Ladies and gentlemen, good afternoon. I'm PetroChina CFO and Board Secretary, Chai Shouping. I would like to welcome you to our 2021 annual results announcement. First, allow me to introduce the board members and top management present today. Chairman, Mr. Dai Houliang. Executive Director and Senior Vice President, Mr. Ren Lixin. Vice President, Mr. Tian Jinghui. Vice President and Chief Engineer, Mr. Yang Jigang. Chief HSE Supervisor, Mr. Zhang Minglu. The presentation today includes four parts. First, review and analysis of 2021 financial performance. Next, overview of operation performance. Then remarks from the chairman, followed by a Q&A session. Now I'll walk you through our financial performance of 2021.
Last year, with rising oil prices, steady recovery of Chinese economy, and booming demand for oil and gas, we followed through on high-quality development requirements and made coordinated progress on business development, including a low-carbon transition, reform and innovation, quality and efficiency, HSE and COVID response. Oil and gas industry chain maintains stable operation. Operation performance reached seven-year high. Realized oil price averaged $65.58 per barrel, up 62.6% year-on-year, or up 7.6% versus 2019, with a two-year average growth of 3.7%. Revenue, CNY 2.6 trillion, up 35.2% year-on-year, marking a new record high. Operating profit, CNY 151.15 billion, up 112.2%.
Net profit attributable to the parent, CNY 92.17 billion, up 385% year-on-year, up 101.8% versus 2019, with a two-year average growth of 42%. Earnings per share, 0.50 CNY. We remain committed to prudent, targeted, and profitable investment. Based on oil price changes, operation performance and cash flow, we adjusted and optimized investment planning structure, further enhanced investment management to improve returns. 2021 CapEx totaled CNY 251.18 billion, up 1.9% year-on-year. The overall scale is reasonable and well controlled. As the foundation of our development, E&P business remains a CapEx priority, which totaled CNY 178.26 billion, accounting for over 70%. We steadily increased input into green and low-carbon transition. CapEx on new energies, new materials and new business totaled CNY 3 billion.
In 2022, we plan to invest another CNY 10 billion. Last year, we continued to improve quality and efficiency, enhanced cost control and achieved notable results. Growth of major costs was far smaller than that of income. Lifting cost in China, $13.06 per barrel, around flat year-on-year, adjusted for RMB appreciation. Cash processing cost, CNY 166.65 per ton. Despite higher costs of fuels and power, the cost was well controlled, up only 1.7% year-on-year. We worked on funds management. Financing cost, CNY 16.22 billion, down 13.7% year-on-year. We made rational investment decisions, enhanced asset management for the optimized asset liability structure. Financial profile remains sound. By the end of December 31st, 2021, total assets, CNY 2.5 trillion, up 0.6%.
Interest-bearing debt, CNY 340.45 billion, down 7.7%. WACC of interest-bearing debt, 2.65%, down 0.22 percentage points, the lowest since our founding. Debt-to-asset ratio, 43.7%, down 1.4 percentage points. Debt-to-capital ratio, 19.5%, down 1.8 percentage points versus end of last year, the lowest since 2011. We value cash flow management and saw large rise in free cash flow. Operating cash flow, CNY 341.47 billion, up CNY 22.89 billion year-on-year, or 7.2%. Free cash flow, CNY 79.85 billion, up 13.8%, mainly due to increased operating cash flow and stronger CapEx discipline.
We'll further tighten fund management to ensure appropriate and ample cash flow. Operating profit of E&P, CNY 68.45 billion, up CNY 45.36 billion. Price changes of oil and gas products add to the profit by CNY 156.27 billion. Changes in sales up CNY 8.46 billion. More sales of natural gas at CNY 7.43 billion. Lower sales of crude cut CNY 15.89 billion, mainly due to sales declines overseas. OPEX up by CNY 102.45 billion, including purchase services and other costs up by CNY 42 billion, mainly due to higher costs of crude imports. DD&A grew by CNY 24.48 billion. Tax, except income tax, went up by CNY 13.17 billion, including CNY 4.48 billion from windfall tax.
Operating profit of refining chemicals, CNY 49.74 billion, up CNY 51.57 billion. Operating profit from refining, CNY 37.73 billion, up CNY 50.53 billion. Higher refining margin adds to the profit by CNY 53.45 billion, where crude run at 1.54 billion. Higher OPEX cut profit by CNY 4.46 billion. For chemicals business, operating profit was CNY 12.01 billion, up CNY 1.04 billion year-on-year. Price changes add to the profit by CNY 53.64 billion, mainly due to upward chemicals market in China and PetroChina optimized product mix, and boosted the development, production, and marketing of high-end and high value-added chemicals and new materials. Changes in sales at CNY 2.09 billion.
Higher OPEX cut the profit by CNY 54.69 billion, mainly due to increased purchase service and other costs. For marketing business, operating profit CNY 13.28 billion, up CNY 16.18 billion. Operating profit of marketing business in China, CNY 10.27 billion, up CNY 15.87 billion. CNY 15 billion from higher margins, CNY 2.17 billion from increased sales, yet higher OPEX cut CNY 1.3 billion. International trade saw an operating profit of CNY 8.01 billion, up CNY 310 million year on year. Operating profit of natural gas and pipeline business, CNY 43.97 billion, down CNY 28.44 billion, which is a rather good growth adjusted for pipeline restructuring.
Natural gas and pipeline business saw a profit of CNY 22.21 billion, down CNY 9.38 billion, mainly due to lower profits from transmission. Natural gas marketing price in China averaged CNY 1,809.04 per KCM, up 6.5%. Net loss from gas imports, CNY 7.21 billion, down CNY 6.95 billion year-on-year. City gas business saw a profit of CNY 12.6 billion, up CNY 5.45 billion. Pipeline restructuring and other cut CNY 24.51 billion. Considering our operation and financial performance and cash flow to reward our shareholders, the board recommends a year-end dividend of $0.09622 per share, CNY 17.61 billion in total.
Annual dividends add up to $0.22662 per share, totaling CNY 41.48 billion, reaching a new high since 2015. Payout ratio stands at 45%. Now let's welcome Executive Director and SVP, Mr. Ren Lixin, to review the company's operational performance. Now, I'll brief you on our operational performance of 2021. Last year, world economy remains uneven, but due to COVID-19, different economies were on divergent path. Crude demand rebounds rapidly and macroeconomy in China recovers so does refined products demand, and gas demand is still growing fast. We remain committed to strategies of innovation, resource, market, internationalization and going low carbon. We made efforts to deliver on carbon peak and neutrality, promoted business development, reform and innovation, quality and efficiency, ESG efforts, and so on. Oil and gas industry maintained stable operation. New energy and new business took a head start.
With lean management, operation performance improved a lot. All four business segments registered positive profit. Domestic EMP gained super results. In 2021, we went all out on adding reserve and production. Exploration made five strategic breakthroughs and 15 major discoveries, totaling 33 achievements. In those four basins such as Ordos, Tarim, Sichuan, and Qinghai, major breakthroughs were made in new zones, areas and layers. In some areas in Hetao Basin, Tarim, Junggar, Ordos, Sichuan, and Paleo-uplift in eastern Sichuan, self-economic and favorable rewards were identified. Net added oil and gas reserve in China marked a new high with SEC true RR reaching 221%, highest since our listing. Development went deeper. We focused on legacy fields, stable production and cost-effective capacity building in new areas. Gas is taking ever larger share in our production mix.
Major areas with poor production ramp up, namely Chongqing, Tarim, Xinjiang and Southwest, saw an increase of 3.4, 2.1, 5.8 and 12.1% respectively. Overseas cooperation saw much success. Last year, in Niger, risk exploration in Birni N'Kon block found new oil formation. In Chad, seven exploration wells in the new section of Dosa Zervé all proved successful. In Kazakhstan, five exploration wells to the east of the Kashagan field made oil and gas discovery. Development projects were well underway, pushing for improved portfolio overseas. In 2021, oil and gas totaled 1.625 billion BOE in production. Domestic production 1.475 billion BOE, up 3.4%. Crude production in China, 753 million bbl. Market for natural gas in China up 5.7%.
In China, gas is taking ever larger share of the total production. Hydrocarbon mix further improved. R&C transformation and upgrades gain more depth. Refining focused on cutting fuels and adding chemicals. Yield of refined products went down by 1.6 percentage point. Gasoline-diesel ratio down to 0.98. Refined product production totaled 109 million tons. New projects like Guangdong Integrated Plant advanced at quicker pace. Chemical plants maintained high run rate and increased the production of high value-added chemicals. Chemical commodity up 6.7%. Ethylene, synthetic resin, synthetic rubber up by 5.8%, 6%, and 4.3% respectively. We work on new materials, enhanced R&D and output of new materials soared significantly. We went all out to explore chemical markets and continue to transform from supplier to trader.
With proprietary technology, Chongqing and Tarim large-scale ethane to ethylene plants were brought online. These two national demonstration projects are the new profit drivers in our chemical business. Marketing of refined products grew in both volume and profit. Sales of refined products up 1.3%. Sales within China up 6.2%. By the end of 2021, we operate a total of 22,800 service stations. Non-oil business reached 4.58 in terms of margin, a historic high. Trade on domestic and international resources and market, we achieved 426 million tons in trade volume, up 7.0%.
Gas marketing expanded in volume and efficiency. The gas sales increased by 10.1%, including 194 BCM, up 12.7%. Key projects came online as scheduled, including Tangshan LNG Terminal and Jiangsu LNG Terminal phase three, and some branch pipelines. Green low-carbon transition got a head start, aiming at carbon peak at around 2025 and near zero emissions at around 2050. We acted on the green and low-carbon development strategy and geared up green transition. We have developed new energy development plan to promote the integrated growth of geothermal, wind, solar and gas power. Pushed for hydrogen agenda across the value chain. Pushed the CCUS deployments and transitioning us into an integrated energy company with oil, gas, geothermal, power and hydrogen. Our ESG made notable progress.
We have set up an ESG management system where the board is in charge, specialized committee oversees, departments and branches implement. HSE committee under the board was renamed Sustainability Committee, and further enhance the management on the company's ESG efforts. PetroChina also issued its ESG report today, updating progress in our governance, environmental protection and CSR, and I refer you to the ESG reports for more details. Solid steps were taken in new energy drive. New energies business is a new driver of our green and low-carbon transition. We have moved faster to build six new energy bases in Beijing, Tianjin, Hebei, Jilin, Daqing, Qinghai, Yunmeng and Xinjiang. 39 new energy projects came online in 2021, adding 3.5 million TCE capacity. Our new energy businesses got off to a quick start.
Yunmeng 200 MW PV projects came online. The geothermal heating based in Beijing, Tianjin, Hebei, and many wind, solar power generation and CCUS projects made solid progress. Many hydrogen refueling, battery swap and PV stations, and the first refueling robots came online. We delivered on action plan for carbon peak and neutrality to energy saving as the first fuel, and strive to reduce energy emissions. We're aiming for 6.5 million tons of CO2 injection per year by 2025, if economically viable. Fruitful results in science and innovation. In 2021, major projects were initiated and R&D breakthroughs made on core technologies. We got three State Science Progress Awards and set two international standards. We innovated geological theories and E&P technologies in deep and ultra-deep layers. Technologies were applied in ethane-to-ethylene plants and to produce high-end synthetic rubber.
We launched several pilot projects on digital transformation and smart development. We set up research institutes in Shenzhen and Shanghai, strive to build R&D and innovation center for new energies and materials, and gained a competitive edge in energy and chemical innovation. This slide shows operation performance in 2021, and our targets for 2022 for your reference. Ladies and gentlemen, in 2022, we'll follow the deployments of the board and start to build a world-class international energy company. We'll take initiative and work hard to deliver excellent performance to reward our shareholders and give back to the society. Thank you. Now, let's give the floor to Chairman Dai Houliang. Dear investors and friends from the media, ladies and gentlemen, good afternoon. I'm glad to virtually join you once again.
On behalf of the board, top management, and entire staff of PetroChina, let me begin by extending sincere appreciation for your long-term support. My colleagues just briefed you on our financial and operational performance in 2021. The past year has been quite extraordinary for us in mapping our future and securing outstanding results in pursuing high-quality growth. Facing a pandemic and changes both unseen in a century, we worked together to forge ahead. We took pioneer reactions and made historical breakthroughs and landmark results, with many indicators reaching record high. Oil and gas value chains remain stable and efficient. Green and low-carbon transition took a head start. Science and innovation bore fruitful results. Quality and efficiency saw material progress. HSE and COVID control made steady progress. We fulfilled CSR and further modernized governance system and capabilities.
Our works on every front took a fresh look in the first year of the 14th Five-Year Plan period. Right now, we still see a raging pandemic and major changes in international environment, especially the far-reaching impact from Russia-Ukraine conflict. There are more uncertainties in global recovery and profound adjustments in energy landscape, with oil prices remain high and in wild swings. It has been a prevailing trend to find alternative energies, cut emissions, and tackle climate change as digital and smart growth reshape the industry. All of this call for our continued efforts to further boost corporate value. In the meanwhile, we are also aware that PetroChina remain in an important period of strategic opportunity with favorable conditions for growth. Chinese economy will sustain long-term growth with strong resilience and vitality.
China continues to deepen reform and opening up, expand domestic demands, improve business climate, and support real economy, creating an enabling environment for the company's growth. With solid base and comparable strength in oil and gas resources, management, technology, and talents, we have every confidence for our future growth. The year 2022 is important for us to act on the 14th Five-Year Plan and pursue high-quality growth. Committed to five strategies of innovation, resources, market, internationalization, green and low carbon, we will take full strategic steps. We will focus on core businesses, including new energies, enhance governance, reform and innovation, improve quality and efficiency, pursue green and digital transition, and prevent risks. We strive to meet all targets and deliver good performance, opening up new prospects for high-quality growth. We will push for new developments in E&P.
We will enhance domestic E&P, stabilize production, and boost profitability in mature oil fields and blocks, and promote sizable and cost-effective capacity building in new ones, ensure stable crude oil outputs, and fast-growing gas. We'll optimize overseas portfolio as well as regional development priorities, further improving our capability in accessing quality resources and development quality. We'll lift overall profit-making capacity of R&C. We'll coordinate production targets and sales, and move to transition and upgrade R&C business. We'll organize key projects such as Guangdong Petrochemical Project. More efforts will be made in new material R&D and production, and more efficient refining products and lucrative chemicals will be produced. We will better coordinate supply, production and sales. We'll coordinate resources and market, polish marketing strategies, boosting marketing and value creation capacity for refined products and chemicals.
For international trading, capacity building in services, marketing and transactions will be enhanced to lift the value of industry chain and risk resilience. We'll boost gas marketing. We'll plan all resources and costs, optimize market layouts, client structure, sales flow and strategies. We'll go all out to develop lucrative markets and carry out precision marketing, further expanding profit-making capabilities and ensure stable supply to the market. Both the green and low-carbon transition, clean production will be enhanced with tighter control for energy consumption intensity and amount. We'll also manage VOCs and methane emissions to achieve energy conservation as well as pollution and emission reduction. Integrated new energy spaces on wind, solar, gas and storage will be built and geothermal projects spread out in Beijing, Tianjin, Hebei and Shandong Province in effort to supply clean and low-carbon energies. We'll boost science, technology and innovation.
Research on key technologies will be enhanced and major research projects in energy and chemicals will be initiated, paving the way for our core businesses to sustain high quality growth, improve quality and efficiency, and gain a competitive edge and help the company to transition itself. We'll enhance quality and efficiency to create value. Highlighting lean management, we'll make continued efforts in financial performance, market supply, management and operation, innovation, and strive for steady increase in profit and innovation and efficiency and quality development. We will continue to guard against and defuse risks. Mindful of the worst-case scenario, we will identify and manage risks, improve QHSE and COVID control, operate in compliance with laws and regulations, and ensure sound production, operation, and corporate development. We will promote the common development of the company and society. We respect the employees' principal role and count on them to develop.
We will fulfill CSR and support public service, engage in global energy governance, and work to build a community with shared interests for energy cooperation. ESG efforts will be further enhanced to deliver win-win for both the company and all shareholders. Ladies and gentlemen, dear friends, in 2022, PetroChina will follow the pursuit of green development and a reliable energy supply to power customers' growth and people's happy life. We will seize the momentum and strive to reward all investors and shareholders with better performance and achieve the sustainable development of the company, the environment, the society, and all stakeholders together. We sincerely hope to have your continued support and I look forward to joining hands with you to scale new heights. Thank you all. Thank you, Chairman Dai. That's all for PetroChina's annual results announcement part. Now we will have a Q&A session with consecutive interpreting available.
As usual, to give more people the chance to ask, please raise no more than two questions and inform us the institution you represent. Now the floor is open for questions.
Ladies and gentlemen, if you would like to ask any questions, please press star one on the telephone keypad. Press star followed by one. Thank you. The first question is Peng Qiang from 21st Century Business Herald. Please go ahead.
Uh,
我的问题有两个。第一个是近日有记者就三大油购买俄罗斯资产问题在外交部例行记者会上有提问，我想问一下管理层怎么看俄乌事件对国际油气市场，还有中俄油气合作的影响？第二个问题是中石油把绿色低碳纳入公司的发展战略。我注意到中国石油2021年通过稳油增气实现减排二氧化碳2.6亿吨。这个数据很亮眼。想问一下公司在绿色低碳转型方面还有哪些新的进展可以介绍？谢谢。
Congratulations on the stellar results of PetroChina in the year 2021. I've got two questions. First question is concerning a press conference held by the Ministry of Foreign Affairs, and some journalists asked about the three oil companies in China potential purchasing of Russian assets. I'm wondering about what is the impact of the Russia and Ukraine situation on the international oil and gas market, and also on PetroChina's international cooperation. The second question is concerning your green and low carbon transition. In the year 2021, through arduous efforts to stabilize crude production and increase natural gas production, PetroChina has managed to cut CO2 emissions by 260 million tons, which is remarkable. Could you please give us more color on the new progress in your green and low carbon transition strategies?
这两个问题请戴厚良董事长来回答。
I invite our Chairman, Mr. Dai Houliang, to take these two questions.
谢谢我们21世纪报的媒体朋友的提问，你这两个题目挺大，我只能做一些简要的回答。
I thank you, my friend from the 21st Century Business Herald, for your questions. These are two quite big questions and I can only give you very brief answers.
俄乌的事件对全球的影响是深远的，特别是对国际的能源市场产生了重大影响。在多方面的因素的作用之下，目前油价已经上涨了50%到70%，目前仍在高位宽幅震荡。
The Russia and Ukraine situation has profound impact globally and especially on the international energy market. Impacted by multiple factors, the international crude price went up by 50%-70%, and currently it is still fluctuating at a very high level.
全球的能源，特别是天然气和石油供应的风险在加大。公司一直在密切关注能源市场的变化。作为公众公司，我们秉持ESG的理念，积极履行环境和社会责任义务，采取多方举措来全力以赴保证天然气和原油市场的供给。目前供应总体正常，但是供应的成本大幅上升。
The global energy, especially natural gas and crude oil, is now facing risks in supply. PetroChina has been following closely the changes in the energy market, and as a public company, will bear ESG in mind actively fulfill our social and environmental responsibilities. We have taken several measures to our utmost to ensure the supply in the natural gas and crude oil market. Currently speaking, the supply is right on track, but the cost inflation is also significant.
我们主要采取了以下三方面的措施来保证供应。首先我们是加大了国内的勘探开发力度，努力增加国内天然气和原油的有效供给，包括加大投资、优化运行方案、增储上产等。
We mainly take the following three aspects of measures to guarantee the supply. First, we are working on the international exploration and production to try to increase the effective supply of natural gas and crude oil in the Chinese market, including increasing our CapEx, optimizing operation plans, increasing reserve and production.
第二方面的措施主要是强化贸易保供。多年以来，中国石油与各大天然气和原油的生产商保持了良好的合作关系，有一大批的长约合同在执行当中，目前总体正常。
Second, we are intensifying trade activities. For many years, PetroChina has maintained sound partnership with many natural gas and crude oil producers. There's multiple long term contracts being executed right now. Currently speaking, our business is normal.
但是我们立足长远和绿色低碳的转型，我们进一步加大了风光、地热和氢能等新能源的投资。今年在新能源领域的投资将比去年要增长两倍以上。希望我们能够通过能源总量的有效供给和增量的增加来满足经济社会发展对能源的需求。
Third, we are focusing more on long term and green and low carbon transition. We intensified our investment in new energy sector, including wind power, solar power, geothermal, hydrogen, etc. Our new energy investment in this year is expected to grow by more than two times, and we wish to increase the effective supply of our total energies in order to ensure to meet the energy demand for our social and economic development.
现在回答您的第二个问题。绿色低碳是公司的五大发展战略之一。绿色低碳的转型发展，其实适应世界能源转型的需要，也是公司高质量可持续发展的本质要求。
I'll take your second question. The green and low carbon is one of our five development strategies. Green and low carbon transition and development is a requirement for PetroChina to adapt to the world's energy transition, but also an intrinsic requirement for us to achieve high quality and sustainable development.
公司积极响应中国政府的双碳目标，锚定了力争到2025年左右实现碳达峰、2050年左右实现净零排放的目标承诺，深化细化绿色低碳转型的发展战略的实施。公司制定了碳达峰、碳中和的时间表和路线图，按照清洁替代、战略代替、绿色转型三步走的总体部署，推进实施了绿色产业布局，打造化石能源与新能源融合发展的低碳生态圈，加快构建多元互补的格局，推动中国石油向油气、热电、氢综合性能源公司来进行转型。
PetroChina has actively responded to the government's requirement to achieve carbon neutral and carbon peak targets, and we aim to achieve peak carbon by around 2025 and near zero emissions by around 2050. We are working to intensify and deepen the implementation of our green and low carbon development strategies. We have set the timeline and roadmap for us to achieve peak carbon, and we have launched a three step scheme of clean alternative, strategic replacement and green development. We are working on the planning of green industries in order to forge a low carbon energy ecosphere with integrated development of fossil fuels and new energies. We are also working on building a new situation of many different energies, reinforcing each other, and build PetroChina into an integrated energy company that provides oil, gas, heat, power and hydrogen.
2021年，我们在继续认真实施我们的十四五规划，继续加大了实施稳油增气，国内天然气的产量，在油气产量、油气当量当中的比例进一步提升到51.6%。全年国内销售天然气达到了1,946亿立方米，相当于替代了2.59亿吨的标煤，减排二氧化碳约2.6亿吨。
In the past year, we are implementing our fourteenth five-year plan and working on our initiative to stabilize oil production and increase natural gas production. Our domestic natural gas output took about 51.6% of our total oil and gas output in China. For the whole year, we sold natural gas of 194.6 BCM in China, which is equivalent to replacing 259 million tons of standard coal for a reduction of 260 million tons of CO2.
公司呢，大力推动地热、风光、气电融合等新能源的发展，促进氢能产运储用全产业链的发展。我们在过去的，刚刚过去的冬奥会当中，我们提供了高纯氢用于氢能汽车。我们用自主研发的具有自主知识产权的生产出的氯氢提供给奥运会的主火炬。
We have been working hard on the integrated development of geothermal, wind power, solar power and gas-fired power, and we are working on the full value chain development of hydrogen, including its production, transportation, storage and utilization. In this past Winter Olympic Games, PetroChina provided hydrogen for vehicles with very high purity, that's hydrogen vehicles and also green hydrogen for the main torch of the Winter Olympic Games, which has our own intellectual property rights.
我们加强CCS、CCUS和新能源的产业布局，实施了一批新能源项目，其中三十九个项目建成投产，新增新能源开发利用的能力达到了350万吨/年标煤，实现了新能源业务的快速起步。
Efforts have also been made in the planning of CCS, CCUS industry and the new energies industry. We have carried out a series of new energy projects, including 39 projects put into production, and we added the development and utilization capacity of new energies, which is equivalent to 3.5 million tons of standard coal per year. We have realized a fast start of the new energy business.
我们认识到在双碳目标实现的过程当中，化石能源，特别是天然气、原油，仍将发挥重要作用。为此，我们持续加大了国内的油气勘探开发力度，保障供给。公司将充分发挥天然气资源的优势，更加注重天然气业务的发展，实现国内天然气产量的较快增长。力争到2025年，天然气产量的占比能够提高到我们油气当量中的比例达到55%左右。
PetroChina is aware that in our efforts to achieve peak carbon and carbon neutral targets, fossil energy, especially natural gas and crude oil, will remain to be very important. We have intensified our efforts in domestic E&P to ensure supply, and we will fully harness our advantage in natural gas resources to focus on the natural gas business development. We hope we can see fairly rapid growth of natural gas production in China. Our target is to increase our natural gas percentage in our total output to 55% by 2025.
在清洁能源的开发当中，公司将充分利用油气矿权区域的以及周边地区丰富的风光热等资源，大力发展新能源业务，力争到2025年，新能源开发利用的总当量达到2,300万吨标煤，产能占比达到总能源量的7%左右，为2035年实现新能源油气三分天下，为2050年实现新能源能够达到能源总量的半壁江山，打下坚实的基础。谢谢。
In the development of clean energy, PetroChina will fully utilize our resources of wind, solar and geothermal in the areas where we have the mineral rights and its surrounding areas. We focus on new energy business, and our target is to increase the development and utilization volume of new energies, equivalent to 23.5 million tons of standard coal by 2025, or 7% of our total production capacity. New energies, oil and gas are expected to take one-third respectively in our portfolio by 2035, and new energies production capacity is estimated to increase to half our total portfolio by 2050. Thank you.
谢谢戴厚良董事长。下面请接着提问。
下一位有请瑞士信贷谢尹匡。
The next questioner is Horace Tse from Credit Suisse. Please go ahead.
我是瑞士信贷的Horace。恭喜公司取得了非常好的2021年的业绩。
谢谢。
我这边有两个问题。第一个，关于进口气的亏损，2021年的进口气亏损总体是好于预期，而且四季度的话，看到有一个环比的改善。那对于2022年，我们进口气亏损的展望会是怎么样？特别是在一个高油价的环境下，我们会采取什么策略，去把就是高成本顺价顺到下游去。这个是第一个。然后第二个问题是关于分红。2021年的分红回归到上市以来的45%的基本派息的水平。随着2022年的现金流的改善，那我们该怎么去看待今年以及后续的派息政策。谢谢。
Congratulations on your last year's excellent performance. I've got two questions. First one is concerning your imported natural gas losses, which were better than expectations in 2021, and especially in Q4, the loss even went down quarter-over-quarter. My question is, how do you look at the import gas losses in the year 2022, especially against the high oil price environment? What measures will the company take to pass through your import costs? Second question is about the company's dividends. In last year your dividend payout ratio has been returned to the basic 45% payout ratio. We will see improving cash flow in the year 2022. I'm wondering about the outlook on the dividend policy in the year 2022 and beyond.
这个问题由我来回答，我是中国石油财务总监柴守平。第一个问题就关于进口气亏损的事情。
Our CFO Chai Shouping is taking your question. First on imported natural gas loss.
2021年公司进口气大约是800亿方，亏损了72.1亿元，同比减亏66亿元。
Last year, PetroChina sold imported gas of about 80 BCM with a loss of CNY 7.21 billion, which is a reduction of CNY 6.59 billion.
亏损减少的原因主要有四个。一个是开拓直销和终端用户，开拓高端市场。
For the reduction of import gas losses, we may have four reasons. The first is our efforts in the development of high-end markets, including the direct sales and the development of end user market.
二是推进天然气价格市场化，建立天然气购销合同协商体系，加大合同、合同外资源线上投放力度，强化买卖双方自主选择。
Second, we have pressed ahead with the natural gas prices to be more market-oriented. We set up a negotiation system for the natural gas purchase and sales contracts and enhanced the trading of online resources, especially extra contract resources, and intensified the free choice of both sellers and buyers.
第三个原因是国家颁布了进口气退税政策，对2014年以前年度的长契协议气加大退税力度，这样增加退税五十亿元左右。
The third reason is the Chinese government has issued new tax refund policies for imported natural gas, and the tax refund is increased, especially for those long-term contracts signed before the year 2014, which has contributed an additional CNY 5 billion.
还有最后一个原因，就是进口气的成本，因为挂靠油价之后九个月左右，这样它的进口气的成本也是在下降的。
The last reason is the reduction of import costs, because the import gas prices is linked with crude prices and have a nine-month lag.
进口气的成本受国家的油价、汇率，还有天然气市场供需形势等多种因素的影响。那么2022年公司将根据市场供需形势，资源平衡情况，统筹安排进口气的规模。谢谢。
The import gas cost is impacted by multiple factors, including the international crude prices, foreign exchange rates, and the market situation. In the year 2022, we will arrange our import scale based on the market situation and our resource balance. Thank you.
您说的第二个问题是关于派息政策。公司自上市以来，始终保持稳定的派息政策，即按规模净利润45%进行派息。
On the dividend policy, since the company got listed, we have maintained very stable payout ratio of 45%.
近几年，特别是从2016年以来，由于油价低等原因，公司在派息45%的派息率基础上增加了特别派息。
In recent years, we have witnessed very low crude oil prices, and in those years, the company has issued special dividends on the back of the 45% payout ratio.
2021年公司的经营业绩非常优异。昨天董事会开会建议股东大会按45%的派息率进行派息。
Last year, PetroChina has seen stellar results in our operation. Yesterday, we held the board meeting, and the board suggests the general shareholder meeting to decide on a 45% payout ratio for last year.
这样全年派息每股是¥0.22元，那么末期派息是¥0.096元，全年派息总额¥415亿。
Therefore, for the annual dividend, the amount is $0.22 per share, with a total number of CNY 41.5 billion in total dividend, and the final dividend was $0.096.
正如刚才报告的那样，公司2021年的自由现金流非常充裕，整个自由现金流798.5亿元。现金流除了用于派息之外，昨天在董事会上也要求公司把剩余的现金流主要用于在三个方面上。
As you just mentioned, in 2021, our cash flow is quite abundant, and free cash flow was CNY 79.85 billion. As is decided on our board meeting yesterday, our cash flow in addition to dividend will be used in the following three areas.
一是用于绿色低碳转型，实现高质量发展。二是加大国内油气勘探开发，特别是天然气的开发，保证油气市场稳定供应。三是用于偿还部分债务，保持财务状况稳健。
The first is the cash flow will go to green and low carbon transition for high quality development of the company. Second, it will go to the domestic oil and gas exploration and development, especially the development of natural gas, to ensure stable supply in the market. Third, the money will go to managing down our leverage and to maintain a prudent financial position of PetroChina. Thank you.
请提问。
Next question please.
下一位有请香港文汇报罗洪笑。The next question is 罗洪笑 from 文汇报. Please go ahead.
The next question is Luo Hongxiao from Wen Wei Po, Please go ahead.
谢谢主持人。我是香港文汇报记者，我有两个问题向管理层提问。第一个问题呢，是我们关注的2021年呢，中石油在新能源、新材料等方面有好几项大动作，比如成立了两个研究院，加速地热项目投产，加快发展新能源等。想请管理层介绍一下公司在这个新能源新材料方面有哪些最新的布局，以及未来的发展计划是怎样的。第二个问题呢，是关于这个盈利的。很多人认为呢，去年中石油的业绩比较好，得益于油价的上涨。我们也注意到这个业绩报里头有显示到，就是与2019年相比呢，国际油价上涨了7.6%，但是中石油的利润呢，是有101%的增长。请问一下管理层，中石油支撑这个业绩大幅增长的主要原因是什么？谢谢。
My first question is about your new energies and new materials business. Last year we have seen quite great achievements in these two regards. We've seen your establishment of two research institutions and some geothermal projects were put into production. Also you have made new efforts in the new energies development. I'm wondering about your new plans for new energies and new materials in the years ahead. Second question is about the company's earnings. Last year your earnings has improved quite a lot, and some say it's because of the increasing of the crude oil prices. We can also tell from your annual report that the crude oil price went up by 7.9%, but your earnings improved by 101%. I'm wondering about the real reason behind your performance improvement.
好，您提问的第一个问题，请公司副总裁总工程师杨继刚先生回答。
I invite Mr. Yang Jigang, Vice President and Chief Engineer of the company to take your question.
关于新能源和新材料方面，现在市场上都是高度关注，也吸引的投资还是比较大的。公司是油气和炼油化工上下游一体化的公司，因此在能源和化工材料方面具有比较丰富的知识、技术、经验和市场。因此，我们在这两个方面，近期也是投入了较大的精力和资源。
I take your question for the new energies and new materials, which has attracted a lot of attention. These two areas did require a lot of investment as well. PetroChina is an integrated energy company having both the upstream, midstream and downstream of the oil and gas value chain. For the chemicals materials, we have our advantages in terms of knowledge, technology experience and our market share. We have made quite a lot of efforts in developing new energies and new materials.
我们董事长担任这个新能源新材料事业发展领导小组的组长，制定了新能源新业务的发展战略规划，也构建了业务管理的体系。
The chairman of PetroChina now chairs our leading group on the development of new energies and new materials. We have prepared a strategic development plan for the new energy business development and also organized a business management system.
如您所说，成立了深圳新能源研究院和上海新材料研究院，分别在勘探与生产分公司及其油田企业成立了新能源事业部，在炼油与化工分公司及其炼化一体化企业成立了新材料事业部。
As you mentioned, we've set up a Shenzhen New Energy Research Institute and a Shanghai New Material Research Institute. In our E&P company and its oil field companies, they all set up a new energy business division. In our refinery and chemicals company and our integrated refinery and chemicals companies in different localities in China, they set up a new materials business division.
关于在新材料方面，刚才董事长已经介绍得非常清楚了。我想补充一下，就是，公司在新能源方面，在天然气发电与可再生能源的融合方面还是比较关注，重点推动风光气储一体化的这种风电光伏项目，特别是在西部地区，积极地参与国家以沙漠、戈壁、荒漠治理为主的这些风光电项目。
Our chairman has made it quite clear about our energy transition initiatives, and it is frankly speaking PetroChina focused quite a lot on the new, the power generation of hydrogen and new energies. We are working on the integrated development of solar power, wind power and gas-fired power plants and their storages. We are working on the western part of China to participate in the government-led initiative of developing wind, solar, power spaces, which is surrounding the treatment of deserts, Gobi and Barrens.
在新材料方面，主要是强化在我们合成橡胶、功能性合成树脂方面的优势，在扩展我们在电子信息、医疗健康、风光电储能、电力交通、航空航天等领域所使用的新材料的研究和开发。
In terms of development of new materials, we are focusing on synthetic rubber and performance synthetic resin, and also the new materials used in electronic information, medicine and the storage of wind and solar power in transportation, in aviation and aerospace sectors.
因此，今后将继续落实好新业务的专项规划以及年度计划。十四五期间，我们将规模化地发展地热、风光电热、风光电气融合，加强新能源、新材料、CCS、CCUS新能源服务支持战略布局，超前储备一批关键核心技术。
In the years ahead, we will implement the plans in new energies and new businesses and also the annual plans. In the 14th Five-Year Plan period, we will try to achieve sizable development of multiple new energies, including geothermal, wind power, solar power and gas-fired power. We are working on new energies and new materials on CCS, CCUS and the new energy supporting and service sectors. We are trying to develop a series of new energy development and new materials development technologies.
重点推进六大基地的建设，建成这个新能源、新材料、新业务的组织管理、技术支撑和业务体系。
The focus is to press ahead with the development of the six bases and try to achieve the organizational management, the technological support and the industrial systems for new energy, new material and new business.
到2025年，新能源开发利用的总量达到2350万吨标煤，产能占比达到7%。新材料在化工材料中的比例达到15%以上，进一步地提升公司满足和服务市场的能力。
We expect the development and utilization volume of new energies will be equivalent to 23.5 million tons of standard coal by the year 2025, and the capacity will reach 7% of the company's total. We also expect the percentage of new materials in our total chemicals materials to be above 15% to further enhance our ability to meet the market demand.
回答完了，谢谢。
Thank you.
好，谢谢季刚副总裁，接下来这个问题由我来回答。
Thank you, Mr. Yang. I will take the second question. I'm CFO, Chai Shouping.
在2021年，公司的业绩同比大幅增长，实现归属净利润921.7亿元，增长385%。主要原因用戴厚良董事长的话来说，就是人努力，天帮忙。
In the year 2022, PetroChina's performance has improved very significantly. Our net income attributable to the parent reached CNY 92.17 billion, an increase of 385%. As stated by our chairman Dai, that is due to our efforts made by all the employees and also by grasping the good opportunities.
一是油价上行，中国经济持续稳定恢复，油气市场需求旺盛
First, we have witnessed very significant increase of crude prices and China's economy recovered steadily and the demand recovered as well. Second, we have been working on a special program to enhance the quality and efficiency of the company's development. In terms of our domestic crude oil and marketable natural gas output, the numbers went up by 1.3% and 5.7% respectively, and our domestic refined oil products sales volume, the chemicals commodity volume, and domestic natural gas sales volume went up by 6.2%, 6.7%, and 12.7% respectively. Third, efforts have been made to implement our low-cost development strategy. We have continuously strengthened cost and fee control and management, and the growth of our revenue far outweighs the growth of our costs and fees, especially our weighted average interest rate decreased by 30.7%.
Efforts made in quality and efficiency improvement have contributed earnings of CNY 10.5 billion. The four business segments of the company have all witnessed profits. Thank you. Time's running short. One final question. The last question is Zhang Naidi from Everbright Securities. Please go ahead. Since the year 2018, the company has been working actively to respond to the government's call to ensure China's energy security. The company has made quite considerable and stable in our upstream sector over the years with a lot of breakthroughs and achievements made in this sector. In the year 2021, I'm wondering about what significant discoveries have you made in your exploration activities in China? As we know, reserves is the most important core competitiveness of an oil company.
Last year, PetroChina's reserve replacement ratio amounted to 2.21, which is rarely seen in international oil companies. How do you manage to achieve that? The second question is about the oil prices. In this year, 2022, the crude oil supply and demand is quite tight, which has brought up the crude oil prices. Based on the current pricing mechanisms, I'm wondering about the impact on your refining & chemicals and marketing businesses when crude oil prices stands at $80-$130 and above $130. I invite Mr. Ren Lixin, the Senior Vice President to take your first question.
In the last year, our domestic E&P business has stuck to the innovation-driven approach. We have enhanced our efforts in oil and gas exploration and development in China, and especially on effective exploration and reserve and production ramp up.
去年公司在准噶尔盆地、阿尔多斯盆地、四川盆地以及塔里木盆地取得了五项重大的战略性突破，发现了多个规模储量区，储量接替率大幅提升。
Last year, we have made five significant strategic breakthroughs in Junggar Basin, Ordos Basin, Sichuan Basin and Tarim Basin. We have discovered multiple reserve zones with sizable reserves, and our reserve replacement ratio went up significantly.
根据独立第三方储量评估机构的评估，2021年公司国内的SEC油气储量当量接替率为147%，其中原油储量接替率达到了221%，均创了公司上市以来的最好水平。
According to the appraisal of D&M, the independent third party reserve appraisal agency, in the past year, PetroChina's domestic oil and gas reserve replacement ratio by SEC standards was 147%, among which crude oil 221%, which is a record high since the company got listed.
谢谢。
Thank you.
我做一点补充。
Our Chairman would like to add several information.
呃 ...
勘探开发呢，是需要有一个持续的过程。所以从2018年以来，我们一直落实国家关于今后若干年要加大勘探开发力度的总体安排。所以我们在这一方面一直在持续地做工作。即使在2020年的油价非常低的情况之下，我们保持了我们的风险勘探的投入。所以有一句话叫坚持数年必有好处。所以我们现在呢，以前的投入现在到了一个相对的产出期，所以这一方面呢，使我们的储量替代率和资源的基础会进一步的增强。我就补充这么点，谢谢。
I want to add that E&P efforts is a long-term process. Since the year 2018, PetroChina has echoed the government's call to intensify our domestic E&P efforts, and we have been working on that continuously. In the year 2020, we see very low crude prices, but we have maintained our investment in risk-taking exploration. Many years of efforts will bring benefits in the end. The many years of CapEx allocated in our upstream sector has brought up very good output for us to see last year and with improving reserve replacement ratio and more solid foundation in our resource base. Thank you.
好，您说的第二个问题由我来回答。我是财务总监柴守平。
I'm CFO Chai Shouping. I'm taking the second question.
第二，您说的第二问题就是关于石油价格管理办法。国家发改委颁布的石油价格管理办法规定，当国际原油价格高于每桶$80时，开始扣减炼油企业加工利润率，直至按加工零利润计算成品油价格。
The NDRC issued a regulation on crude prices, which prescribes that when the international crude price rise above $80 per barrel, the growth refining margin will start to reduce and until, based on processing profit to calculate the crude oil, the refined oil product prices.
当国际原油价格高于每桶130美元，含130美元时，当然这个价格从业界来看，它的可持续性也值得商讨。按现行的管理办法，汽柴油的价格原则上不提或少提。
When the international crude price goes up above $130 per barrel, of course a crude price above $130 per barrel may not be sustainable. If that happens, the diesel and gasoline prices in principle will not increase or only see very modest increase.
对公司而言，我们需要严格遵循国家宏观调控政策，同时也积极建议国家按照市场化原则确定价格机制，以确保油气的稳定供应。
From the perspective of PetroChina, we will strictly comply with the national macro regulation policies. On the other hand, also advocating with government authorities to set prices based on market terms in order to ensure stable supply of oil and gas.
谢谢。
Thank you.