– PetroChina reported a 6.7% drop in revenue and a 5.4% decline in net profit for the first half of 2025, marking its first dual decline since 2020.
– Falling crude oil and refined product prices, alongside reduced sales volumes for key products like polypropylene, gasoline, and diesel, were primary contributors.
– The natural gas segment emerged as a bright spot, with a 10.8% increase in operating profit due to cost optimization and market expansion.
– Global oil market oversupply and accelerated alternative energy adoption are reshaping the industry, pressuring traditional revenue streams.
– PetroChina is aggressively pivoting to renewables, with significant growth in wind/solar power generation, LNG fueling, and EV charging/swapping infrastructure.
PetroChina, one of the world’s largest integrated energy companies, has reported a notable shift in its financial performance. For the first time in five years, the company experienced a simultaneous decline in both revenue and net profit during the first half of 2025. This development signals broader challenges within the global energy sector, driven by fluctuating commodity prices, evolving market demand, and the accelerating transition toward cleaner energy sources.
Financial Performance Overview
PetroChina’s interim report revealed a 6.7% year-on-year decrease in revenue, bringing the total to CNY 1.45 trillion. Meanwhile, net profit attributable to shareholders fell by 5.4% to CNY 84.01 billion. This dual decline underscores the impact of external market pressures on even the most established energy giants.
Key Contributing Factors
The decline was largely influenced by lower average selling prices for crude oil, refined products, and chemicals. Among the company’s eight major product categories, four saw reduced sales volumes, with polypropylene, gasoline, and diesel leading the downturn.
Global Market Dynamics
The global oil market remained oversupplied during this period, contributing to a significant drop in international benchmark prices. The average spot price for Brent crude fell by 14.5% to $71.87 per barrel, while WTI crude declined by 14.4% to $67.6 per barrel.
Impact of Alternative Energy
Competition from renewable energy sources continued to intensify, particularly in the transportation sector. Electric vehicles, biofuels, and hydrogen-based systems are increasingly eroding demand for traditional petroleum products.
Segment-Level Analysis
PetroChina’s business segments displayed varied performance. While the natural gas division reported robust growth, other segments struggled.
Natural Gas: A Silver Lining
The natural gas segment achieved an operating profit of CNY 18.63 billion, up 10.8% year-on-year. This growth was driven by optimized procurement strategies and expanded direct sales to industrial customers.
Challenges in Other Divisions
In contrast, the oil, gas, and new energy segment saw a 6.8% decline in operating profit. The refining, chemical, and新材料 division experienced an 18.9% drop, while marketing operations fell by 25.2%.
Industry-Wide Trends
PetroChina’s results reflect broader challenges within the Chinese and global energy markets. At the 2025 National Petroleum and Chemical Industry Economic Situation Analysis Conference, Fu Xiangsheng (傅向升), Vice President of the China Petroleum and Chemical Industry Federation, highlighted three major industry-wide declines: revenue, total profit, and import-export volume.
Strategic Shifts and Future Outlook
In response to these challenges, PetroChina is accelerating its transition toward cleaner energy and diversified business models. The company reported a 70% year-on-year increase in wind and solar power generation, reaching 3.69 billion kWh. Meanwhile, output of new materials grew by over 50%, and LNG refueling and EV charging/swapping volumes expanded dramatically.
Embracing the Energy Transition
PetroChina has committed to further integrating renewable energy sources, expanding its充换电 (charging/swapping) infrastructure, and developing hydrogen-related capabilities. These efforts align with both market trends and national policy goals aimed at reducing carbon emissions.
PetroChina’s first simultaneous revenue and net profit decline in five years highlights the rapidly changing landscape of the global energy industry. While traditional oil and gas operations face headwinds, strategic investments in natural gas, renewables, and new materials offer a path forward. For investors and industry observers, understanding these dynamics is essential to navigating the future of energy.
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