appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Yulu Ao

PetroChina, China’s largest oil and gas producer, has announced that it is gradually restoring operations at its Middle Eastern projects after the US-Israeli war in Iran severely disrupted global energy flows this year.
On Monday, the company reported a 22 per cent jump in first-half net profit to 103.9 billion yuan (US$15.4 billion) for the six months ended June, as higher crude oil prices boosted earnings from its upstream operations while natural-gas operations offset weaker oil production and declining domestic demand for refined fuels.
Overall revenue increased 5.3 per cent to 1.53 trillion yuan (US$227.55 billion), according to the company’s interim results.
“We are steadily resuming production at our Middle East projects, with output in the region having recovered to nearly 90 per cent of pre-conflict levels,” said Ren Lixin, the company’s executive director and president, at a results briefing.
The Beijing-based energy giant has benefited from a surge in oil prices amid geopolitical tensions in the Middle East. PetroChina reported that its average realised crude oil price rose 15.6 per cent year on year to US$76.53 per barrel, helping operating profit in its oil, gas and new-energy segment climb 15.3 per cent to 100.4 billion yuan.
Higher prices have helped offset weaker oil production. Total crude output fell 2.8 per cent to 462.9 million barrels during the period, largely because overseas output declined 14.2 per cent amid lower production from Middle East projects, according to the interim report. Domestic crude production slipped 0.5 per cent, while domestic natural gas output rose 2.4 per cent.
PetroChina’s downstream businesses also improved despite weakening demand for conventional fuels. Operating profit from refining, chemicals and new materials rose 31.4 per cent to 14.5 billion yuan, while the firm’s marketing segment operating profit climbed 50.3 per cent to 11.4 billion yuan, the earnings showed.
However, the volume of crude processed fell 5.6 per cent, while refined-product output dropped 8.8 per cent, as higher oil prices and adoption of new-energy sources weighed on demand. PetroChina said domestic sales of petrol, kerosene and diesel also declined 7.3 per cent.
“Although overall refined-fuel consumption may continue to decline in the second half, there are also some positive signs,” chief financial officer Wang Hua said. “The market generally expects the decline in petrol and diesel consumption to narrow from the first half.”
Wang explained that the expansion of new-energy vehicles mainly drove the first-half weakness, along with liquefied natural gas and electric heavy trucks as well as elevated oil prices following the outbreak of the Iran war. Highlighting this transition, PetroChina’s vehicle LNG sales jumped 78.7 per cent, while charging volume increased 150 per cent, he added.
The company also declared an interim dividend of 0.26 yuan per share, which would be paid on October 26. Its shares fell 0.2 per cent to close at HK$10.17 (US$1.29) in Hong Kong on Monday.
PetroChina’s results mirror those of its rival, the China National Offshore Oil Corporation (CNOOC), which last week reported a 23.4 per cent increase in first-half net profit to a record 85.8 billion yuan, driven by higher oil prices and increased production. CNOOC’s revenue rose 16.9 per cent to 242.7 billion yuan, while net production increased 3.7 per cent to 398.7 million barrels of oil equivalent.


Why are fuel and petrochemical prices outpacing crude – and how long will it last?

PetroChina’s first-half profit jumps 22% as higher oil prices offset Iran war supply hit

Elite company: the listed firms that were China’s most valuable before CXMT

China hit an oil and gas output record last year – why is Beijing warning of a squeeze?

PetroChina

The PetroChina logo is displayed on a smartphone screen. Photo: Shutterstock

China’s CNOOC rakes in record first-half profit on high oil prices amid Iran war

A man uses his mobile phone as he walks past the booth for the China National Offshore Oil Corporation at an expo in Beijing. Photo: Reuters

China oil stocks rise as crude rally lifts Sinopec, CNOOC earnings

China’s oil stocks have been in focus since crude prices spiked following the blockade of the Strait of Hormuz. Photo: Reuters

Whether the earnings momentum can be sustained will depend on how the conflict involving the US, Israel and Iran evolves. Photo: Getty Images

China plans for peak oil demand amid pipeline increase, intelligent rig development

A liquified natural gas storage tank at Rudong port in Nantong, Jiangsu province. Photo: Reuters/File photo

Workers at Yangpu Port in China’s Hainan province. Photo: Getty Images

As US threatens ‘D-Day’ for Iranian economy, how will China’s oil supply be affected?

A US guided-missile destroyer blocks an Iran-flagged crude oil tanker attempting to sail towards an Iranian port on April 24. Photo: AFP

An oil tanker unloads imported crude at Qingdao Port in Shandong province on April 4. Photo: Getty Images

A rural city, once known for livestock, now provides China’s AI computing fuel

Photo: Dennis Yip

Grassland in Ulanqab, in northern China’s Inner Mongolia autonomous region, on July 31. Photo: Xinhua

Wind farms and livestock in Ulanqab, in China’s Inner Mongolia autonomous region. Photo: Ben Jiang

Business

China Business

Climate and energy

Companies

Commodities

Markets

As LNG and EV adoption bite into traditional fuel sales, higher global crude prices help the state-backed giant deliver strong earnings


As LNG and EV adoption bite into traditional fuel sales, higher global crude prices help the state-backed giant deliver strong earnings.


PetroChina’s first-half profit jumps 22% as higher oil prices offset Iran war supply hit

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}As LNG and EV adoption bite into traditional fuel sales, higher global crude prices help the state-backed giant deliver strong earnings

As LNG and EV adoption bite into traditional fuel sales, higher global crude prices help the state-backed giant deliver strong earnings