PetroChina’s profits climb to record on global energy rally

PETROCHINA posted its best-ever first-half earnings as the nation’s top oil and gas driller benefited from soaring global energy prices.  

The firm reported 82.39 billion yuan (S$16.7 billion) in net income for the first half of the year, up 55 per cent from the same period in 2021, it said in an exchange filing on Thursday (Aug 25). 

Global crude prices averaged about US$105 a barrel in the first 6 months, 62 per cent higher than last year, providing a windfall to producers after several years of depressed prices. PetroChina has invested heavily in maintaining steady oil production while boosting gas output to match the country’s goals of tapping into cleaner fuels.

Improved drilling profits are helping the company weather the rising cost of imports, as well as weaker demand for fuel as pandemic lockdowns sap industrial activity. China’s leaders have recently tempered expectations of meeting yearly economic growth targets, creating headwinds for domestic energy suppliers.   

PetroChina has said it plans to accelerate a transition to lower-carbon fuels, aiming to increase gas and renewable production to match oil by 2035, and shifting half of its output to hydrogen, geothermal and clean power by 2050. BLOOMBERG