ASIA’S largest oil and gas producer PetroChina reported 21 per cent year-on-year growth in third-quarter net profit that hit a record high, as increased production and improving domestic fuel demand offset lower realised oil and gas prices.

Net profit rose to 46.38 billion yuan (S$8.7 billion), while revenue fell 4.6 per cent to 802 billion yuan, the company said in a stock filing on Monday.

PetroChina’s income compared with 17.86 billion yuan at top Asian refiner Sinopec and 33.88 billion yuan at offshore oil and gas producer CNOOC for the same three months.

Its crude oil output between January and September rose 4.3 per cent versus a year earlier to 706 million barrels, including 22 per cent growth in overseas production to 122 million barrels, PetroChina said, without specifying which countries contributed to the growth.

Natural gas output was up 6.1 per cent to 3,656.6 billion cubic feet.

“(The) company seized the opportune timing of recovery in Chinese macro economy and rebounds in oil and gas markets,” PetroChina said.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The company reported a realised oil price of US$75.30 a barrel during the nine-month period, down 21 per cent on last year, as global oil prices fell following a spike prompted by Russia’s invasion of Ukraine.

Domestic gas prices fell 4.8 per cent to US$8.81 per thousand cubic feet.

Crude oil processing at PetroChina, China’s second-largest refiner after Sinopec, jumped 16.5 per cent in the first nine months to 1,044 million barrels, or 3.82 million barrels per day, in line with other national refiners that stepped up runs to meet recovering domestic fuel demand as well as cashing in on the lucrative export business.

Total sales of petrol, diesel and jet kerosene rose 13.4 per cent on year at 125.6 million tons, including domestic sales at 93 million tons, which represented a 17 per cent growth year on year.

Though smallest among the three refined products, kerosene led the growth with sales during the nine months surging nearly 50 per cent on the year to 14.3 million tons, PetroChina said.

Capital spending amounted to 174 billion yuan between January and September, 10 per cent higher than the year-earlier level.

Apart from heavy spending on exploring for natural gas and oil, the company has continued to invest in downstream and petrochemical operations, launching construction of a US$3 billion petrochemical complex in the western region of Xinjiang in September.

Its Hong Kong-listed shares closed down 3.4 per cent at HK$5.16 on Monday before the earnings release. They have risen 44.5 per cent year-to-date, versus a 12 per cent fall in the Hang Seng index. REUTERS