PetroChina (00857) 1H26 Net Profit Climbs 22% to RMB 103.94 Billion; Interim Dividend Set at RMB 0.26 per Share

Bulletin Express
Yesterday

PetroChina Company Limited reported solid interim results for the six months ended 30 June 2026, driven by higher crude prices, resilient natural gas sales and improved downstream margins.

Financial Highlights • Revenue rose 5.3% year-on-year to RMB 1,527.49 billion. • Profit attributable to equity holders grew 22.0% to RMB 103.94 billion, lifting annualised ROE to 6.3% (up 0.9 ppt). • Operating cash flow increased 10.6% to RMB 251.28 billion; free cash flow stayed positive despite larger capex. • Net borrowings fell to RMB 6.18 billion, cutting net gearing to 11.2%. • The Board declared an interim dividend of RMB 0.26 per share (total payout: RMB 47.59 billion), payable on 16 September (A-shares) and 26 October (H-shares).

Segment Performance • Oil, Gas & New Energy: Operating profit advanced 15.3% to RMB 100.45 billion, underpinned by a 15.6% rise in realised crude price to USD 76.53/bbl; domestic oil output dipped 0.5% while marketable gas rose 2.4%. • Refining, Chemicals & New Materials: Operating profit improved to RMB 14.53 billion (1H25: RMB 11.06 billion) as higher product prices offset a 5.6% decline in crude throughput. Ethylene output jumped 20.8%; new-materials volume surged 61.4%. • Marketing: Operating profit expanded to RMB 11.36 billion, aided by stronger international trading margins and rapid growth in LNG refuelling, charging and non-fuel retail. Domestic refined-product sales slipped 7.3% amid weaker demand. • Natural Gas Sales: Operating profit climbed 29.3% to RMB 24.09 billion on a 3.9% increase in sales volume to 161.22 billion m³ and tighter cost control.

Balance Sheet & Investment • Total assets reached RMB 3,024.03 billion, up 5.6% since year-end 2025. • Capital expenditure totalled RMB 75.02 billion; full-year spending is budgeted at RMB 279.40 billion, 79% earmarked for upstream and new-energy projects. • Key expansion projects include Tarim Phase II ethylene, large wind/solar bases, LNG terminals and gas-storage construction.

Market & Operational Context Global crude prices averaged USD 87.60/bbl in 1H26, 23.7% higher year-on-year, buoying upstream earnings but pressuring domestic fuel demand. PetroChina processed 655.3 million barrels of crude (-5.6%) and produced 5.07 billion kWh of wind and solar power (+37.3%).

Outlook (2H26) Management expects continued oil-price volatility and muted domestic oil-product demand, but anticipates steady gas consumption recovery. Strategic focus remains on high-efficiency exploration, accelerating green-energy build-out, expanding high-value petrochemicals and integrated energy retail, and maintaining disciplined capital allocation to deliver “stable profit growth and steady value enhancement.”

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