PetroChina's Q1 net profit rose 2% year-on-year to 48.3 billion yuan, setting a new quarterly earnings record | Financial Report Highlights

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In the first quarter of 2026, PetroChina achieved operating revenue of 736.383 billion yuan, a slight year-on-year decrease of 2.2%; net profit attributable to parent was 48.333 billion yuan, up 1.9% year-on-year, setting the best quarterly performance in the company's history. Basic earnings per share were 0.264 yuan, also up 1.9% year-on-year.

Profit growth was driven by structural business highlights. Operating profit from natural gas sales surged by 39.7% year-on-year, refining business operating profit increased by 57.7%, and both chemical and sales segments improved. Excluding extraordinary items, net profit was 49.579 billion yuan, up 5.0% year-on-year, indicating the company's core business quality is continuously improving.

Although upstream business production grew 0.7% in the first quarter, affected by lagging declines in crude oil sales and prices compared to international market trends, the operating profit of oil, gas, and new energy business was 41.045 billion yuan, a decrease of 5.843 billion yuan year-on-year, down about 12.5%.

Operating profit from sales business was 6.47 billion yuan, up 28.3% year-on-year, mainly due to increases in international trading volume and profit margin. Combined operating profit from refining, chemical, and new material businesses grew 54%. Natural gas business profit increased from 13.5 billion yuan last year to 18.867 billion yuan, up about 39.7%. The company stated that domestic refined oil consumption saw a slight increase and natural gas demand remained stable in the first quarter.

On the asset side, total assets grew 6.1% from the start of the year to 3,038.5 billion yuan, and net assets attributable to parent slightly increased to 1,624.5 billion yuan. However, net cash flow from operating activities was 8.447 billion yuan, a drastic year-on-year decline of 39.4%, mainly due to changes in working capital, which warrants continued attention.

Oil & Gas Segment Profit Decreased Year-on-Year

In the first quarter, international crude oil prices remained relatively high, with the North Sea Brent crude oil futures average price at $78.38/barrel, up 4.5% year-on-year. However, PetroChina's average realized crude price was only $64.08/barrel, down 8.5% year-on-year, showing a clear deviation from the benchmark price. This difference may relate to the company's hedging strategies and crude oil sales structure.

The company maintained a "stable" production tone. Oil and gas equivalent output reached 470.2 million barrels in the first quarter, up 0.7% year-on-year, with domestic output at 423.3 million barrels, up 1.2% year-on-year. Structurally, domestic crude oil production remained at 197.9 million barrels, flat year-on-year; marketable natural gas production was 13.526 trillion cubic feet, up 2.4%, with natural gas still the main incremental source. Overseas crude oil output was 39.9 million barrels, down 5.6% year-on-year, dragging overall overseas oil and gas equivalent output down 4.2%.

Impacted by both falling prices and reduced crude oil sales, operating profit of oil, gas, and new energy business was 41.045 billion yuan, down 5.843 billion yuan year-on-year, a decrease of about 12.5%, making it the only segment in the whole group with profit decline. Unit oil and gas operating cost was $9.82/barrel, up only 0.6% year-on-year, showing stable cost control overall.

New Energy Business Shines: Wind & Solar Power Up 38.5%

The new energy business was one of the brightest growth segments in the quarterly report. During the reporting period, the company’s wind and solar power generation reached 2.33 billion kWh, a sharp increase of 38.5% from the previous year’s 1.68 billion kWh, with rapid scale expansion, becoming an important strategic supplement to traditional oil and gas business.

The company continues to advance acquisition of new energy quotas, conversion, and project construction, accelerating low-carbon transition while ensuring stable and increased oil and gas production. Although the scale of new energy business remains auxiliary compared to traditional oil and gas, rapid growth shows capital investment is generating real output, and its contribution to overall value creation is expected to gradually emerge in the future.

Refining, Chemicals & New Materials Surpass Expectations

The refining, chemicals, and new materials segment was the biggest profit highlight this quarter. In Q1, the company processed 343 million barrels of crude oil, up 1.7% year-on-year, with facilities running stably at high capacity.

In chemicals, ethylene production reached 2.755 million tons, up 21.4% year-on-year; synthetic resin output was 3.981 million tons, up 17.2%; synthetic rubber increased 18.8%; new materials output reached 1.228 million tons, a sharp rise of 53.5%. Upgraded projects like Dushanzi Petrochemical’s ethane-to-ethylene transformation released remarkable production capacity. Urea output fell 32.5% due to market restructuring.

On profits, refining business operating profit was 7.176 billion yuan, up 2.625 billion yuan year-on-year, an increase of 57.7%, mainly due to higher refining gross margin. Chemical business operating profit was 1.107 billion yuan, up 0.27 billion yuan year-on-year. Combined operating profit from refining, chemicals, and new materials reached 8.283 billion yuan, becoming a key force offsetting upstream profit gaps. The company continues to advance "molecular refining" and optimize high-value product structure, with effects gradually materializing.

Natural Gas Sales Profit Surges 39.7%

Natural gas sales business stood out as the brightest segment for the whole group this quarter. In Q1, the company sold 93.891 billion cubic meters of natural gas, up 6.9% year-on-year; domestic sales were 73.812 billion cubic meters, up 3.5%. Rapid sales growth combined with lower imported gas procurement costs led to natural gas sales operating profit of 18.867 billion yuan, up 5.359 billion yuan year-on-year, an increase of about 39.7%.

Policy support played a big role in the profit surge. In February 2026, the Ministry of Finance and two other ministries issued an import tax preferential policy for energy resources exploration, development, and utilization during the “15th Five-Year Plan.” For eligible imported natural gas, a proportion of value-added tax paid at import is refunded. For contracts signed before the end of 2014, the refund rate is as high as 70%; for other imported natural gas, 80% is refunded based on the price inversion ratio. This policy is effective from January 1, 2026 to the end of 2030, and will benefit the company's cost control and profitability of imported gas business in the long term.

Refined Oil Sales Up 4.8%, Kerosene Leads with 22.9%

Sales business also saw notable improvement. In Q1, the company’s total sales of gasoline, diesel, and kerosene reached 38.533 million tons, up 4.8% year-on-year; domestic sales were 28.018 million tons, up 1.8%. Kerosene sales grew most prominently, with total sales up 22.9% year-on-year, and domestic kerosene sales up 5.4%, reflecting a continued recovery in domestic air travel demand.

Operating profit from sales business was 6.47 billion yuan, up 1.427 billion yuan year-on-year, an increase of about 28.3%, mainly due to higher domestic refined oil sales and improved gross margin from international trading. At the end of the quarter, the company had 22,050 gas stations and 19,880 convenience stores, maintaining a stable terminal network scale.

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