PetroChina has reported record year-on-year net profit growth of 21%, with third-quarter earnings reaching $6.3 billion on increased output and rising domestic fuel demand. The company saw a 4.3% year-on-year increase in crude oil output during the first nine months of this year and a 6.1% increase in natural gas output. While PetroChina realized lower oil and gas prices during the first nine months of this year, higher domestic fuel demand allowed it to increase production and boost net profit.
Total fuel sales increased 13.4% year-on-year, with domestic sales up 17% as the company-the largest oil and gas producer in Asia-took timely advantage of China's macroeconomic recovery.
The record net profit earnings report on Monday follows PetroChina's previous record-high profit report for the first half of 2023 in late August, when the company's refining business showed clear signs of recovery. On August 30, PetroChina's net profit rose by 4.5% year-on-year, hitting $11.7 billion. However, total revenues at that time fell by 8.3%, compared to the same period a year ago due to the decline in realized oil and gas prices. Monday's record net profit report also comes as China's industrial firms reported higher gains in both August and September as Beijing institutes a series of policy measures to support economic stabilization.On Friday, Reuters cited China's National Bureau of Statistics as showing that industrial profits had slowed their decline. Profits fell 9% in September (YoY), compared to an 11.7% drop in August (YoY).
Industrial and consumption activity were stronger than expected in September. Also last week, China's Sinopec, the world's biggest refiner by capacity, reported a 34% increase in net profit for the third quarter, citing strong fuel sales and higher processing rates. Sinpopec's net profit for July to September was around $2.44 billion, while revenues increased by 4.2% in the quarter, year-on-year.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com More