PetroChina’s first-half profit jumps 22% as higher oil prices offset Iran war supply hit

PetroChina, China's leading oil and gas producer, has seen a 22% increase in its first-half net profit, reaching 103.9 billion yuan (US$15.4 billion), as higher crude oil prices helped offset the impact of the US-Israeli war in Iran. The company reported a 5.3% rise in overall revenue to 1.53 trillion yuan (US$227.55 billion) for the six months ending June.

Executives noted that production in the Middle East has recovered to nearly 90% of pre-conflict levels. The average realized crude oil price increased by 15.6%, reaching US$76.53 per barrel, further boosting operating profits in the oil, gas, and new-energy segment. Despite a 2.8% decrease in total crude output, PetroChina's downstream businesses, including refining, chemicals, and new materials, experienced a 31.4% increase in operating profit.

However, the company also faced challenges, such as a 5.6% decline in crude processed and an 8.8% drop in refined-product output, as higher oil prices and the adoption of new-energy sources reduced demand. The company announced an interim dividend of 0.26 yuan per share, set to be paid on October 26.