PETROCHINA’S net profit rose 8.3 per cent last year off record levels in 2022, as strong growth in natural gas sales and its marketing segment offset lower realised oil prices.
PetroChina’s net profit amounted to 161.1 billion yuan (S$30.1 billion) in 2023, versus 148.7 billion in 2022, while revenue fell 7.0 per cent to 3,239 billion yuan, the firm said in a filing to the Hong Kong Stock Exchange on Monday (Mar 25).
Operating profit for the natural gas segment more than tripled to 43 billion yuan from around 13 billion yuan, while operating profit in the marketing segment rose 66.7 per cent on the previous year.
The average realised price for crude oil fell by 16.8 per cent compared to 2022 levels.
The national energy giant produced 937.1 million barrels of crude oil last year, or 2.57 million barrels per day, up 3.4 per cent over the previous year (906.2 million bbl). Natural gas output was up 5.5 per cent at 4,932.4 billion cubic feet (bcf).
Refinery crude throughput rose 15.3 per cent to 1,398.8 million barrels, or 3.83 million barrels per day, reversing the previous year’s 1 per cent decline due to a strong recovery in petrol and aviation fuel demand as China dropped pandemic curbs.
PetroChina recorded a 17.3 per cent increase in domestic sales of petrol, diesel and kerosene combined, with domestic kerosene sales surging by 82.1 per cent on 2022.
The group’s chemical new materials output increased 60 per cent on last year.
The refining segment “seized the favourable opportunity of market recovery” and “improved the proportion of featured refined products and high-end chemical products,” the statement said.
PetroChina forecasts this year’s crude oil output to fall by 3 per cent to 909.2 million barrels. Natural gas output is expected to increase by 4 per cent to 5,142.6 bcf.
It also aimed for a 0.3 per cent growth in refinery output this year.
An annual outlook released last month by a research arm of parent company CNPC showed China’s aviation fuel consumption is likely to expand 13.1 per cent this year on a surge in passenger travel, while diesel use may drop 1.8 per cent amid broader economic headwinds.
Capital spending is planned at 258 billion yuan for 2024, which would be 6.3 per cent lower than the 275.3 billion spent last year.
While capital expenditure on the upstream segment is expected to fall, capex in the refining and marketing segments is forecast to increase significantly, by 177 per cent and 49.8 per cent respectively.
The group will “promote the refining and chemical business towards the middle and high-end of the industrial chain,” with extra spending ear-marked to for the group’s petrochemical subsidiaries in Jilin and Guangxi.
Higher spending in the marketing segment will be used to support the development of “integrated energy stations” offering EV charging and hydrogen fuel services, it added. REUTERS
