PetroChina targets ‘new normal’ amid market challenges

Beijing - PetroChina Co Ltd. achieved “sound operating results in 2014” amid slow growth of demand in the oil and gas market, the company has announced.

Net profit for the year ended 31 Dec 2014 fell 17.3 percent to RMB107,172 million (€15,640 million) on sales 1.1 percent higher than the previous year at RMB2,282,962 million, said a 26 March result statement.

Markets were impacted by sluggish global economic recovery and in particular the plunge in global oil prices since the second half of 2014. The company also reported continuous declines in domestic refined products prices among other negative factors.

PetroChina said it addressed these challenges in 2014 “by actively responding to the ‘new normal’ and adhering to its guidelines of quality, profitability and sustainable development.”

This involved a strategic shift from scale-based development to one focused more on quality and profitability. Other reform initiatives included performance-based compensation scheme to achieve growth in production, sales and profitability.