PetroChina Sees Profit Decline Amid Lower Oil Costs and Weaker Fuel Demand

PetroChina Co. Reports 4.6% Decline in Net Income for 2025

Financial Highlights

• Net income: 157.3 billion yuan ($22.8 billion), down from 164.7 billion yuan in 2024
• Revenue: Not specifically disclosed in the article
• Crude oil prices: Averaged $68 per barrel, a 15% decline from the previous year

Business Outlook

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PetroChina, the largest oil and gas producer in China, reported a decline in net income for 2025 due to softer crude oil prices and sluggish fuel demand. The company's oil and gas output rose 2.5% last year, led by growth in natural gas production, which has emerged as a key earnings driver for the company.

Capital Expenditure and Production Goals

PetroChina plans to increase capital expenditure to 279.4 billion yuan this year, up from 269.1 billion yuan in 2025. The company aims to produce 941.3 million barrels of oil equivalent in crude output.

Diversification Efforts

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The company's parent, China National Petroleum Corp., has been at the forefront of efforts to diversify imports, including deals to expand pipeline supplies from Turkmenistan and Russia. PetroChina's balanced asset portfolio, spanning drilling, refining, and retail, should help counter the risk from disruptions caused by the war in the Middle East and the Iranian strike on Qatar's export capacity.

Comparison with Peers

PetroChina's earnings decline was less severe than its peers, with Sinopec reporting a 34% drop in net income and Cnooc Ltd. seeing a 11% decline. The company's operating profit on refining business rose to 21.7 billion yuan, while operating profit on natural gas sales grew to 60.8 billion yuan.