PetroChina Profit Soars to Record Despite Fuel Sales Down 11.1% in China

China state-owned oil giant PetroChina posted record first-half profits as higher global oil and gas prices outweighed Crude oil throughput down 1.4% and fuel sales down 11.1% in China.  China’s oil demand fell to near a two-year low in July. The result follows strong first-half results came after fellow state-owned oil giant Cnooc Ltd. profits.

Sinopec is state owned by the Chinese Government

Big oil rivals also delivered record profits. Saudi Aramco Oil, The UK’s BP, Netherland’s Shell, America’s ExxonMobil, the largest U.S. oil companyChevron, Phillips 66 and Occidental all crushed earnings on surging oil and gas prices. Oil prices have pulled back around 20% since suggesting these record profits may be high points.

PetroChina H1 2022 Record Earnings


  • Interim profit was 82.39 billion yuan ($12 billion), up 55% from a year ago,
  • Revenue grew 35% to 1.614 trillion yuan, according to a statement filed to the Shanghai Stock Exchange.
  • 3.1% increase in oil and gas output to 845 million barrels of oil equivalent, in response to Beijing’s order to enhance domestic energy supply amid an increasingly complex geopolitical environment.
  • PetroChina recorded a 3.4% growth in domestic oil output and 4.4% rise in domestic gas production.
  • PetroChina’s refinery throughput fell 1.4% to 597.5 million barrels in the first half of 2022
  • Sales of gasoline, diesel and kerosene combined were down 11.1% to 71.43 million tonnes.

Capital Expenditure and Debt Reduction

  • PetroChina’s capital expenditure was at 92.31 billion yuan in the first half of 2022, up 25% from a year ago, as the firm expanded oil and gas exploration. That represented 38% of the annual budget this year.

Cheniere Energy, PetroChina sign long-term LNG supply deal

On July 20 Cheniere Energy (NYSE:LNG) said PetroChina (NYSE:PTR) agreed to purchase up to ~1.8M metric tons/year of liquefied natural gas beginning in 2026, reaching the full 1.8M tons in 2028 and continuing through 2050.

Half of the total volume is contingent upon Cheniere (LNG) making a positive final investment decision to build additional liquefaction capacity at the Corpus Christi LNG Terminal beyond the seven-train Corpus Christi stage 3 liquefaction project. Cheniere (LNG) announced last month a positive FID on the expansion of the Corpus Christi stage 3 project.


PetroChina expects China’s apparent refined oil products demand to grow 1.6% in the second half of 2022 from a year ago, following an economic recovery as Beijing vowed more stimulus, a senior company executive said at a conference call on Thursday.

The company aims to have renewable energy take up a third of its business portfolio by 2035.

The firm also forecast China’s natural gas consumption to rise 5.5% in July-December from a year ago, driving total gas demand for 2022 to 380-390 billion cubic metres.

“China’s apparent fuel demand is expected to reach 180 million tonnes in the second half of the year, with a fast recovery of jet fuel consumption,” said Huang Yongzhang, President of PetroChina.

About PetroChina.

PetroChina Co. Ltd. engages in the petroleum related products, services and activities. It operates through the following business segments: Exploration and Production; Refining and Chemicals; Marketing; Natural Gas and Pipeline; and Head Office and Other. The Exploration and Production segment involves exploration, development, production, and marketing of crude oil and natural gas.

The Refining and Chemicals segment focuses on the refining of crude oil and petroleum products, production and marketing of primary petrochemical products, derivative petrochemical products, and other chemical products. The Marketing segment includes marketing of refined products and the trading business. The Natural Gas and Pipeline segment comprises transmission of natural gas, crude oil, and refined products and the sale of natural gas.

The Head Office and Other segment relates to cash management and financing activities, the corporate center, research and development, and other business services supporting the operating business segments of the Group. The company was founded on November 5, 1999 and is headquartered in Beijing, China.

Sources: Reuters, TC

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