New | PetroChina annual profit slips 67 per cent on weaker oil prices

PetroChina, the nation’s largest oil and gas producer, unveiled plans to cut output, further restructure its gas pipeline assets and shut unprofitable fields as it unveiled its worst profit result in 16 years.

Pummelled by sharply lower oil prices, net profit plummeted 66.7 per cent to 35.65 billion yuan (HK$42.8 billion) last year, the lowest since its Hong Kong and New York stock market listing in 2000 when it had a profit of 55 billion yuan. The result was in line with its own earlier projection of 32.16 billion yuan to 37.52 billion yuan announced late January. The annual result was helped by 22.8 billion yuan of gains from the restructuring of its pipeline assets.

Net profit for the fourth-quarter came in at 5 billion yuan, compare to 11.3 billion yuan in the same period a year earlier.

“My judgement is that it is completely possible for the oil price to average above US$40 a barrel this year and for it to reach as high as US$50, but it would be difficult to average at US$50,” chairman Wang Yilin told reporters.

Oil prices may gradually rebound to US$60 to US$80 a barrel by 2020, but are likely to be capped below US$100 per barrel, he added.