PetroChina H1 net profit jumps 22%, boosted by fuel sales, oil price spike

BEIJING: China’s largest oil and gas company, PetroChina , reported on Sunday a 22% jump in first-half net profit, as higher oil prices and stronger fuel sales boosted earnings.

Net profit attributable to shareholders came in at 103.94 billion yuan ($14.65 billion), compared with 84 billion yuan a year earlier, while revenue rose 5.3% to 1.5 trillion yuan, showed a filing with the Hong Kong Stock Exchange.

PetroChina, one of China’s biggest refiners, processed 693 million barrels of crude oil during the first half, up 3% from a year earlier and equivalent to 3.83 million barrels per day.

Total sales of gasoline, kerosene and diesel rose 2.1% to 81.38 million metric tons.

Gasoline sales rose 1.4%, diesel sales rose 0.8%, and aviation fuel sales increased 8.9% to 10.12 million tons.

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“Domestic demand for refined oil products maintained steady growth, particularly driven by aviation transport recovery and seasonal travel,” the company said.

Natural gas sales rose 6.8% to 157.19 billion cubic metres, with domestic sales up 5.4% at 114.88 bcm.

Crude oil output rose 0.8% year on year to 478.4 million barrels, or 2.64 million barrels per day.

Domestic natural gas output rose 4.3% to 2,382.7 billion cubic feet, while overseas gas production decreased 1.2% to 186.2 billion cubic feet.

Output of chemical products totalled 18.06 million tons, up 4.5% year on year, while new-materials output rose 32.1% to 1.37 million tons.

Chemical product exports expanded steadily as PetroChina capitalised on regional market opportunities, with overseas sales volume of chemical products climbing 8.3% year on year.

For the second half, PetroChina expects global economic growth to remain complex, with international crude oil prices fluctuating significantly due to geopolitical risk and shifting supply-demand dynamics.

Domestic natural gas demand is set to sustain steady growth, while demand for refined fuel will face ongoing structural pressure from new energy alternatives despite seasonal transport support, the company said.

Refining margins are likely to face margin pressure amid overcapacity, prompting a shift toward higher-value chemical and new-material product streams.

The company maintained its full-year crude oil and natural gas production targets at 941.3 million barrels and 5,470.5 billion cubic feet, respectively.

It also maintained its annual capital expenditure budget at 279.4 billion yuan.

PetroChina’s Hong Kong-listed shares closed down 1.2% at HK$10.12 on Friday and have risen 28.5% so far this year, compared with a 3.4% gain in the Hang Seng Index.