PetroChina, the largest oil and gas producer in China, reported on Tuesday a net profit for the first quarter up by 2.3%, becoming the only state oil giant to book higher Q1 earnings compared to a year earlier.
PetroChina booked a net profit of $6.4 billion (46.8 billion Chinese yuan) for the first quarter, up by 2.3% from the same period of 2024.
The company’s average realized price for crude oil was $70.00 per barrel in the first quarter, down by 7.2% compared with $75.41 per barrel for the same period of last year.
The average selling price of domestic natural gas fell by 3.9%, but the operating profit of the gas division rose by 9.7% thanks to higher natural gas sales in China, PetroChina said.
Total revenues fell by 7.3%, dragged down by lower demand for refined petroleum products.
PetroChina’s earnings were higher thanks to increased natural gas production and sales in China, which offset the weaker refining and marketing of oil products business.
The company noted the Chinese government’s policy support to allocate between 2025 and 2029 special funds for shale gas exploration, development, and production.
The subsidy funds will be allocated based on the principle of “more production, more subsidies,” PetroChina said.
While PetroChina reported an increase in Q1 earnings, other Chinese state-controlled giants did not fare that well, due to higher exposure to the refining market in China and to lower oil and gas prices.
China Petroleum and Chemical Corporation, or Sinopec, reported on Monday a 27.6% slump in its first-quarter profit, on the back of lower oil prices and weaker fuel demand.
CNOOC, another major Chinese state oil firm, booked a 7.9% decline in first-quarter net profit, due to low oil prices, whose effect more than offset the 4.8% increase in the company’s net oil and gas production.
By Tsvetana Paraskova for Oilprice.com
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