Insight
PetroChina’s gas business profits from pipeline assets sale, but challenges remain
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
On 25 March, PetroChina released its full-year financial results for 2020. Its natural gas and pipeline business segment generated RMB72.4 billion (US$10.5 billion) of operating profit in 2020, up 177% from 2019. The huge increase was thanks to the one-off profit realisations associated with its transfer of pipeline assets to PipeChina. However, the underlying performance of the gas business remains fragile. Profits on sales of domestic gas and city gas business both plunged. Sales of imported gas continued to bleed. Looking ahead, natural gas will remain one of PetroChina’s priorities in its shift to lower carbon emissions. But increasing its gas business profits will be challenging. Although Q1 2021 results showed 63% year-on-year growth of operating profits in its gas business, the profitability is not sustainable and expected to shrink in the coming quarters. The company is changing its gas sales pricing methods again in 2021, which may provide some albeit limited relief.
Table of contents
-
Highlights
- Domestic production volume increased, but profits were down
- Losses on gas imports were narrowed as a result of oil price crash
- Pipeline restructuring led to one-off profit surge, but the leading cash-generative business is gone
- Natural gas will be a priority as the company joins China’s long-term climate ambitions
- Near-term task remains to improve the viability of its gas business
Tables and charts
This report includes the following images and tables:
- Operating profit of natural gas and pipeline business
- Unit loss of imported gas
- Delivered costs to Shenyang, northeast China in 2020
- PetroChina’s low-carbon transition path
What's included
This report contains:
Other reports you may be interested in
Asset Report
Sichuan Basin (PetroChina)
The Sichuan Basin is one of PetroChina's three large gas-producing regions in its domestic portfolio.
$3,720
Asset Report
Tarim Basin (Remaining PetroChina)
The Tarim Basin, PetroChina's third largest gas-producing region in its domestic portfolio, holds several large gas fields.
$3,720
Country Report
Brazil upstream summary slides
To complement our more detailed Brazil upstream summary we provide a slide-pack of the key issues in country.
$5,700
