Natural gas sales surge and upstream output drive China’s top oil producer to three consecutive years of record earnings.
Photo by Kuang Da
by Tian Heqi
PetroChina posted a record net profit of 164.7 billion yuan (US$22.8 billion) for 2024, up 2% year-on-year, despite falling global oil prices and weaker refined product sales.
The company’s annual revenue dropped 2.5% to 2.94 trillion yuan, but strong upstream performance and a surge in natural gas sales helped boost profitability. It was the third straight year of record earnings for the country’s largest oil and gas producer and supplier.
PetroChina’s board proposed a final dividend of 0.25 yuan per share, bringing total 2024 dividends to 0.47 yuan, up 6.8% year-on-year, with a payout ratio of 52.2%.
Natural gas sales were the fastest-growing segment, with operating profit jumping 25.5% to 54 billion yuan. PetroChina said it took advantage of lower international gas prices, cut procurement costs, and expanded direct sales to end users.
Meanwhile, its core oil and new energy segment—accounting for over 30% of total revenue—delivered 7.1% profit growth to 159.7 billion yuan.
Total oil and gas output rose 2.2% to 1.8 billion barrels of oil equivalent. Crude output edged up 0.5% to 942 million barrels, while marketable natural gas climbed 4.1% to 145 billion cubic metres.
At year-end, PetroChina’s reserve replacement ratio reached 1.04 for gas and 0.96 for oil under SEC standards—its best in five years. The company also reported significant new discoveries in China’s Tarim, Sichuan, and Ordos basins, as well as overseas in Indonesia and Chad.
PetroChina outpaced its two domestic peers, Sinopec and CNOOC, in terms of net earnings.
Sinopec reported a 16.8% drop in net profit to 50.3 billion yuan, citing weak refining and marketing margins. In contrast, CNOOC, which is more heavily weighted to upstream oil and gas production, saw its net profit rise 11.4% to 137.9 billion yuan.
The divergence highlights structural differences: PetroChina and CNOOC benefit more from upstream operations, while Sinopec remains more vulnerable to swings in downstream margins.
PetroChina’s refining and new materials unit saw operating profit fall 42.1% to 21.4 billion yuan, largely due to tighter refining margins and lower output. However, its chemical segment stood out with profit soaring over fourfold to 3.2 billion yuan, driven by a 13.6% jump in product output and a 49% surge in new materials production.
Capital spending in refining and new materials has steadily increased, with the segment’s share of total capex rising from 6% in 2023 to over 12% in 2024.
Chairman Dai Houliang said PetroChina is accelerating efforts to build a “second growth curve” through low-carbon and digital transformation.
The company doubled its wind and solar power generation in 2024 to 4.72 billion kWh, added 4.95GW in new capacity, and expanded geothermal heating coverage. Dai reiterated the company’s vision for oil, gas and new energy to share the market equally by 2050.
Digitalization is also a strategic focus. Dai said PetroChina is investing in AI integration across its traditional and emerging business lines.
Looking ahead, PetroChina plans to produce 936 million barrels of crude and 5.34 trillion cubic feet of gas in 2025. Total capital expenditure is expected to fall 5% to 262.2 billion yuan.
