AsianFin -- PetroChina Co. achieved record profits last year as increased production helped counter lower energy prices and weaker refining performance.
Net income at China’s largest oil and gas producer rose 2% to 164.7 billion yuan ($22.7 billion), according to a filing on Sunday, though the figure fell short of expectations. Revenue declined to 2.94 trillion yuan from 3.01 trillion yuan, reflecting a roughly 3% drop in average global oil prices compared to the previous year.
PetroChina was the last of China’s state-owned oil giants to release annual earnings. With a diversified portfolio spanning upstream exploration, refining, and retail, the company also holds a dominant position in China’s natural gas market.
Total output increased by 2.2% to a record 1.797 billion barrels of oil equivalent, driven by a 4.1% rise in natural gas production. The firm has set a 2025 target of 1.827 billion barrels, though oil output is expected to decline slightly alongside a reduction in capital expenditure.
Upstream operations, including new energy, reported a 7.1% profit increase to 159.7 billion yuan. Meanwhile, gas and pipeline earnings surged 25% to 54 billion yuan, benefiting from cheap Russian gas imports and lower costs for imported liquefied natural gas (LNG).
Explore more exclusive insights at nextfin.ai.