PetroChina's First-Half Profit Rose on Higher Oil Prices

By Kimberley Kao and Megan Cheah

Chinese oil company PetroChina recorded a 24% rise in first-half net profit, rounding out earnings for China's big three energy companies as they flagged a focus on production amid the economic challenges posed by the Middle East conflict.

Six months into the U.S. war with Iran, uncertainty continues to underpin energy markets, with prices of crude oil whipsawing alongside repeated flare-ups in fighting. Diplomatic talks with Tehran have yet to show signs of progress, dimming hopes for the reopening of the Strait of Hormuz, a critical waterway through which one-fifth of the world's oil is transported.

Against that backdrop, the listed arm of state-owned China National Petroleum Corp. delivered net profit of 103.94 billion yuan, equivalent to $15.45 billion, up from 84.01 billion yuan in the same period a year earlier.

Revenue gained 5.3% to 1.53 trillion yuan. PetroChina said the group's average realized price for crude oil rose 16% to $76.53 a barrel in the first half.

"The global oil market experienced intensified volatility due to the situation in the Middle East, with the average price being significantly higher than that of the same period of the previous year," it said Sunday.

Crude-oil production fell 2.8%, while its gasoline and diesel output decreased 8.6% and declined 7.6%, respectively.

In the new-energy business, energy output from wind and solar power plants jumped 37% for the period, it said.

PetroChina has been actively acquiring exploration projects and ramping up its oil and gas output, in line with Beijing's policy to expand energy reserves and bolster energy security.

Total oil and natural gas equivalent output reached 920.6 million barrels in the first half, down 0.3% versus a year ago.

For the second half of the year, PetroChina said it expects the international crude oil market to still face geopolitical uncertainty, with a relatively large risk of volatility in oil prices.

"The domestic refined oil products market demand will continue to be affected by alternative energy and high oil prices, and the demand of the natural gas market is expected to recover steadily," it added.

The results come days after fellow energy giant Cnooc posted record interim profit thanks to higher oil and gas sales. China's biggest oil refiner, Sinopec, also reported stronger first-half earnings, with net profit rising by double digits thanks to higher oil prices.

Write to Kimberley Kao at kimberley.kao@wsj.com and Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

August 30, 2026 20:47 ET (00:47 GMT)