Research On The Strategy-oriented Financial Statement For Petro China

With the rapid development of China’s economy, the demand for petroleum is rising sharply, making its supply security face severe challenges. In the other end, the status of China decides that the oil supply security depends on the conditions of the leading oil firms in the country. Thus, it is a common concern to make their development healthy. For the purpose, the PetroChina Company Limited(PetroChina for abbreviation) is chosen and analyzed with the Harvard analytical framework. The analysis starts with the business environment and the race conditions of the oil industry that is fulfilled by the aid of PEST and five dints model. Based on the analysis, SWOT is then utilized for reviewing the reasonability of PetroChina’s strategies. After that, the financial and accounting analysis is implemented based on PetroChina’s financial statements between 2010 and 2014. During the process, PetroChina is compared with its major domestic competitor: SinoPec. The quantitative results give a reasonable conclusion about its earnings equality, level of experience and risk appetite. The assessments are then used for drawing its outlook and supplying a set of suggestions.The conclusions drawn by the quantitative analysis are summarized as follows. The capital scale of PetroChina expands rapidly in the past four years. But its property management level remains insufficient, the efficiency of its capital management and its profitability need to be improved. Though its long-term debt is kept in a reasonable range, its ability for paying the short-term debt faces the challenges. To deal with these challenges, the thesis suggests that PetroChina should improve it daily management of the inventory, actively explores the international market and carefully controls its expansion speed of the solid investment. Besides, its developing mode should be changed such that the refined management becomes its mainstream. Along with its rapid growth in its investment of research and development, it must improve its capability of technology transform for promoting its industrial upgrading. From the viewpoint of strategy, the thesis suggests that PetroChina optimizes its oil and gas business, seizes the opportunity of the new energy resources, improves its management level and build the confidence that it can finally survive in the cut-throat market competition.