The mainland's thirst for energy and the soaring oil prices have lifted PetroChina's net profit to a record level since its first public offering in 2000.

The net profit of the Hong Kong- and New York-listed company surged by 47.9 percent, to 102.9 billion yuan (US$12.4 billion), last year. The profit of China's top oil producer is also the best by any Hong Kong-listed company for 2004, surpassing HSBC's remarkable HK$92.8 billion (US$11.9 billion).

PetroChina's operating profit jumped 47.8 percent, to 146.5 billion yuan (US$17.65 billion), compared with 2003. Its 2004 turnover increased to 388.6 billion (US$46.8 billion), up 27.9 percent from 2003, and the full year dividend payout amounted to 0.263 yuan (US$0.03) a share, representing a ratio of about 45 percent in line with that of 2003.

The company surpassed Goldman Sach's profit growth projection of 42 percent, or 98.8 billion yuan (US$12 billion).

On the company's development, PetroChina Chairman Chen Geng said that with an eye to foreign assets, the group would buy overseas assets worth billions of dollars from its parent body, China National Petroleum Corporation (CNPC).

The year "2004 was an oil price story," said Agnes Deng, fund manager at Standard Life Investments in Hong Kong. "In 2005, investors will focus on PetroChina's potential acquisitions, in addition to the oil price trend."

Apart form acquiring overseas assets, Chen said, the group will accelerate the development of its liquefied natural gas (LNG) business to boost its natural gas wing.

"The group had about 11.304 billion yuan (US$1.36 billion) cash and cash equivalents in hand. Most of the retained earnings from net profit will be used to fund the development projects", said the company's chief financial officer, Wang Guo-liang.

Breaking down the capital to be spent on each segment of the group in 2005, Wang said the total capital expenditure would increase by 2.3 percent, to 97.5 billion yuan (US$11.7 billion). Out of this 62.7 percent will be allocated for the exploration and production wing, 15 percent for refinery and marketing, 12.7 percent for natural gas and pipelines and 8.5 percent for chemicals and marketing, and 1 percent for other projects.

The group signed letters of intent with the provincial governments of Jiangsu and Liaoning last year to speed up the development of its LNG business.

The company said its oil and gas output reached a record 917.9 million barrels in 2004, a 3.1 percent increase, compared with 2003, while its average crude selling price in 2004 rose 24.6 percent, to US$33.88 a barrel.

(China Daily March 17, 2005)