(Bloomberg) — PetroChina Co.’s earnings fell last year, as softer crude oil prices and sluggish fuel demand weighed on profits.
The country’s largest oil and gas producer reported net income of 157.3 billion yuan ($22.8 billion), compared with 164.7 billion yuan in 2024, according to an exchange filing on Sunday. Brent crude averaged about $68 a barrel — 15% lower than the previous year — as global supply outpaced demand.
Weaker oil prices were partially cushioned by PetroChina’s natural gas portfolio. The company’s oil and gas output rose 2.5% last year, led by growth in the cleaner-burning fuel. China’s state-run majors have made domestic supply a priority to bolster the country’s energy security, an effort that’s taken on even greater importance after war erupted in the Middle East.
PetroChina said it plans to raise capital expenditure to 279.4 billion yuan this year, from 269.1 billion yuan in 2025, while aiming for crude output of 941.3 million barrels of oil equivalent.
Gas has emerged as a key earnings driver for the country’s state-run giants, and for PetroChina in particular. Its mix of domestic and overland supply, as well as varied seaborne imports, should help counter the risk from disruptions caused by the war and the Iranian strike on Qatar’s export capacity.
Moreover, PetroChina’s parent, 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 big three oil and gas firms to release earnings and has the most balanced asset portfolio of its peers, spanning drilling, refining and retail.
Sinopec, which is heavily geared to oil processing, reported a 34% drop in net income for 2025, a slump that reflected less need for transport fuels as China’s economy electrifies and overcapacity in low-end petrochemicals manufacturing. Offshore drilling specialist Cnooc Ltd. saw net income drop 11%.
PetroChina’s operating profit on refining business rose to 21.7 billion yuan from 18.2 billion yuan a year ago, while operating profit on natural gas sales grew to 60.8 billion yuan, from 54 billion yuan.
–With assistance from Twinnie Siu, Ailing Tan and Tian Ying.
(Adds details throughout.)
