PetroChina Co. has posted a record profit for the previous year, as a boost in production helped counteract the impact of lower energy prices and weaker refining results. The state-owned oil giant’s net income rose by 2% to 164.7 billion yuan ($22.7 billion), as disclosed in a filing on Sunday, although the results fell short of analyst expectations. The company’s revenue, however, dropped to 2.94 trillion yuan from 3.01 trillion yuan, reflecting a 3% decrease in global oil prices on average during the period.
PetroChina, the largest oil and gas producer in China, is the final major state-run oil company to report its annual earnings. The company’s asset portfolio remains one of the most diversified, spanning upstream drilling, refining, and retail operations, with a dominant position in China’s natural gas market.
The energy company achieved a 2.2% increase in output, reaching a record 1.797 billion barrels of oil equivalent. This includes a 4.1% rise in natural gas production. For 2025, PetroChina has set its production target at 1.827 billion barrels, although it anticipates a slight decline in oil output, alongside reduced capital expenditures.
The company’s upstream division, which encompasses oil exploration and new energy, posted a 7.1% increase in profits to 159.7 billion yuan. Meanwhile, its gas and pipelines segment surged 25%, reaching 54 billion yuan, thanks in part to cheap Russian gas and lower prices for imported liquefied natural gas, which bolstered sales.
However, the downstream sector, which includes refining, chemicals, and retail, faced significant challenges. Persistent oversupply in the market caused sharp declines in performance, a trend that is expected to persist this year. The Chinese government is pushing refiners to reduce fuel production in favor of more petrochemical outputs, as the rise of electric vehicles (EVs) continues to dampen demand for diesel and gasoline. The International Energy Agency projects continued decline in demand for transportation fuels in the year ahead.
Sinopec, China’s top refiner, recently reported a drop in profits, citing weakening demand due to the EV boom and a slowdown in China’s economy. Meanwhile, Cnooc Ltd., the country’s largest offshore driller, reported an earnings increase following an expansion in production.
In broader energy news, China has made significant strides in energy security, with both domestic gas production and Russian piped gas imports reaching record levels. Meanwhile, China’s response to U.S. President Donald Trump’s tariffs has evolved, with a strategy that includes restricting the export of critical minerals to the United States.
Additionally, China’s finance ministry is set to inject $69 billion into four of the nation’s largest state banks via share placements, fulfilling a previous pledge to strengthen the capital buffers of these key financial institutions.
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