PetroChina Strengthens Profit Ability     

PetroChina Company Limited (SH: 601857, HK: 857) announced on June 10th it plans to issue up to RMB60 billion of the Domestic Corporate Bonds to its shareholders.
   The scheme is subject to approval by shareholders and China Securities Regulatory Commission, the company said.
    The proceeds of the Bond shall be used to satisfy the demand for mid-term and long-term capital requirements of the company, further improve its debt structure, supplement the working capital, and/or investment in projects such as the Second West-East Gas Pipeline project. The specific use of proceeds shall be determined by the Board in accordance with the capital needs of the company.
   In addition, PetroChina says it has signed an agreement with its controlling shareholder China National Petroleum Corporation (CNPC) on the acquisition of oil products sales assets. Under the agreement, PetroChina will acquire the oil products sales assets from CNPC for a consideration of RMB1.0 billion.
   The assets to be acquired include the 15.67% interest in Zhongyou Beijing Sales Company Limited, the 35.64% interest in Shanghai Oil and Gas Bailianjing Service Station Company Limited, the 49% interest in Shanghai Zhongyou Oil and Gas Enterprise Company Limited, the 75% interest in Shanghai Zhongyou Taihe Service Station Company Limited, the 100% interest in Dalian Economic and Technology Development Zone LPG and Petroleum General Company, the 100% interest in Hebei Zhongyou Sales Company Limited, the 100% interest in Beijing Huayou Petroleum Company Limited and the 100% interest in Tianjin Huabei New Petroleum Technologies Development Enterprise General Company.
   The acquisition will help PetroChina optimize resource, strengthen its competitive edge and increase profit ability.
   The acquisition proposal is also subject to approval by shareholders and the relevant authority regulations.
   CNPC holds 86.29% equity in PetroChina now.