Apr 30, 2021 (China Knowledge) - PetroChina (0857), China's largest oil group by assets, said after trading hours yesterday that it will establish an investment company with its parent China National Petroleum Corp (CNPC) and its subsidiary CNPC Capital (000617) to help fuel growth in new sources of energy.
PetroChina becomes the latest of China’s big three state oil companies to unveil plans in line with President Xi Jinping's target of achieving carbon neutrality by 2060.
PetroChina said in a statement that the establishment the investment company would allow it to gain access to strategic emerging industries which would help PetroChina foster an innovative and low-carbon strategy. The new company will also aim to develop new technologies and business scenarios.
The new company, with the proposed name of CNPC Kunlun Capital, will have registered capital of RMB 10 bln, and its head office will be located in either Shanghai or Hainan. CNPC will hold 51% of the new venture, with PetroChina holding 29% and CNPC Capital the remaining 20%. The cash infusions are expected to be completed over the next three years.
The latest cashflow statements by PetroChina and CNPC Capital released yesterday show that both parties are cash rich, sitting on RMB 111.79 bln and RMB 104.35 bln, respectively, of cash and cash equivalent at the end of March.
Dai Houliang, who is chairman of both CNPC and PetroChina, said that the company's energy transformation strategy will center on a gradual increase in natural gas, while developing other sources such as wind, solar and geothermal. PetroChina aims to reach peak carbon emissions in 2025 and reach near zero carbon emissions by 2050, ahead of the targets set by Xi.
PetroChina announced late on Thursday that its revenue grew 8.4% to RMB 551.92 bln while its bottom line saw a net profit of RMB 27.72 bln from a net loss of RMB 16.23 bln a year earlier.
Both PetroChina and CNPC Capital yesterday said that the plan to establish the new fund is not finalized despite details being publicly released, and that no legally binding agreement has been signed.
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