In a noteworthy development reflecting the resilience of the oil sector, PetroChina has reported a record high in profits for the first half of the year, propelled primarily by escalating crude-oil prices. The company announced a 3.9% increase in net income, totaling 88.61 billion yuan for the January to June period.
This growth occurs even as the refining segment has faced challenges, demonstrating the complexities of operating within a fluctuating market environment. Total revenue for PetroChina surged by 5% to reach 1.554 trillion yuan, as per filings released to the Hong Kong Stock Exchange. The diluted earnings per share (EPS) rose to 49 yuan, a slight increase from 48 yuan the previous year, marking a consistent upward trend for the nation’s largest oil company. PetroChina highlighted that global oil prices averaged around 5.5% higher in the first half of the year compared to the same timeframe last year.
This increase in oil prices plays a significant role in the company’s profitable performance, compensating for other areas that encountered difficulties. In the realm of production, PetroChina reported a domestic extraction of oil and natural gas equivalent to 807.3 million barrels, which reflects a growth of 1.5% year-over-year.
Nevertheless, the company pointed out that domestic sales of refined products exhibited variability. While there was a notable uptick in aviation fuel sales, spurred by a resurgence in travel following pandemic restrictions, the demand for diesel and gasoline saw declines of 5.6% and 2.7%, respectively, in the same period. The sluggish domestic economy and ongoing issues within the property sector have posed challenges for PetroChina.
The increasing adoption of electric vehicles (EVs) and other energy-efficient transportation options also plays a role in altering the landscape of energy consumption. As PetroChina acknowledged, there has been a noticeable deceleration in domestic demand for refined oil products, yet the natural gas market continues to experience rapid growth, indicating a shift towards alternative energy sources. Following the earnings announcement, PetroChina's shares rose by 4.1% in Hong Kong, reflecting investor confidence as the company navigates the complexities of the current energy market.
As of the latest reports, PetroChina’s stock is priced at HKD 9.32, showing a commendable change of +0.27 or a percentage change of +2.98%. These figures highlight a positive outlook amid the industry's challenges and transformation. Overall, PetroChina's performance in the first half of 2024 underscores the intricate dynamics of the global oil market, where factors such as crude prices, domestic demand, and the shift towards cleaner energy sources converge to shape the future of energy companies in China and beyond..