KEY POINTS
- PetroChina’s first-half net profit rose 22 percent to 103.94 billion yuan, with revenue up 5.3 percent to 1.5 trillion yuan.
- Total gasoline, kerosene and diesel sales fell 8.8 percent as high prices and alternative energy sapped demand, with aviation fuel down 12.5 percent.
- Natural gas sales rose 3.9 percent and new-materials output surged 61.4 percent, cushioning weaker transport-fuel volumes.
PetroChina’s first-half net profit jumped 22 percent, lifted by higher oil prices, even as weaker Chinese demand dragged fuel sales lower at the country’s largest oil and gas company.
Net profit attributable to shareholders rose to 103.94 billion yuan, or about 14.65 billion dollars, from 84 billion yuan a year earlier, the company reported on Sunday. Moreover, revenue climbed 5.3 percent to 1.5 trillion yuan, showing that firmer prices more than offset softer volumes across its core fuel business.
Fuel demand slides at home
However, the sales picture weakened sharply. Specifically, total gasoline, kerosene and diesel sales fell 8.8 percent to 54.3 million metric tons, as gasoline dropped 8.6 percent, diesel fell 7.6 percent and aviation fuel slid 12.5 percent. Consequently, crude processing declined 5.6 percent to 655.3 million barrels, while crude output eased 2.8 percent to 462.9 million barrels.
According to PetroChina, elevated oil prices tied to Middle East tensions sped up the shift to alternative energy and weighed on domestic gasoline and diesel use. Therefore, the company warned that refined fuel demand will keep facing pressure from cleaner energy and high prices, though it expects natural gas demand to recover steadily.
Gas and new materials cushion the blow
Meanwhile, natural gas offered a counterweight. Natural gas sales rose 3.9 percent to 161.22 billion cubic metres, with domestic sales up 1.1 percent, while domestic gas production increased 2.4 percent and overseas output gained 1.1 percent. Consequently, the segment helped steady group earnings as transport fuels retreated.
Additionally, PetroChina leaned harder into chemicals and advanced products. Chemical output grew 6.7 percent to 21.318 million tons, while new-materials output surged 61.4 percent to 2.688 million tons, underscoring a push beyond traditional fuels. Ultimately, investors have rewarded the pivot, since the Hong Kong-listed shares have gained 21.60 percent so far this year, against a 0.18 percent decline in the Hang Seng Index.
