PetroChina announced a first-quarter revenue of 736.383 billion yuan, marking a slight year-on-year decrease of 2.2%. Net profit attributable to shareholders reached 48.333 billion yuan, up 1.9% compared to the same period last year, setting a new quarterly record for the company. Basic earnings per share stood at 0.264 yuan, also reflecting a 1.9% increase.
The profit growth was underpinned by structural improvements across key business segments. Operating profit from natural gas sales surged by 39.7% year-on-year, while the refining segment saw a 57.7% increase. Both the chemical and marketing divisions showed improved performance. Adjusted net profit, which excludes one-time gains and losses, was 49.579 billion yuan, rising 5.0% year-on-year, indicating a sustained enhancement in the company's core operational quality.
Despite a 0.7% increase in upstream production output for the quarter, the operating profit from the oil, gas, and new energy segment was 41.045 billion yuan. This represented a decrease of 5.843 billion yuan, or approximately 12.5%, compared to the previous year, primarily due to a decline in crude oil sales volume and prices that lagged behind international market trends.
The marketing segment reported an operating profit of 6.47 billion yuan, a significant 28.3% year-on-year increase, largely driven by higher sales volume and improved profit margins in international trade operations. Combined operating profits from refining, chemicals, and new materials businesses grew by 54%. Profit from the natural gas business rose to 18.867 billion yuan from 13.5 billion yuan a year earlier, an increase of about 39.7%. The company noted a slight growth in domestic refined oil product consumption and stable natural gas demand during the quarter.
On the asset side, total assets grew by 6.1% from the beginning of the year to 3,038.5 billion yuan, while equity attributable to shareholders increased modestly to 1,624.5 billion yuan. However, net cash flow from operating activities was 8.447 billion yuan, a sharp decrease of 39.4% year-on-year, mainly impacted by changes in working capital, which warrants ongoing attention.
**Oil and Gas Segment Profit Declines Year-on-Year** In the first quarter, international crude oil prices remained relatively high, with the average price for Brent crude futures at $78.38 per barrel, up 4.5% year-on-year. In contrast, PetroChina's average realized crude oil price was $64.08 per barrel, down 8.5% from the previous year, showing a notable deviation from the benchmark price. This discrepancy may be related to the company's hedging strategies and its crude oil sales mix.
On the production front, the company maintained a stable approach. Total oil and gas equivalent output reached 470.2 million barrels, a 0.7% increase year-on-year. Domestic output accounted for 423.3 million barrels, up 1.2%. Structurally, domestic crude oil production held steady at 197.9 million barrels, unchanged from the same period last year, while marketable natural gas output was 1.3526 trillion cubic feet, a 2.4% increase, confirming gas as the primary source of growth. Overseas crude oil production was 39.9 million barrels, down 5.6%, contributing to an overall 4.2% decline in overseas oil and gas equivalent output.
Impacted by both lower prices and reduced crude oil sales volume, the operating profit for the oil, gas, and new energy segment fell by 12.5% to 41.045 billion yuan, making it the only division within the group to experience a profit contraction. The unit lifting cost for oil and gas was $9.82 per barrel, rising only 0.6% year-on-year, indicating overall stable cost control.
**New Energy Business Shines: Wind and Solar Power Generation Soars 38.5%** The new energy segment emerged as one of the fastest-growing areas in the quarterly report. During the period, the company's wind and solar power generation reached 2.33 billion kilowatt-hours, a substantial 38.5% increase from 1.68 billion kilowatt-hours a year earlier. This rapid expansion positions new energy as a significant strategic complement to the traditional oil and gas business.
The company is actively progressing in acquiring new energy quotas, converting them into projects, and advancing construction. While ensuring stable and increased production from its core oil and gas operations, PetroChina is accelerating its low-carbon transition. Although the scale of the new energy business remains secondary to traditional operations, its rapid growth demonstrates that capital investment is translating into tangible output, with future contributions to overall value creation expected to gradually increase.
**Refining, Chemicals, and New Materials Become Profit Surprise** The refining, chemical, and new materials division was the standout profit performer this quarter. PetroChina processed 343 million barrels of crude oil, a 1.7% year-on-year increase, with facilities maintaining high and stable operational rates.
In chemical products, ethylene output surged 21.4% to 2.755 million tons; synthetic resin production increased 17.2% to 3.981 million tons; synthetic rubber output grew 18.8%; and new materials production jumped 53.5% to 1.228 million tons, highlighting the effective capacity release from upgrade projects like the Dushanzi ethane-to-ethylene facility. Urea production, however, declined by 32.5% due to market adjustments.
Profit-wise, the refining business achieved an operating profit of 7.176 billion yuan, an increase of 2.625 billion yuan or 57.7%, mainly due to expanded refining margins. The chemical business reported an operating profit of 1.107 billion yuan, up 270 million yuan. Combined, the refining, chemical, and new materials segments generated a total operating profit of 8.283 billion yuan, playing a crucial role in offsetting the profit shortfall from the upstream segment. The company continues to advance its "molecule management" refining concept and optimize its high value-added product portfolio, with results gradually materializing.
**Natural Gas Sales Profit Jumps 39.7%** The natural gas sales business delivered the most impressive performance group-wide this quarter. PetroChina sold 93.891 billion cubic meters of natural gas, a significant 6.9% year-on-year increase, with domestic sales rising 3.5% to 73.812 billion cubic meters. The combination of rapid sales growth and lower procurement costs for imported gas drove the segment's operating profit to 18.867 billion yuan, a substantial increase of 5.359 billion yuan, or approximately 39.7%.
This profit surge was supported by significant policy tailwinds. In February 2026, three ministries including the Ministry of Finance issued import tax incentives for energy resource exploration and utilization during the "16th Five-Year Plan" period. The policy offers VAT rebates on eligible imported natural gas, with a 70% rebate rate for gas imported under long-term contracts signed before the end of 2014, and an 80% rebate based on the cost-price differential for other imported gas. Effective from January 1, 2026, through the end of 2030, this policy is expected to provide long-term benefits for the company's cost control and profitability in its imported gas operations.
**Refined Oil Product Sales Volume Up 4.8%, Jet Fuel Leads with 22.9% Growth** The marketing segment also recorded considerable improvement. Total sales of gasoline, jet fuel, and diesel—the three major refined products—reached 38.533 million tons, a 4.8% year-on-year increase. Domestic sales amounted to 28.018 million tons, up 1.8%. Jet fuel sales showed the most robust growth, with total sales volume surging 22.9% and domestic jet fuel sales increasing 5.4%, reflecting a continued recovery in domestic air travel demand.
Operating profit for the marketing segment was 6.47 billion yuan, an increase of 1.427 billion yuan or about 28.3% year-on-year, primarily benefiting from higher domestic refined product sales and improved international trade margins. As of the end of the quarter, the company operated 22,050 service stations and 19,880 convenience stores, maintaining a stable retail network scale.
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