PetroChina, China's largest oil and gas company, reported on Sunday that first-half profit attributable to shareholders rose 22% to 103.936 billion yuan, or about $14.65 billion, as higher oil prices strengthened earnings even while domestic demand for refined fuels weakened. Revenue for the six months through June increased 5.3% to 1.527 trillion yuan, according to the company's interim results and Reuters.
The state-controlled producer said basic earnings per share reached 0.57 yuan, compared with 0.47 yuan in the same period a year earlier. Net cash generated by operating activities advanced 10.6% to 251.281 billion yuan. The board approved an interim dividend of 0.26 yuan per share, representing a total planned distribution of about 47.585 billion yuan.
Operational figures showed a split between stronger upstream conditions and pressure in the fuel market. Crude-oil output declined 2.8% from a year earlier to 462.9 million barrels, while domestic natural-gas production increased 2.4%. Total natural-gas sales, including liquefied natural gas, grew 3.9% to 161.22 billion cubic metres, with domestic gas sales up 1.1%.
PetroChina processed 5.6% less crude, at 655.3 million barrels, and its combined sales of gasoline, kerosene and diesel fell 8.8% to 54.3 million metric tons. Gasoline sales dropped 8.6%, diesel sales declined 7.6% and aviation-fuel sales decreased 12.5%. At the same time, chemical-products output rose 6.7% to 21.318 million tons, while output of new materials jumped 61.4% to 2.688 million tons.
The company linked softer refined-fuel consumption to high oil prices associated with Middle East tensions and to faster adoption of alternative energy in China. Those forces benefited the value of upstream production but increased feedstock costs and added pressure to traditional transport-fuel demand, illustrating the different effects of the energy market across PetroChina's integrated operations.
PetroChina said domestic refined-fuel demand is likely to remain under pressure from high prices and alternative energy, while natural-gas demand should recover steadily. Investors will now assess whether stronger upstream revenue and expanding gas and new-materials activity can continue to offset lower oil-product volumes as the company moves through the second half of 2026.
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