China’s largest oil and gas company PetroChina Co. posted record operating profits for the the six months through June thanks to strong drilling output and higher oil prices, which allowed it to offset weak fuel demand domestically.
Global benchmark Brent averaged more than $83 a barrel in the first half, compared with about $80 over the same period in 2023.
In the first half of this year PetroChina’s net income totaled 88.61 billion yuan ($12.44 billion) up 3.9% on an annual basis. The company’s total revenue grew by 5% to 1.554 trillion yuan for the reporting period.
“This was primarily due to the Group’s increase in the sales price of crude oil and gasoline, the sales volume of natural gas and sales volume and price of kerosene, polyethylene and other products,” PetroChina said in a filing with the Hong Kong Stock Exchange released on Aug. 26.
The company’s directors noted the strength of international crude oil prices, and that demand in the domestic natural gas market “continued to grow rapidly.”
PetroChina’s oil and natural gas equivalent output climbed to 905.5 million barrels, compared to 893.8 million barrels last year.
The company said it “actively promoted” the development of new projects and focused on its exploration and development of oil and gas reserves, allowing it to achieve “multiple major breakthroughs” and discoveries in several basins, including the Tarim, Sichuan and Junggar basins.
According to Bloomberg News, analysts at Morgan Stanley note that energy company’s results are in line with expectations.
PetroChina’s Hong Kong listed shares are up 35% year-to-date.
