PetroChina Profit Slips in 2025 as Falling Oil Prices Pressure Earnings

PetroChina reported a 4.5% decline in net profit for 2025, as softer global crude oil prices weighed on its overall financial performance despite stable operational output. The company posted net earnings of approximately 157.3 billion yuan, marking a drop from the previous year’s record results.

The decline was largely attributed to a significant fall in realized oil prices, which dropped by more than 14% year-on-year. This downturn in pricing also impacted PetroChina’s revenue, which slipped about 2.5% to 2.86 trillion yuan, reflecting broader weakness in international energy markets.

However, the company’s upstream operations showed resilience. Crude oil production recorded modest growth, while natural gas output increased at a stronger pace, supported by rising domestic demand. PetroChina’s natural gas segment emerged as a key contributor, delivering improved profitability and highlighting the company’s gradual shift toward cleaner energy sources.

On the demand side, trends remained mixed across fuel categories. Gasoline consumption declined slightly, while diesel demand saw a marginal increase. Jet fuel demand, however, rose sharply, driven by continued recovery in the aviation sector. Refining throughput edged lower during the year, influenced by structural adjustments in China’s downstream industry.

Looking ahead, PetroChina indicated plans to boost capital expenditure in 2026, with a focus on maintaining stable oil production and expanding its natural gas business. The company also cautioned that ongoing oil price volatility and geopolitical uncertainties could continue to affect its earnings trajectory.

The results underscore the challenges facing global energy companies as they navigate fluctuating commodity prices while balancing growth and transition toward cleaner energy.