Analysts warned, though, that a repeat of last year's growth rate would be difficult to achieve this year because another 40 percent rise in crude oil prices is unlikely.

Though PetroChina is one of Asia's most profitable listed firms, its 2005 performance fell short of analysts' estimates because of a refining loss and higher costs. It had been expected to post a profit of 139.95 billion yuan, based on the average estimate of 30 analysts surveyed by IBES.

The Beijing-based company, which controls two-thirds of China's oil production, was a big beneficiary of rising crude prices. Its average oil price rose 43.4 percent to US$48.37 (HK$377.29) a barrel, from US$33.72 a barrel in 2004.

PetroChina's earnings will continue to climb provided its average oil price stays at US$40 a barrel or above, said vice chairman and president Jiang Jiemin. "Looking ahead, the company anticipates a positive business environment in 2006 as global crude oil prices are expected to remain high while domestic demand for oil, gas and petrochemical products stays strong," Jiang said.

PetroChina aims to pump 5.2 percent more oil and gas this year - 826.6 million barrels of oil and 1,411.5 billion cubic feet of gas - to help maintain its reserve replacement ratio at over 100 percent. Last year's production - 822.9 million barrels of oil and 1,119.5 billion cubic feet of gas - for the first time incorporated its share of overseas output by a 50-50 joint venture formed last June with its parent, China National Petroleum Corp.

"We won't miss out on good opportunities to acquire and expand our international business, but we won't be reckless and hasty in our moves to buy assets," said chairman Chen Geng. He said negotiations to buy oil assets in Kazakhstan from its parent through their joint venture were still under way. He also confirmed that the company was in talks to buy some safety- and environmental protection-related businesses from CNPC.

Beijing is encouraging China's petroleum giants to acquire overseas oil and gas assets to ensure security of supply for the world's fastest-growing economy.

CNPC paid US$4.18 billion for the Kazakhstan assets last October.

Chen, who is also president of CNPC, said China and Russia would sign three cooperative accords in Beijing today, though he declined to say whether CNPC or PetroChina would be the Chinese vehicle. PetroChina's 2005 sales totaled 552 billion yuan in 2005, up 39 percent from the year before. Its overseas business generated sales of 20.7 billion yuan and a 2.8 billion yuan profit - 3.7 and 2.1 percent of total turnover and profit, respectively.

The company suffered a loss of 19.8 billion yuan in its oil-refining business, compared with a profit of 11.9 billion yuan in 2004, as the increase in the domestic price of refined products was much lower than the increase in the price of crude oil.

The central government controls fuel prices to curb inflation, preventing PetroChina and other refiners from fully passing on higher costs to consumers. But the government is studying changes to the way it prices energy products and may also impose a windfall tax on upstream oil profits.

PetroChina has set aside 149 billion yuan for capital spending this year, up 19.4 percent from 2005.

PetroChina - more than US$2.3 billion worth of whose shares belong to US investor Warren Buffett - declared a final dividend of 0.180325 yuan per share. Total dividend for the year was 0.338044, a 45 percent payout ratio.

Shares of PetroChina surged 1.96 percent to close at HK$7.80 before Monday's results announcement.