PetroChina Jan-Sept Net Income Up 60% At Record $16.7 Billion

Asia's largest oil and gas producer PetroChina Co Ltd reported a 60% year-on-year rise in nine-month net profit to record highs, lifted by stronger global energy prices, even as weaker domestic fuel consumption continued to drag on earnings.

Net profit for the January to September period reached 120.3 billion yuan ($16.66 billion), the company said in a statement.

Domestic crude oil output increased 2.7% during the first nine months versus a year earlier to 577 million barrels, while gas output was up 5.1% to 3,296 billion cubic feet.

PetroChina, which is also China's second-largest oil refiner, processed 1.8% less crude oil than a year earlier at 896 million barrels in the first nine months, or 3.28 million barrels per day.

Domestic fuel consumption has been weighed down by Beijing's lengthy COVID restrictions that crimped mobility and economic activities, forcing refiners to cut operations.

Highlighting weakened domestic fuel demand, PetroChina's gasoline output dropped 12% on the year during the period and that of aviation fuel tumbled 33%.

However, the firm's gas business benefited from a 6.6% increase in domestic natural gas sales at 147 billion cubic meters, resulting a 30% growth in operating income in the gas marketing segment.

"As a result of the recurrence of COVID19 in some areas, the demand for refined oil in domestic market declined, while the demand for natural gas in domestic market has been growing," the firm said in a filing to the Hong Kong Stock Exchange.

Its Hong Kong listed shares have dropped 4.9% year-to-date, versus a 34% fall in the Hang Seng index.

($1 = 7.2220 Chinese yuan renminbi)