Financial Analysis Of Petrochina From 2013 To 2017 Based On The Harvard Analytical Framework

China’s petroleum industry is facing severe and complex domestic and foreign situation.World economy has recovered slowly since financial crisis in 2008,and energy requirement has also risen slowly.The success of American technological revolution of shale oil and gas increased quantity delivery of oil resources.OPEC started price war of international crude oil in order to keep market share.Price of crude oil dropped rapidly from the over $100 per barrel in July of 2014 to lower than $40 per barrel,and the whole world entered an era of Low Oil Prices.China is in a key period of transition and upgrading of industrial structure.Economic growth slows down,economic descending pressure is enlarged constantly,and economic development has entered a New Normal.With the promotion of industrialization and urbanization in China,development of heavy industry slows down,environmental standard is enhanced,concept of sustainable development enjoys popular support,acceleration of petroleum consumption slows down greatly,and petrochemical industry has conflict of structural excess.Under such severe domestic and foreign situation,how does China’s petroleum industry cope with the economic depression,and realize sustainable development,is worth our deep thought.This paper selects PetroChina,which is in leading place in China’s oil and gas industry,as researching objective.It selects Sinopec,CNOOC,Exxon Mobile and Royal Dutch Shell as comparative companies,and Harvard Analytical Framework as the guideline to analyze the financial statement of PetroChina from 2013 to 2017 qualitatively and quantitatively.Firstly,it conducts strategic analysis,and investigates whether development strategies of PetroChina fit with current domestic and foreign environment.Then it conducts financial analysis,and judge the actual degree of operating conditions reflected by financial statement of PetroChina.Then financial analysis evaluates financial management level and financial condition of PetroChina.Finally analysis of prospect predicts development prospect of PetroChina,and put forward problems and suggestions.It can be known from this research that: Development strategies of PetroChina are compliance with its current domestic and foreign environment.Accounting policies are stable,accounting information is reliable,and financial management level is in middle place in its industry;The overall development trend is good.However,there is still a gap between the profitability of its assets and other high-level international counterparts,and its technical level,management level and profitability growth ability need to be improved.All these are manifested in four aspects,namely,high operation cost pressure,high non-operating costs,large non-operating income amount,and business structure to be optimized.Combining the development strategies of PetroChina,the following suggestions are given: as for resource strategies,set up a concept of Value Is More Important Than Scale,and improve resources quality;In the aspect of marketing strategies,turn the thought of securing supplying of resources to marketing thought,and strengthen competing and service awareness;In terms of internationalization strategies,improve operational level of international capital;When it comes to innovation strategies,enlarge scientific and researching investment,and realize comprehensive innovation of enterprise.