PetroChina Profit Drops on Lower Oil Cost, Weak Fuel Demand

(Bloomberg) — PetroChina Co.’s earnings fell last year as crude oil prices softened and fuel demand slowed.

The country’s largest oil and gas producer reported net income of 157.3 billion yuan ($22.8 billion) in 2024, compared with 164.7 billion yuan in 2024, according to a stock exchange filing on Sunday. Brent crude is averaging $68 per barrel – 15% lower than the previous year – as global supply exceeds demand.

Weakening oil prices were partially buffered by PetroChina’s natural gas portfolio. The company’s oil and gas production rose 2.5% last year, driven by growth in cleaner-burning fuel. China’s state-run majors have made domestic supply a priority to bolster the country’s energy security; This effort took on even greater importance after the outbreak of war in the Middle East.

PetroChina said it plans to increase capital spending to 279.4 billion yuan this year from 269.1 billion yuan in 2025 and targets crude production of 941.3 million barrels of oil equivalent.

Gas has emerged as a major source of revenue for the country’s state-run giants, especially PetroChina. A mix of domestic and overland supply, as well as various seaborne imports, will help cover the risk from disruptions caused by the war and Iran’s attack on Qatar’s export capacity.

Moreover, PetroChina’s parent company, China National Petroleum Corp., has been at the forefront of efforts to diversify imports, including deals to expand pipeline supplies from Turkmenistan and Russia.

The company is the last of China’s three major oil and gas firms to report earnings and has the most balanced asset portfolio of its peers, spanning drilling, refining and retail.

Sinopec, which focuses heavily on oil processing, reported a 34% decline in net income for 2025; This decline reflects the reduced need for transportation fuels as China’s economy electrifies and excess capacity to produce low-quality petrochemicals. Offshore drilling specialist Cnooc Ltd. saw an 11% drop in net income.

PetroChina’s operating profit from its refining business rose to 21.7 billion yuan from 18.2 billion yuan a year ago, while operating profit from natural gas sales rose to 60.8 billion yuan from 54 billion yuan.

–With the help of Twinnie Siu, Ailing Tan and Tian Ying.

(Details are added throughout.)

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