China National Petroleum Corporation recently announced its operating performance for the first half of 2004. In the first half of the year, China National Petroleum Corporation achieved its best performance in the same period since its listing. In the six months, it achieved sales revenue of 179.55 billion yuan, a year-on-year increase of 21.4%, and a total net profit of 45.29 billion yuan, a year-on-year increase of 17 .3%. The four business segments of the company continued to achieve full profitability. Among them, the exploration and production business remained the pillar of the company's earnings, and the profitability of the refining and sales business increased significantly. In the first half of the year, CNPC seized the favorable opportunity of high oil price operation and strong market demand for petroleum and petrochemical products to optimize production organization, strengthen business management, and achieve rapid growth in operating performance. In the first half of the year, the company’s exploration and production business continued to maintain a good momentum of development, achieving an operating profit of RMB52.7 billion, an increase of 4.8% year-on-year. During the period, the total production volume of oil and gas produced was 456 million barrels of oil equivalent, which was a year-on-year increase of 2.7%; the production of saleable natural gas was 410.3 billion cubic feet, a year-on-year increase of 17.4%. During the period, a total of 366 million barrels of crude oil were sold and 381 billion cubic feet of natural gas were sold. The company's refining and sales operations further optimized the allocation of resources and optimised production operations. In the first half of the year, operating profits reached 8.887 billion yuan, an increase of 192.7% year-on-year. During the period, a total of 347 million barrels of crude oil were processed, representing a year-on-year growth of 16.9%. In the first half of the year, 33.18 million tons of refined oil was sold. 1,446 new gas stations were added, and the total number of gas stations reached 16,677. In addition, the company’s main products in the chemical and sales business also achieved a significant increase in sales and sales in the first half of the year, achieving a total operating profit of 1.953 billion yuan, an increase of 201.4% year-on-year. At the same time, the key expansion and technological transformation projects of the chemical business were carried out in an orderly manner, and several projects such as Daqing Petrochemical’s 600,000-ton/year ethylene expansion project have been completed and put into production. In the first half of the year, the company's natural gas and pipeline business realized operating profits of 1.233 billion yuan. During the period, the natural gas sales business developed rapidly, the development of the natural gas market further increased, and the gas supply structure was continuously optimized. In the first half of the year, a total of 321.4 billion cubic feet of natural gas was sold, a year-on-year increase of 14.6%. The West-East Gas Pipeline Project has signed a "pay-as-you-go" contract with 27 downstream users, and the contract uses 8 billion cubic meters of gas. In the overall favourable international and domestic situation and market environment in the second half of the year, PetroChina stated that the company will continue to accelerate the development of its main business, give full play to its advantages in resources, consolidate its dominant position in the upstream, drive the overall coordinated development of all businesses, and vigorously promote institutional and mechanism innovation and standardized management. To promote the sustainable, effective and rapid development of the company.

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