PetroChina reported record operating profit in the first half of the year amid rising crude oil and natural gas production that more than offset weak Chinese fuel demand.
PetroChina, the country’s largest oil and gas producer, reported a 3.9% year-on-year increase in net profit to $12.44 billion (88.61 billion Chinese yuan) in the first half of 2024, the company said on Monday.
Operating profit rose 5% to $224 billion (1.6 trillion yuan) as oil and gas production increased and “core oil and gas businesses and other activities remained stable and profitable, with key production indicators growing steadily,” PetroChina said in a press release.
“The company has achieved record first-half operating results for three consecutive years,” it added, reporting growing oil and natural gas production, which increased 1.3% year-on-year in oil equivalent terms.
PetroChina also benefited from higher international oil prices in the first half of 2024 compared to the same period last year.
Earlier this year, PetroChina reported its highest first-quarter net profit as its revenue rose 11% thanks to stable oil prices and higher domestic demand and production of natural gas.
The company and other state-owned Chinese oil and gas giants are increasing domestic exploration and production as the world’s largest crude importer seeks to bolster its energy security.
In the first half of 2024, PetroChina demonstrated “solid progress in scientific and preliminary exploration” in ultra-deep oil and gas fields of 10,000 meters (32,800 feet) or more. The drilling of Well-Shenditake 1 exceeded 10,000 meters, setting a new record for the deepest vertical well in Asia, the company said.
Downstream, PetroChina responded to weak domestic fuel demand and “volatility” in market demand by optimizing crude oil resources, processing capacity, product mix and plant maintenance schedules. As a result, crude oil volumes processed increased 3% and refined product output increased 2.1% year-on-year. Jet fuel production increased 42.4% as air travel recovered and demand for the fuel surged this year.
However, analysts do not believe that China’s entire oil needs could be met by kerosene alone.
By Charles Kennedy for Oilprice.com
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