PetroChina Profit Jumps 22% Despite Falling Fuel Sales in China

PetroChina, China's largest oil and gas company, reported a significant jump in its first-half net profit due to higher oil prices and stronger fuel sales. The company's H1 net profit attributable to shareholders rose 22 percent to 103.94 billion yuan ($14.65 billion) from 84 billion yuan a year earlier.

The revenue for the period increased by 5.3 percent at 1.5 trillion yuan, while crude processing fell 5.6 percent year-on-year to 655.3 million barrels. Total gasoline, kerosene, and diesel sales dropped 8.8 percent to 54.3 million metric tons.

PetroChina attributed the decline in fuel consumption to elevated oil prices linked to Middle East tensions, which accelerated the adoption of alternative energy sources in China. The company expects domestic refined fuel demand to face continued pressure from alternative energy and high oil prices, while natural gas demand is expected to recover steadily.