HONG KONG, March 29, 2026, 18:23 HKT
PetroChina Co., Ltd. reported a 4.5% drop in 2025 net profit, citing weaker oil prices that weighed on its bottom line. Revenue decreased 2.5%, the company said in annual results filed in Hong Kong on Sunday.
The takeaway: PetroChina is ramping up spending on major, long-term projects and doubling down on gas, right as China’s energy mix keeps evolving and oil markets get unpredictable again. The company’s capital expenditure is set to reach 279.4 billion yuan in 2026, compared with 269.1 billion yuan the year before. Still, management flagged the risk that geopolitics could trigger sharp price moves.
PetroChina’s figures join a lackluster showing from China’s top state-run oil firms. CNOOC reported an 11.5% slide in 2025 net earnings this week, while Sinopec posted a sharper 36.8% decline earlier. PetroChina, though, managed to steady things—higher profits from gas sales, along with refining and marketing, cushioned the impact of softer crude.
The company’s average realized crude price dropped 14.2%, landing at $64.11 per barrel. Crude production ticked up just 0.7% to 948 million barrels. Marketable gas output jumped 4.5% to 5,363.2 billion cubic feet. The natural gas sales unit posted a 12.6% operating profit increase, finishing at 60.8 billion yuan.
Downstream data landed unevenly. Domestic gasoline demand dipped 2.3%. Jet kerosene, essential for airlines, leapt 18.3%—air travel’s rebound made itself felt. Crude runs edged down 0.2% after PetroChina pulled the plug for good on its largest northeastern refinery in mid-2025, following Beijing’s cap on total oil-processing capacity.
PetroChina is projecting marginally reduced crude production for 2026, putting the target at 941.3 million barrels. Gas output, on the other hand, is set to climb, with guidance at 5,470.5 billion cubic feet. Crude processing figures barely move—steady at 1.377 billion barrels. The company is also putting forward a final cash dividend at 0.25 yuan per share, which adds up to roughly 45.8 billion yuan, pending shareholder signoff.
Volatility is the headline risk. PetroChina warned that geopolitics could disrupt supply and prices, leading to sudden market swings; Brent crude has already jumped over 50% since this month’s Middle East conflict erupted. “As long as transit through the Strait of Hormuz is affected, all Asian countries will feel the pinch,” said Suvro Sarkar, who leads the energy sector team at DBS Bank. NORD/LB’s Thomas Wybierek flagged that steeper transport costs and supply-chain bottlenecks are putting the squeeze on the chemical sector. Reuters
PetroChina expects China’s natural gas demand to keep rising in 2026, even with gasoline and diesel consumption on the slide. That shift pushes the company to rely more on gas, after its gas sales unit turned in stronger operating profit last year. Now, PetroChina moves into another year facing volatile oil prices and hefty capital outlays.
