PetroChina booked a record-high operating profit for the first half of the year amid rising crude oil and natural gas production, which more than offset weak Chinese fuel demand.
PetroChina, the country's biggest oil and gas producer, saw its net profit rise by 3.9% year-on-year to $12.44 billion (88.61 billion Chinese yuan) for the first half of 2024, the company said on Monday.
Operating income jumped by 5% and stood at $224 billion (1.6 trillion yuan) as oil and gas production rose and "The core oil and gas businesses and other operations remained stable and profitable, with key production indicators growing steadily," PetroChina said in a press release.
"The Company achieved record high first half operating results for three consecutive years," it added as it reported growing oil and natural gas production, up by 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 of last year.
Earlier this year, PetroChina reported its highest net profit for a first quarter as its revenues rose by 11% thanks to steady oil prices and higher domestic natural gas demand and production.
The company and other Chinese state-held oil and gas giants have been boosting domestic exploration and production as the world's top crude oil importer looks to bolster its energy security.
In the first half of 2024, PetroChina boasted "solid progress in scientific and preliminary exploration" at ultra-deep oil and gas fields of 10,000 meters (32,800 ft) or more. The drilling of Well-Shenditake 1 exceeded 10,000 meters, setting a new record for the deepest vertical well drilled in Asia, the company said.
In the downstream, PetroChina responded to the tepid domestic fuel demand and the "fluctuation" in market demand by optimizing the resources of crude oil, processing load, product mix, and facility maintenance schedules. As a result, its processed crude volumes rose by 3% and refined products output increased by 2.1% year-on-year. Jet fuel output surged by 42.4% as flying recovered and demand for the fuel jumped this year.
Yet, analysts don't believe jet fuel alone would be able to lift China's overall oil demand.
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com More