PetroChina H1 profit rises 22% on fuel sales and oil price spike

• Aviation fuel sales surged 8.9% to 10.12 million tons, driven by transport recovery and seasonal travel demand
• Natural gas sales climbed 6.8% to 157.19 billion cubic meters, with domestic sales up 5.4% at 114.88 billion cubic meters
• PetroChina expects refining margins to face pressure from overcapacity in the second half, prompting a strategic shift toward higher-value chemical and new-material products

PetroChina H1 Profit Rises 22% on Fuel Sales and Oil Price Spike

Key Financial Performance:

PetroChina, China's largest oil and gas company, reported a 22% increase in first-half net profit on August 30, driven by higher oil prices and stronger fuel sales.

Operational Highlights:

• Processed 693 million barrels of crude oil (up 3% year-over-year), equivalent to 3.83 million bpd
• Total refined product sales rose 2.1% to 81.38 million metric tons
• Aviation fuel sales surged 8.9% to 10.12 million tons, reflecting travel recovery
• Natural gas sales increased 6.8% to 157.19 billion cubic meters
• Crude oil output reached 478.4 million barrels (up 0.8%), or 2.64 million bpd
• Chemical products output jumped 4.5% to 18.06 million tons
• New-materials output soared 32.1% to 1.37 million tons

Market Drivers:

The company attributed growth to steady domestic demand for refined products, particularly from aviation transport recovery and seasonal travel. Chemical product exports expanded 8.3% as PetroChina capitalized on regional market opportunities.

Forward Outlook:

PetroChina expects a complex second-half environment with:

• International crude prices fluctuating due to geopolitical risks and supply-demand shifts
• Continued natural gas demand growth
• Structural pressure on refined fuel demand from new energy alternatives
• Margin pressure in refining due to overcapacity

The company maintained full-year production targets of 941.3 million barrels of crude oil and 5,470.5 billion cubic feet of natural gas, with capital expenditure budgeted at 279.4 billion yuan.

Market Reaction:

Hong Kong-listed shares were mentioned, though specific price movements were not detailed in the report.