PetroChina Co Ltd Q1 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Lei Mu - JPMorgan Chase & Co, Research Division - Analyst : I have 2 questions. First is following Andy's questions. So we've seen the inventory loss has been impaired significantly in 1Q. My question would be what inventory cost that reflects in the current impairment, let's say, the ending price of Brent by March, it was $23 per barrel. Did we fully impair all the inventories to that level? Or what could price we use to impair the inventory? That's my first question. My second question is, so we've all seen the cash flow challenge in first quarter on to the COVID-19 impact. Should we expect the cash flow to quickly recover in second quarter? And in that case, what the dividend level we should expect for the full year? Unidentified Company Representative And Madame (inaudible) will answer your question. Unidentified Company Representative [Interpreted] For the first quarter, our inventory loss rate impairment reached RMB 10.9 billion. And since PetroChina is upstream-heavy company, most of our impairments will happen in our upstream. That is the trading oil and also, in our downstream, the marketing also from the trading business. [And] calculate the crude oil price is yet to be stabilized and we will take consideration of the internal and external operating environment as well as the change of oil prices, we'll do the impairment testing based on the accounting standards. At the dividend payout policy, we will take flexible measures, and we will adhere to 45% of our net profit for the [dividend] payout, and we will still stick to that.

Question: Qin Peijing - CITIC - Analyst : (foreign language)