PetroChina achieved a record-high operating profit for the first half of 2024, driven by increased crude oil and natural gas production that outweighed the impact of weak fuel demand in China.
As the largest oil and gas producer in the country, PetroChina’s net profit rose by 3.9% year-on-year, reaching $12.44 billion (88.61 billion Chinese yuan), according to a company announcement on Monday. Operating income surged by 5%, totaling $224 billion (1.6 trillion yuan), thanks to the rise in oil and gas production. The company noted in a press release that its core oil and gas businesses, along with other operations, remained stable and profitable. It highlighted that key production metrics continued to grow steadily. This marks the third consecutive year of record-high first-half operating results for PetroChina.
The company also benefited from higher international oil prices compared to the same period last year. Earlier in the year, PetroChina reported its highest-ever net profit for a first quarter, driven by a 11% increase in revenues, steady oil prices, and higher domestic natural gas demand and production.
In response to the global need for energy security, PetroChina and other state-owned Chinese oil and gas companies have been enhancing domestic exploration and production. In the first half of 2024, PetroChina made significant advances in exploring ultra-deep oil and gas fields, including drilling the Shenditake 1 well to a record depth of 10,000 meters, the deepest vertical well ever drilled in Asia.
To address the sluggish domestic fuel demand and market fluctuations, PetroChina optimized its crude oil resources, processing loads, product mix, and maintenance schedules. This led to a 3% increase in processed crude volumes and a 2.1% rise in refined product output. Jet fuel production saw a notable 42.4% increase due to a rebound in air travel and rising demand.
However, analysts caution that jet fuel alone is unlikely to significantly boost China’s overall oil demand.