PetroChina’s profits climb to record

Bloomberg

PetroChina Co. posted its best-ever first-half earnings as the nation’s top oil and gas driller benefited from soaring global energy prices, and said that government stimulus is starting to lift Chinese oil demand.
The firm reported 82.39 billion yuan ($12 billion) in net income for the first half of the year, up 55% from the same period in 2021, according to an exchange filing. Revenue rises 35% to 1.61 trillion yuan.
Global crude prices averaged $105 a barrel in the first six months, 62% 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 goal of
tapping into cleaner fuels.
PetroChina’s smaller state-owned peer Cnooc Ltd. more than doubled its first-half profit to 71.9 billion yuan. Cnooc has more direct exposure to rising oil prices than PetroChina because it’s mostly focused on offshore drilling and doesn’t have massive refining and petrochemical factories. China Petroleum & Chemical Corp., Asia’s biggest refiner, completes the earnings reports for China’s big three oil companies on Sunday.
Improved drilling profits helped PetroChina 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.
However, the government’s efforts to buttress the economy are starting to bear fruit, Chairman Dai Houliang told an earnings briefing. “The package of stimulus policies to stabilize the economy has delivered good results and China’s oil demand is recovering,” he said.
In that vein, executives told the briefing they expect refined oil product demand to rise 1.6% on year to 180 million tons, while gas consumption should increase 5.5%.