expenses |
(14,211 | ) | (17,156 | ) | ||||
Including: Interest expenses |
(16,690 | ) | (16,849 | ) | ||||
Interest income |
2,472 | 1,847 | ||||||
Asset impairment losses |
(162 | ) | (393 | ) | ||||
Credit losses |
11 | | ||||||
Add: Other income |
6,724 | 3,654 | ||||||
Investment income |
5,398 | 3,757 | ||||||
Including: Income from investment in associates and joint ventures |
5,144 | 3,482 | ||||||
Gains from asset disposal |
109 | 95 | ||||||
|
|
|
|
|||||
Operating profit |
114,637 | 46,581 | ||||||
|
|
|
|
|||||
Add: Non-operating income |
1,484 | 2,820 | ||||||
Less: Non-operating expenses |
(14,630 | ) | (8,961 | ) | ||||
|
|
|
|
|||||
Profit before taxation |
101,491 | 40,440 | ||||||
|
|
|
|
|||||
Less: Taxation |
(38,168 | ) | (10,550 | ) | ||||
|
|
|
|
|||||
Net profit |
63,323 | 29,890 | ||||||
|
|
|
|
|||||
Classified by continuity of operations: |
||||||||
Net profit from continuous operation |
63,323 | 29,890 | ||||||
Net profit from discontinued operation |
| | ||||||
Classified by ownership: |
||||||||
Shareholders of the Company |
48,121 | 17,362 | ||||||
Non-controlling interests |
15,202 | 12,528 | ||||||
Earnings per share |
||||||||
Basic earnings per share (RMB Yuan) |
0.263 | 0.095 | ||||||
Diluted earnings per share (RMB Yuan) |
0.263 | 0.095 | ||||||
|
|
|
|
|||||
Other comprehensive income |
3,232 | 1,345 | ||||||
|
|
|
|
|||||
Other comprehensive income attributable to equity holders of the Company, net of tax |
555 | 2,942 | ||||||
|
|
|
|
|||||
(1) Items that will not be reclassified to profit or loss: |
||||||||
Changes in fair value of investments in other equity instruments |
(111 | ) | | |||||
(2) Items that may be reclassified to profit or loss: |
||||||||
Share of other comprehensive income of equity-accounted investee |
485 | (254 | ) | |||||
Gains or losses arising from changes in fair value of available-for-sale financial assets |
| (337 | ) | |||||
Translation differences arising from translation of foreign currency financial statements |
181 | 3,533 | ||||||
Other comprehensive income (net of tax) attributable to non-controlling interests |
2,677 | (1,597 | ) | |||||
|
|
|
|
|||||
Total comprehensive income |
66,555 | 31,235 | ||||||
|
|
|
|
|||||
Attributable to: |
||||||||
Equity holders of the Company |
48,676 | 20,304 | ||||||
Non-controlling interests |
17,879 | 10,931 | ||||||
|
|
|
|
|
|
| ||
Chairman | Vice Chairman and President | Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
22
4-1. Income Statement
Three months ended September 30 | ||||||||
2018 | 2017 | |||||||
Items |
RMB million | RMB million | ||||||
Operating income |
342,092 | 307,588 | ||||||
Less: Cost of sales |
(245,079 | ) | (236,415 | ) | ||||
Taxes and surcharges |
(44,338 | ) | (43,150 | ) | ||||
Selling expenses |
(11,962 | ) | (11,824 | ) | ||||
General and administrative expenses |
(12,478 | ) | (10,508 | ) | ||||
Research and development expenses |
(2,142 | ) | (2,478 | ) | ||||
Finance expenses |
(3,934 | ) | (4,284 | ) | ||||
Including: Interest expenses |
(4,322 | ) | (4,453 | ) | ||||
Interest income |
422 | 424 | ||||||
Asset impairment losses |
(135 | ) | (1 | ) | ||||
Credit losses |
5 | | ||||||
Add: Other income |
1,863 | 984 | ||||||
Investment income |
3,935 | 3,459 | ||||||
Including: Income from investment in associates and joint ventures |
663 | 767 | ||||||
Gains/(losses) from asset disposal |
17 | (101 | ) | |||||
|
|
|
|
|||||
Operating profit |
27,844 | 3,270 | ||||||
|
|
|
|
|||||
Add: Non-operating income |
495 | 802 | ||||||
Less: Non-operating expenses |
(5,196 | ) | (702 | ) | ||||
|
|
|
|
|||||
Profit before taxation |
23,143 | 3,370 | ||||||
|
|
|
|
|||||
Less: Taxation |
(8,055 | ) | 303 | |||||
|
|
|
|
|||||
Net profit |
15,088 | 3,673 | ||||||
|
|
|
|
|||||
Classified by continuity of operations: |
||||||||
Net profit from continuous operation |
15,088 | 3,673 | ||||||
Net profit from discontinued operation |
| | ||||||
|
|
|
|
|||||
Earnings per share |
||||||||
Basic earnings per share (RMB Yuan) |
0.082 | 0.020 | ||||||
Diluted earnings per share (RMB Yuan) |
0.082 | 0.020 | ||||||
|
|
|
|
|||||
Other comprehensive income |
261 | (116 | ) | |||||
|
|
|
|
|||||
Other comprehensive income attributable to equity holders of the Company, net of tax |
261 | (116 | ) | |||||
|
|
|
|
|||||
(1) Items that will not be reclassified to profit or loss: |
||||||||
Changes in fair value of investments in other equity instruments |
(1 | ) | | |||||
(2) Items that may be reclassified to profit or loss: |
||||||||
Share of other comprehensive income of equity-accounted investee |
262 | (133 | ) | |||||
Gains or losses arising from changes in fair value of available-for-sale financial assets |
| 17 | ||||||
|
|
|
|
|||||
Total comprehensive income |
15,349 | 3,557 | ||||||
|
|
|
|
|
|
| ||
Chairman | Vice Chairman and President | Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
23
4-2. Income Statement
Nine months ended September 30 | ||||||||
2018 | 2017 | |||||||
Items |
RMB million | RMB million | ||||||
Operating income |
991,938 | 877,647 | ||||||
Less: Cost of sales |
(732,186 | ) | (675,164 | ) | ||||
Taxes and surcharges |
(127,145 | ) | (124,310 | ) | ||||
Selling expenses |
(33,457 | ) | (32,618 | ) | ||||
General and administrative expenses |
(33,135 | ) | (31,400 | ) | ||||
Research and development expenses |
(7,515 | ) | (7,267 | ) | ||||
Finance expenses |
(12,206 | ) | (13,101 | ) | ||||
Including: Interest expenses |
(12,923 | ) | (13,509 | ) | ||||
Interest income |
913 | 1,043 | ||||||
Asset impairment losses |
(176 | ) | (223 | ) | ||||
Credit losses |
12 | | ||||||
Add: Other income |
4,914 | 2,709 | ||||||
Investment income |
28,139 | 22,336 | ||||||
Including: Income from investment in associates and joint ventures |
3,069 | 2,416 | ||||||
Gains from asset disposal |
126 | 98 | ||||||
|
|
|
|
|||||
Operating profit |
79,309 | 18,707 | ||||||
|
|
|
|
|||||
Add: Non-operating income |
1,150 | 2,126 | ||||||
Less: Non-operating expenses |
(8,885 | ) | (3,549 | ) | ||||
|
|
|
|
|||||
Profit before taxation |
71,574 | 17,284 | ||||||
|
|
|
|
|||||
Less: Taxation |
(22,675 | ) | 1,583 | |||||
|
|
|
|
|||||
Net profit |
48,899 | 18,867 | ||||||
|
|
|
|
|||||
Classified by continuity of operations: |
||||||||
Net profit from continuous operation |
48,899 | 18,867 | ||||||
Net profit from discontinued operation |
| | ||||||
|
|
|
|
|||||
Earnings per share |
||||||||
Basic earnings per share (RMB Yuan) |
0.267 | 0.103 | ||||||
Diluted earnings per share (RMB Yuan) |
0.267 | 0.103 | ||||||
|
|
|
|
|||||
Other comprehensive income |
229 | (239 | ) | |||||
|
|
|
|
|||||
Other comprehensive income attributable to equity holders of the Company, net of tax |
229 | (239 | ) | |||||
|
|
|
|
|||||
(1) Items that will not be reclassified to profit or loss: |
||||||||
Changes in fair value of investments in other equity instruments |
(30 | ) | | |||||
(2) Items that may be reclassified to profit or loss: |
||||||||
Share of other comprehensive income of equity-accounted investee |
259 | (254 | ) | |||||
Gains or losses arising from changes in fair value of available-for-sale financial assets |
| 15 | ||||||
|
|
|
|
|||||
Total comprehensive income |
49,128 | 18,628 | ||||||
|
|
|
|
|
|
| ||
Chairman | Vice Chairman and President | Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
24
5. Consolidated Cash Flow Statement
Items |
Nine months ended September 30 | |||||||
2018 | 2017 | |||||||
RMB million | RMB million | |||||||
Cash flows from operating activities |
||||||||
Cash received from sales of goods and rendering of services |
1,987,593 | 1,688,806 | ||||||
Refund of taxes |
4,595 | 2,883 | ||||||
Cash received relating to other operating activities |
2,791 | 3,566 | ||||||
|
|
|
|
|||||
Sub-total of cash inflows |
1,994,979 | 1,695,255 | ||||||
|
|
|
|
|||||
Cash paid for goods and services |
(1,341,748 | ) | (1,079,824 | ) | ||||
Cash paid to and on behalf of employees |
(83,920 | ) | (79,610 | ) | ||||
Payments of various taxes |
(250,420 | ) | (248,766 | ) | ||||
Cash paid relating to other operating activities |
(61,954 | ) | (42,760 | ) | ||||
|
|
|
|
|||||
Sub-total of cash outflows |
(1,738,042 | ) | (1,450,960 | ) | ||||
|
|
|
|
|||||
Net cash flows from operating activities |
256,937 | 244,295 | ||||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Cash received from disposal of investments |
10,913 | 2,155 | ||||||
Cash received from returns on investments |
4,573 | 3,263 | ||||||
Net cash received from disposal of fixed assets, oil and gas properties, intangible assets and other long-term assets |
339 | 219 | ||||||
|
|
|
|
|||||
Sub-total of cash inflows |
15,825 | 5,637 | ||||||
|
|
|
|
|||||
Cash paid to acquire fixed assets, oil and gas properties, intangible assets and other long-term assets |
(156,036 | ) | (128,037 | ) | ||||
Cash paid to acquire investments |
(13,533 | ) | (7,288 | ) | ||||
|
|
|
|
|||||
Sub-total of cash outflows |
(169,569 | ) | (135,325 | ) | ||||
|
|
|
|
|||||
Net cash flows used for investing activities |
(153,744 | ) | (129,688 | ) | ||||
|
|
|
|
|
|
| ||
Chairman | Vice Chairman and President | Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
25
5. Consolidated Cash Flow Statement (Continued)
Items |
Nine months ended September 30 | |||||||
2018 | 2017 | |||||||
RMB million | RMB million | |||||||
Cash flows from financing activities |
||||||||
Cash received from capital contributions |
877 | 320 | ||||||
Including: Cash received from non-controlling interests capital contributions to subsidiaries |
877 | 320 | ||||||
Cash received from borrowings |
575,157 | 591,295 | ||||||
Cash received relating to other financing activities |
58 | 47 | ||||||
|
|
|
|
|||||
Sub-total of cash inflows |
576,092 | 591,662 | ||||||
|
|
|
|
|||||
Cash repayments of borrowings |
(614,093 | ) | (604,412 | ) | ||||
Cash payments for interest expenses and distribution of dividends or profits |
(36,615 | ) | (31,682 | ) | ||||
Including: Subsidiaries cash payments for distribution of dividends or profits to non-controlling interests |
(6,872 | ) | (9,689 | ) | ||||
Capital reduction of subsidiaries |
(86 | ) | (5 | ) | ||||
Cash payments relating to other financing activities |
| (449 | ) | |||||
|
|
|
|
|||||
Sub-total of cash outflows |
(650,794 | ) | (636,548 | ) | ||||
|
|
|
|
|||||
Net cash flows used for financing activities |
(74,702 | ) | (44,886 | ) | ||||
|
|
|
|
|||||
Effect of foreign exchange rate changes on cash and cash equivalents |
3,192 | (2,501 | ) | |||||
|
|
|
|
|||||
Net increase in cash and cash equivalents |
31,683 | 67,220 | ||||||
Add: Cash and cash equivalents at beginning of the period |
136,121 | 97,931 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of the period |
167,804 | 165,151 | ||||||
|
|
|
|
|
|
| ||
Chairman | Vice Chairman and President | Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
26
6. Company Cash Flow Statement
Items |
Nine months ended September 30 | |||||||
2018 | 2017 | |||||||
RMB million | RMB million | |||||||
Cash flows from operating activities |
||||||||
Cash received from sales of goods and rendering of services |
1,155,062 | 1,021,857 | ||||||
Refund of taxes |
3,282 | 1,850 | ||||||
Cash received relating to other operating activities |
27,271 | 2,617 | ||||||
|
|
|
|
|||||
Sub-total of cash inflows |
1,185,615 | 1,026,324 | ||||||
|
|
|
|
|||||
Cash paid for goods and services |
(726,504 | ) | (610,010 | ) | ||||
Cash paid to and on behalf of employees |
(58,759 | ) | (57,000 | ) | ||||
Payments of various taxes |
(208,555 | ) | (190,033 | ) | ||||
Cash paid relating to other operating activities |
(19,769 | ) | (24,304 | ) | ||||
|
|
|
|
|||||
Sub-total of cash outflows |
(1,013,587 | ) | (881,347 | ) | ||||
|
|
|
|
|||||
Net cash flows from operating activities |
172,028 | 144,977 | ||||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Cash received from disposal of investments |
30,256 | 8,870 | ||||||
Cash received from returns on investments |
26,480 | 24,247 | ||||||
Net cash received from disposal of fixed assets, oil and gas properties, intangible assets and other long-term assets |
292 | 200 | ||||||
|
|
|
|
|||||
Sub-total of cash inflows |
57,028 | 33,317 | ||||||
|
|
|
|
|||||
Cash paid to acquire fixed assets, oil and gas properties, intangible assets and other long-term assets |
(108,863 | ) | (79,288 | ) | ||||
Cash paid to acquire investments |
(29,551 | ) | (9,916 | ) | ||||
|
|
|
|
|||||
Sub-total of cash outflows |
(138,414 | ) | (89,204 | ) | ||||
|
|
|
|
|||||
Net cash flows used for investing activities |
(81,386 | ) | (55,887 | ) | ||||
|
|
|
|
|
|
| ||
Chairman | Vice Chairman and President | Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
27
6. Company Cash Flow Statement (Continued)
Items |
Nine months ended September 30 | |||||||
2018 | 2017 | |||||||
RMB million | RMB million | |||||||
Cash flows from financing activities |
||||||||
Cash received from borrowings |
145,769 | 247,160 | ||||||
Cash received relating to other financing activities |
13 | 47 | ||||||
|
|
|
|
|||||
Sub-total of cash inflows |
145,782 | 247,207 | ||||||
|
|
|
|
|||||
Cash repayments of borrowings |
(175,581 | ) | (246,095 | ) | ||||
Cash payments for interest expenses and distribution of dividends or profits |
(24,061 | ) | (20,881 | ) | ||||
|
|
|
|
|||||
Sub-total of cash outflows |
(199,642 | ) | (266,976 | ) | ||||
|
|
|
|
|||||
Net cash flows used for financing activities |
(53,860 | ) | (19,769 | ) | ||||
|
|
|
|
|||||
Net increase in cash and cash equivalents |
36,782 | 69,321 | ||||||
Add: Cash and cash equivalents at beginning of the period |
44,432 | 15,201 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of the period |
81,214 | 84,522 | ||||||
|
|
|
|
|
|
| ||
Chairman | Vice Chairman and President | Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
28
B. Financial statements for the third quarter of 2018 prepared in accordance with IFRS | ||||||||
1-1 Consolidated Statement of Comprehensive Income | ||||||||
Three months ended September 30 | ||||||||
2018 | 2017 | |||||||
RMB million | RMB million | |||||||
REVENUE |
601,111 | 481,795 | ||||||
|
|
|
|
|||||
OPERATING EXPENSES |
||||||||
Purchases, services and other |
(383,576 | ) | (307,208 | ) | ||||
Employee compensation costs |
(34,158 | ) | (29,081 | ) | ||||
Exploration expenses, including exploratory dry holes |
(5,258 | ) | (6,952 | ) | ||||
Depreciation, depletion and amortisation |
(52,059 | ) | (48,936 | ) | ||||
Selling, general and administrative expenses |
(18,693 | ) | (19,565 | ) | ||||
Taxes other than income taxes |
(56,920 | ) | (51,614 | ) | ||||
Other expense, net |
(6,460 | ) | (1,562 | ) | ||||
|
|
|
|
|||||
TOTAL OPERATING EXPENSES |
(557,124 | ) | (464,918 | ) | ||||
|
|
|
|
|||||
PROFIT FROM OPERATIONS |
43,987 | 16,877 | ||||||
|
|
|
|
|||||
FINANCE COSTS |
||||||||
Exchange gain |
4,983 | 2,676 | ||||||
Exchange loss |
(4,662 | ) | (3,343 | ) | ||||
Interest income |
1,038 | 658 | ||||||
Interest expense |
(5,581 | ) | (5,517 | ) | ||||
|
|
|
|
|||||
TOTAL NET FINANCE COSTS |
(4,222 | ) | (5,526 | ) | ||||
|
|
|
|
|||||
SHARE OF PROFIT OF ASSOCIATES AND JOINT VENTURES |
1,320 | 1,262 | ||||||
|
|
|
|
|||||
PROFIT BEFORE INCOME TAX EXPENSE |
41,085 | 12,613 | ||||||
INCOME TAX EXPENSE |
(15,101 | ) | (3,682 | ) | ||||
|
|
|
|
|||||
PROFIT FOR THE PERIOD |
25,984 | 8,931 | ||||||
|
|
|
|
|||||
OTHER COMPREHENSIVE INCOME |
||||||||
Items that will not be reclassified to profit or loss |
||||||||
Fair value loss from financial assets measured at fair value through other comprehensive income |
(12 | ) | | |||||
Items that are or may be reclassified subsequently to profit or loss |
||||||||
Currency translation differences |
5,040 | 1,638 | ||||||
Fair value gains or losses from available-for-sale financial assets, net of tax |
| (352 | ) | |||||
Share of the other comprehensive income/(loss) of associates and joint ventures accounted for using the equity method |
489 | (130 | ) | |||||
|
|
|
|
|||||
OTHER COMPREHENSIVE INCOME , NET OF TAX |
5,517 | 1,156 | ||||||
|
|
|
|
|||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
31,501 | 10,087 | ||||||
|
|
|
|
|||||
PROFIT FOR THE PERIOD ATTRIBUTABLE TO: |
||||||||
Owners of the Company |
21,036 | 4,690 | ||||||
Non-controlling interests |
4,948 | 4,241 | ||||||
|
|
|
|
|||||
25,984 | 8,931 | |||||||
|
|
|
|
|||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: |
||||||||
Owners of the Company |
24,769 | 6,758 | ||||||
Non-controlling interests |
6,732 | 3,329 | ||||||
|
|
|
|
|||||
31,501 | 10,087 | |||||||
|
|
|
|
|||||
BASIC AND DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY (RMB) |
0.115 | 0.026 | ||||||
|
|
|
|
29
1-2 Consolidated Statement of Comprehensive Income | ||||||||
Nine months ended September 30 | ||||||||
2018 | 2017 | |||||||
RMB million | RMB million | |||||||
REVENUE |
1,709,933 | 1,457,704 | ||||||
|
|
|
|
|||||
OPERATING EXPENSES |
||||||||
Purchases, services and other |
(1,102,623 | ) | (937,764 | ) | ||||
Employee compensation costs |
(92,453 | ) | (84,821 | ) | ||||
Exploration expenses, including exploratory dry holes |
(16,017 | ) | (13,811 | ) | ||||
Depreciation, depletion and amortisation |
(166,433 | ) | (165,046 | ) | ||||
Selling, general and administrative expenses |
(55,550 | ) | (53,951 | ) | ||||
Taxes other than income taxes |
(161,076 | ) | (146,986 | ) | ||||
Other expense, net |
(5,903 | ) | (1,965 | ) | ||||
|
|
|
|
|||||
TOTAL OPERATING EXPENSES |
(1,600,055 | ) | (1,404,344 | ) | ||||
|
|
|
|
|||||
PROFIT FROM OPERATIONS |
109,878 | 53,360 | ||||||
|
|
|
|
|||||
FINANCE COSTS |
||||||||
Exchange gain |
13,257 | 6,185 | ||||||
Exchange loss |
(12,567 | ) | (7,576 | ) | ||||
Interest income |
2,472 | 1,847 | ||||||
Interest expense |
(16,690 | ) | (16,849 | ) | ||||
|
|
|
|
|||||
TOTAL NET FINANCE COSTS |
(13,528 | ) | (16,393 | ) | ||||
|
|
|
|
|||||
SHARE OF PROFIT OF ASSOCIATES AND JOINT VENTURES |
5,144 | 3,477 | ||||||
|
|
|
|
|||||
PROFIT BEFORE INCOME TAX EXPENSE |
101,494 | 40,444 | ||||||
INCOME TAX EXPENSE |
(38,168 | ) | (10,550 | ) | ||||
|
|
|
|
|||||
PROFIT FOR THE PERIOD |
63,326 | 29,894 | ||||||
|
|
|
|
|||||
OTHER COMPREHENSIVE INCOME |
||||||||
Items that will not be reclassified to profit or loss |
||||||||
Fair value loss from financial assets measured at fair value through other comprehensive income |
(134 | ) | | |||||
Items that are or may be reclassified subsequently to profit or loss |
||||||||
Currency translation differences |
2,881 | 1,954 | ||||||
Fair value gains or losses from available-for-sale financial assets, net of tax |
| (355 | ) | |||||
Share of the other comprehensive income/(loss) of associates and joint ventures accounted for using the equity method |
485 | (254 | ) | |||||
|
|
|
|
|||||
OTHER COMPREHENSIVE INCOME, NET OF TAX |
3,232 | 1,345 | ||||||
|
|
|
|
|||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
66,558 | 31,239 | ||||||
|
|
|
|
|||||
PROFIT FOR THE PERIOD ATTRIBUTABLE TO: |
||||||||
Owners of the Company |
48,124 | 17,366 | ||||||
Non-controlling interests |
15,202 | 12,528 | ||||||
|
|
|
|
|||||
63,326 | 29,894 | |||||||
|
|
|
|
|||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: |
||||||||
Owners of the Company |
48,679 | 20,308 | ||||||
Non-controlling interests |
17,879 | 10,931 | ||||||
|
|
|
|
|||||
66,558 | 31,239 | |||||||
|
|
|
|
|||||
BASIC AND DILUTED EARNINGS PER SHARE FOR PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY (RMB) |
0.263 | 0.095 | ||||||
|
|
|
|
30
2. Consolidated Statement of Financial Position
September 30, 2018 | December 31, 2017 | |||||||
RMB million | RMB million | |||||||
NON-CURRENT ASSETS |
||||||||
Property, plant and equipment |
1,658,442 | 1,702,813 | ||||||
Investments in associates and joint ventures |
86,143 | 81,159 | ||||||
Available-for-sale financial assets |
| 1,917 | ||||||
Financial assets measured at fair value through other comprehensive income |
912 | | ||||||
Advance operating lease payments |
75,386 | 73,896 | ||||||
Intangible and other non-current assets |
103,515 | 92,941 | ||||||
Deferred tax assets |
20,859 | 26,724 | ||||||
Time deposits with maturities over one year |
3,100 | | ||||||
|
|
|
|
|||||
TOTAL NON-CURRENT ASSETS |
1,948,357 | 1,979,450 | ||||||
|
|
|
|
|||||
CURRENT ASSETS |
||||||||
Inventories |
176,950 | 144,669 | ||||||
Accounts receivable |
69,874 | 53,143 | ||||||
Prepayment and other current assets |
103,258 | 72,014 | ||||||
Notes receivable |
17,939 | 19,215 | ||||||
Time deposits with maturities over three months but within one year |
12,427 | 13,344 | ||||||
Cash and cash equivalents |
154,460 | 122,777 | ||||||
|
|
|
|
|||||
TOTAL CURRENT ASSETS |
534,908 | 425,162 | ||||||
|
|
|
|
|||||
CURRENT LIABILITIES |
||||||||
Accounts payable and accrued liabilities |
335,103 | 343,819 | ||||||
Contract liabilities |
78,830 | | ||||||
Income taxes payable |
22,215 | 9,533 | ||||||
Other taxes payable |
35,878 | 47,898 | ||||||
Short-term borrowings |
151,802 | 175,417 | ||||||
|
|
|
|
|||||
TOTAL CURRENT LIABILITIES |
623,828 | 576,667 | ||||||
|
|
|
|
|||||
NET CURRENT LIABILITIES |
(88,920 | ) | (151,505 | ) | ||||
|
|
|
|
|||||
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,859,437 | 1,827,945 | ||||||
|
|
|
|
|||||
EQUITY |
||||||||
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY: |
||||||||
Share capital |
183,021 | 183,021 | ||||||
Retained earnings |
733,026 | 712,437 | ||||||
Reserves |
301,401 | 298,062 | ||||||
|
|
|
|
|||||
TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY |
1,217,448 | 1,193,520 | ||||||
NON-CONTROLLING INTERESTS |
197,515 | 187,799 | ||||||
|
|
|
|
|||||
TOTAL EQUITY |
1,414,963 | 1,381,319 | ||||||
|
|
|
|
|||||
NON-CURRENT LIABILITIES |
||||||||
Long-term borrowings |
280,897 | 289,858 | ||||||
Asset retirement obligations |
138,047 | 131,546 | ||||||
Deferred tax liabilities |
11,159 | 12,660 | ||||||
Other long-term obligations |
14,371 | 12,562 | ||||||
|
|
|
|
|||||
TOTAL NON-CURRENT LIABILITIES |
444,474 | 446,626 | ||||||
|
|
|
|
|||||
TOTAL EQUITY AND NON-CURRENT LIABILITIES |
1,859,437 | 1,827,945 | ||||||
|
|
|
|
|
|
| ||
Chairman | Vice Chairman and President | Chief Financial Officer | ||
Wang Yilin | Zhang Jianhua | Chai Shouping |
31
3. Consolidated Statement of Cash Flows
Nine months ended September 30 | ||||||||
2018 | 2017 | |||||||
RMB million | RMB million | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Profit for the period |
63,326 | 29,894 | ||||||
Adjustments for: |
||||||||
Income tax expense |
38,168 | 10,550 | ||||||
Depreciation, depletion and amortisation |
166,433 | 165,175 | ||||||
Capitalised exploratory costs charged to expense |
8,167 | 9,128 | ||||||
Safety fund reserve |
2,851 | 2,997 | ||||||
Share of profit of associates and joint ventures |
(5,144 | ) | (3,483 | ) | ||||
Reversal of provision for impairment of receivables, net |
(12 | ) | (18 | ) | ||||
Write down in inventories, net |
115 | 283 | ||||||
Loss/(gain) on disposal of property, plant and equipment |
7,145 | (16 | ) | |||||
Gain on disposal of other non-current assets |
(141 | ) | (76 | ) | ||||
Loss on disposal of associates and joint ventures |
| (2 | ) | |||||
Dividend income |
(640 | ) | | |||||
Interest income |
(2,472 | ) | (1,847 | ) | ||||
Interest expense |
16,690 | 16,849 | ||||||
Changes in working capital: |
||||||||
Accounts receivable, prepayments and other current assets |
(54,346 | ) | (37,045 | ) | ||||
Inventories |
(32,395 | ) | 10,530 | |||||
Accounts payable and accrued liabilities |
71,882 | 66,042 | ||||||
Contract liabilities |
11,654 | | ||||||
|
|
|
|
|||||
CASH FLOWS GENERATED FROM OPERATIONS |
291,281 | 268,961 | ||||||
Income taxes paid |
(34,344 | ) | (24,666 | ) | ||||
|
|
|
|
|||||
NET CASH FLOWS FROM OPERATING ACTIVITIES |
256,937 | 244,295 | ||||||
|
|
|
|
32
3. Consolidated Statement of Cash Flows (Continued)
Nine months ended September 30 | ||||||||
2018 | 2017 | |||||||
RMB million | RMB million | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Capital expenditures |
(148,080 | ) | (124,552 | ) | ||||
Acquisition of investments in associates and joint ventures |
(630 | ) | (1,300 | ) | ||||
Acquisition of available-for-sale financial assets |
| (4 | ) | |||||
Prepayments on long-term operating leases |
(3,116 | ) | (2,235 | ) | ||||
Acquisition of intangible assets and other non-current assets |
(4,840 | ) | (1,250 | ) | ||||
Proceeds from disposal of property, plant and equipment |
256 | 208 | ||||||
Purchase of non-controlling interests |
(3 | ) | (2 | ) | ||||
Acquisition of subsidiaries |
| (14 | ) | |||||
Proceeds from disposal of other non-current assets |
137 | 79 | ||||||
Interest received |
1,991 | 1,322 | ||||||
Dividends received |
2,582 | 1,941 | ||||||
Decrease in time deposits with maturities over three months |
(2,041 | ) | (3,881 | ) | ||||
|
|
|
|
|||||
NET CASH FLOWS USED FOR INVESTING ACTIVITIES |
(153,744 | ) | (129,688 | ) | ||||
|
|
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Repayments of short-term borrowings |
(477,468 | ) | (460,246 | ) | ||||
Repayments of long-term borrowings |
(136,625 | ) | (144,166 | ) | ||||
Interest paid |
(14,568 | ) | (14,554 | ) | ||||
Dividends paid to non-controlling interests |
(6,872 | ) | (9,689 | ) | ||||
Dividends paid to owners of the Company |
(15,175 | ) | (7,439 | ) | ||||
Increase in short-term borrowings |
471,294 | 477,649 | ||||||
Increase in long-term borrowings |
103,863 | 113,646 | ||||||
Capital contribution from non-controlling interests |
877 | 320 | ||||||
Payments to non-controlling interests due to capital reduction of subsidiaries |
(86 | ) | (5 | ) | ||||
Increase/(decrease) in other long-term obligations |
58 | (402 | ) | |||||
|
|
|
|
|||||
NET CASH FLOWS FROM FINANCING ACTIVITIES |
(74,702 | ) | (44,886 | ) | ||||
|
|
|
|
|||||
TRANSLATION OF FOREIGN CURRENCY |
3,192 | (2,501 | ) | |||||
|
|
|
|
|||||
Increase in cash and cash equivalents |
31,683 | 67,220 | ||||||
Cash and cash equivalents at beginning of the period |
122,777 | 97,931 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of the period |
154,460 | 165,151 | ||||||
|
|
|
|
33
4. Segment Information
Nine months ended September 30 | ||||||||
2018 | 2017 | |||||||
RMB million | RMB million | |||||||
Revenue |
||||||||
Exploration and Production |
||||||||
Intersegment sales |
388,257 | 293,888 | ||||||
Revenue from external customers |
84,869 | 66,509 | ||||||
|
|
|
|
|||||
473,126 | 360,397 | |||||||
Refining and Chemicals |
||||||||
Intersegment sales |
506,813 | 384,114 | ||||||
Revenue from external customers |
130,813 | 127,821 | ||||||
|
|
|
|
|||||
637,626 | 511,935 | |||||||
Marketing |
||||||||
Intersegment sales |
196,830 | 127,201 | ||||||
Revenue from external customers |
1,268,196 | 1,078,449 | ||||||
|
|
|
|
|||||
1,465,026 | 1,205,650 | |||||||
Natural Gas and Pipeline |
||||||||
Intersegment sales |
24,634 | 22,423 | ||||||
Revenue from external customers |
225,396 | 184,155 | ||||||
|
|
|
|
|||||
250,030 | 206,578 | |||||||
Head Office and Other |
||||||||
Intersegment sales |
134 | 167 | ||||||
Revenue from external customers |
659 | 770 | ||||||
|
|
|
|
|||||
793 | 937 | |||||||
Total revenue from external customers |
1,709,933 | 1,457,704 | ||||||
|
|
|
|
|||||
Profit/(loss) from operations |
||||||||
Exploration and Production |
57,884 | 10,983 | ||||||
Refining and Chemicals |
36,631 | 27,732 | ||||||
Marketing |
6,424 | 5,734 | ||||||
Natural Gas and Pipeline |
19,719 | 18,045 | ||||||
Head Office and Other |
(10,780 | ) | (9,134 | ) | ||||
|
|
|
|
|||||
109,878 | 53,360 | |||||||
|
|
|
|
34
Exhibit 99.2
新 闻 稿 Press Release |
中国石油天然气股份有限公司 | |||
PetroChina Company Limited
| ||||
中国北京东城区东直门北大街9号 | 9 Dongzhimen North Street, Dongcheng | |||
邮编:100007 | District, Beijing,100007,P.R.China | |||
电话:86-10-59986266 | TEL:86-10-59986266 | |||
传真:86-10-62099559 | FAX:86-10-62099559 |
PetroChina Increased Oil and Gas Output Steadily in First Three Quarters of 2018
Recorded Significant Net Profit Increase of 177.1%
(30 October 2018, Beijing) PetroChina Company Limited (PetroChina or the Company, HKSE: 0857; NYSE: PTR; SSE: 601857) today announced that in the first three quarters of 2018, the Company grasped the favorable opportunities offered by the rising oil prices and the increasing market demand for natural gas, adhered to its principle of steady development, focused on high-quality developments, emphasized on increasing its reserves and output of oil and gas, strengthened the balance of resources and the coordination of operations, broadened sources of income, reduced costs and improved efficiency, maintained stable production and operations, which led to a significant improvement in operating results. In the first three quarters of 2018, under the International Financial Reporting Standards, the Company achieved a revenue of RMB1,709,933 million, representing an increase of 17.3% as compared with the same period of last year. The net profit attributable to owners of the Company was RMB48,124 million, representing an increase of 177.1%. In the third quarter, PetroChina recorded a revenue of RMB601,111 million and net profit attributable to owners of the Company was RMB 21,036 million, representing an increase of 24.8% and 348.5% respectively as compared with the same period of last year.
1
Improvements in results of all business segments, exploration and production segment maintained its dominant position in profit contribution. In the first three quarters of 2018, the average realised price for crude oil of the Company was US$67.93 per barrel, representing an increase of 39.3% as compared with the same period of last year. The average realised price for natural gas was US$5.72 per thousand cubic feet, representing an increase of 13% as compared with the same period of last year. The exploration and production segment achieved a profit from operations of RMB57,884 million, representing an increase of 427% as compared with the same period of last year, maintaining its dominant position in profit contribution. The Company adhered to the principles of market orientation, continued to optimise its operation, adjust structure and expend markets. The refining and chemicals segment, marketing segment, natural gas and pipeline segment recorded profits from operations of RMB36,631 million, RMB6,424 million and RMB19,719 million respectively, each representing an increase of 32.1%, 12% and 9.3% as compared with the same period of last year.
Steady increase in oil and gas output, continuous improvement in products structure. The Company endeavored to implement its resources strategy and consolidated its resource base, in the first three quarters of 2018, the crude oil output of the Company amounted to 663.3 million barrels, representing an increase of 0.5% as compared with the same period in 2017. The marketable natural gas output of the Company amounted to 2,661.6 billion cubic feet, representing an increase of 4.8% as compared with the same period of last year. The oil and gas equivalent output was 1,107 million barrels, representing an increase of 2.2% as compared with the same period in 2017. The Company pushed forward the internationalization strategy in a steady manner. Overseas projects such as the offshore oil field projects in Abu Dhabi and the LNG Project in Canada made steady progress. The overseas oil and gas equivalent output increased by 7.8% as compared with the same period of last year. In the first three quarters, the Company processed 825.6 million barrels of crude oil, representing an increase of 10.9% as compared with the same period of last year. The Company produced 77.15 million tons of gasoline, diesel and kerosene, representing an increase of 14.1% as compared with the same period of last year. The diesel to gasoline ratio of its production lowered to 1.21 this year from 1.31 in the same period last year. Output of commercialized petrochemical products remained stable.
2
Adhered to a low-cost strategy and achieved significant results in lowering costs and boosting efficiency. In the first three quarters of 2018, oil and gas lifting cost was USD11.47 per barrel, down 3% as compared with the same period of last year, excluding the foreign exchange impact. refinery unit cash processing cost was RMB160.38 per ton, down 2.1% as compared with the same period of last year. Return on net assets rose by 2.5 percentage points to 4% as compared with the same period of last year.
Future Outlook. It is expected that the global oil market will be tightly balanced. International oil prices will continue to fluctuate. PetroChina will seize opportunities, deepen reform and drive innovation, promote high-quality development and increase the value of its oil and gas business chains. The Companys profit in 2018 is expected to increase substantially as compared with the same period of last year.
About PetroChina
PetroChina Company Limited is Chinas largest oil and gas producer and distributor, playing a dominant role in the oil and gas industry in China. It is not only one of the companies with the biggest sales revenue in China, but also one of the largest oil companies in the world. The American Depositary Shares (ADS) and H shares of PetroChina were listed on the New York Stock Exchange on April 6, 2000 (stock code: PTR) and the Stock Exchange of Hong Kong Limited on April 7, 2000 (stock code: 857) respectively. It was listed on Shanghai Stock Exchange on November 5, 2007 (stock code: 601857).
###
3
Additional information on PetroChina is available at the Companys website: http://www.petrochina.com.cn
Issued by PetroChina Company Limited
For further information, please contact:
PetroChina Company Limited
PR Agency (Overseas media):
Hill+Knowlton Strategies | Fax: (852) 2576 1990 | |
Renee Chen | Tel: (852) 2894 6228 | |
E-mail: renee.chen@hkstrategies.com |
PR Agency (Domestic media):
EverBloom Investment Consulting Lt. Co. | Fax: (8610) 8562 3181 | |
Liu Ping | Tel: (8610) 5166 3828 | |
E-mail: ping.liu@everbloom.com.cn |
4