PetroChina 2016 Profit Drops 78%

PetroChina March 30 reported net profit of yuan 7.86bn ($1.14bn) for the year ended December 31, 2016, down 78% on year on sustained low oil and gas prices. Revenue for the year was yuan 1.62 trillion.

In 2016, crude oil output from the company’s domestic operations was 763.8mn barrels, representing a decrease of 5.3% compared with the previous year. Domestic marketable natural gas output was 3,008.3bn ft³, representing an increase of 3.6% compared with the previous year. Oil and gas equivalent output reached 1.27bn barrels, down 1.9% on the previous year. Oil and gas equivalent output from overseas operations reached 201.3bn barrels, representing a decrease of 1.1% compared with the previous year, and accounted for 13.7% of the company’s total oil and gas equivalent output.

Outlook for 2017

This year PetroChina expects international oil prices to rebound, albeit with uncertainties. It said that the oil and gas market situation is undergoing profound changes, with major strategies such as the One Belt and One Road initiative and reforms to the energy pricing system and to the national oil and natural gas system accelerating growth drivers.

Shardul Sharma