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PetroChina Co. posted record operating profits for the first half of the year on the back of strong drilling output and higher oil prices, which allowed it to offset weak fuel demand in China.
China’s largest oil and gas company posted a net income of 88.61 billion yuan ($12.44 billion) for the six months through June, climbing 3.9% compared to the same period last year. The company’s total revenue climbed 5% to 1.554 trillion yuan for the reporting period.
“This was primarily due to the Group’s increase in the sales price of crude oil and gasoline, the sales volume of natural gas and sales volume and price of kerosene, polyethylene and other products,” PetroChina said in its filing released late Monday.
The company’s directors noted the strength of international crude oil prices, and that demand in the domestic natural gas market “continued to grow rapidly.”
PetroChina’s oil and natural gas equivalent output climbed to 905.5 million barrels, compared to 893.8 million barrels last year.
The company said it “actively promoted” the development of new projects and focused on its exploration and development of oil and gas reserves, allowing it to achieve “multiple major breakthroughs” and discoveries in several basins, including the Tarim, Sichuan and Junggar basins.
PetroChina’s Hong Kong listed shares are up 35% year-to-date.