PetroChina Overview
PetroChina is the listed flagship of CNPC and, by its own description, the largest oil and gas producer and seller in China, one of China's largest companies by revenue, and one of the world's largest oil companies. It is a vertically integrated national champion spanning upstream exploration and production (948.0 million barrels of crude and 5,363.2 bcf of marketable gas in FY2025), refining and chemicals (1,375.9 million barrels processed), China's largest fuel retail network (22,127 service stations) and the country's dominant natural gas wholesaler (314.7 bcm sold in FY2025). Unlike Western majors, its strategic mandate blends shareholder returns with national energy security, which shapes capital allocation toward domestic reserve replacement, gas storage and supply resilience. Its investment case rests on a low-cost, gas-weighted domestic upstream base, a near-zero net-debt balance sheet (net borrowings RMB 21.4bn at end-2025), a payout ratio above 50%, and a nascent but fast-growing new-energy and new-materials portfolio positioned for China's 15th Five-Year Plan (2026–2030).
Company's own description
In its FY2025 filing, PetroChina states that it principally engages in: the exploration, development, production, transportation and marketing of crude oil and natural gas, and new energy business; the refining of crude oil and petroleum products; the production and marketing of primary petrochemical products, derivative petrochemical products and other chemical products, and new materials business; the marketing of refined oil products and non-oil products and trading business; and the transportation and sale of natural gas [AR25].
Business model
PetroChina operates an integrated "two industrial chains" model — the oil chain (crude production → refining/chemicals → wholesale/retail of fuels and international trading) and the gas chain (gas production plus imported pipeline gas and LNG → storage → wholesale to city-gas distributors, power generators and industrial users). Integration is the core economic engine: in FY2025, 699.8 million barrels (50.9%) of the 1,375.9 million barrels it refined came from its own upstream production [AR25]. Intersegment sales of RMB 2,017,803m in FY2025 (versus external revenue of RMB 2,864,469m) illustrate how heavily value moves internally before reaching customers [AR25].
Revenue model mix
| Revenue source (external, FY2025) | CNY Mn | Share of group |
|---|---|---|
| Marketing (refined product wholesale/retail, non-oil retail, international trading) | 1,822,223 | 63.6% |
| Natural Gas Sales | 578,857 | 20.2% |
| Refining, Chemicals and New Materials | 326,429 | 11.4% |
| Oil, Gas and New Energy | 135,029 | 4.7% |
| Head Office and Other | 1,931 | 0.1% |
| Total | 2,864,469 | 100% |
PetroChina's revenue is overwhelmingly product sales recognised at a point in time — crude oil, natural gas, refined products, chemicals and non-oil retail goods — plus pipeline transportation revenue [AR25, note (i)]. There is no material subscription or licensing component. On an external-revenue basis in FY2025 [AR25 segment note]:
The profit mix is the inverse of the revenue mix: upstream contributed 57.0% of segment operating profit in FY2025 while generating 4.7% of external revenue.
Value chain position and customers
Upstream: Operator of China's largest onshore basins (Songliao/Daqing, Ordos/Changqing, Tarim, Junggar, Sichuan, Bohai Bay, Qaidam) and a portfolio of overseas assets (Middle East, Central Asia, Americas, Asia-Pacific, Africa). Customers are largely internal (refineries) plus external crude buyers via international trading.
Midstream: Following the 2020 transfer of its trunk pipelines to China Oil & Gas Pipeline Network Corporation (PipeChina), PetroChina retains a 29.90% equity stake in PipeChina rather than operating the national grid, while it is building out its own gas storage (three CNPC storage companies acquired in Jan 2026) and LNG receiving terminals (Jiangsu, Fujian, Tangshan) [AR25].
Downstream: Refining and chemicals for industrial customers (polyolefins, synthetic rubber, fibre materials, lubricants, asphalt, marine fuels, paraffin), wholesale fuels to distributors, and retail fuels to consumers and fleets via 22,127 stations and 19,814 convenience stores [AR25].
Gas marketing: City-gas utilities (including its own subsidiary Kunlun Energy), power generators, industrial users and direct customers.
End-markets
Transportation fuels (gasoline, diesel, jet), industrial and residential gas, power generation (gas-fired and growing wind/solar), petrochemicals feeding packaging, autos, textiles and construction, marine bunkering, and, increasingly, EV charging, LNG trucking and geothermal heating.
Independent characterisation
PetroChina is best understood as a quasi-sovereign integrated energy utility with commodity leverage concentrated in upstream oil. Its earnings sensitivity is asymmetric: crude price swings move upstream profit (FY2025 upstream operating profit fell 14.8% on a 14.2% fall in realised crude price), while the gas chain — supported by state pricing frameworks and growing demand — has become a structural second earnings pillar (gas segment profit +12.6% in FY2025 to RMB 60.8bn) [AR25]. The refining and marketing chain is a low-margin volume business (segment margins of 2.2% and 0.7% on gross segment revenue) whose economic role is to monetise integrated barrels and defend market share against EVs, LNG trucks and private mega-refiners. The company's strategic latitude is constrained by state policy (refining capacity caps, fuel price formulas, energy-security mandates), which bounds both downside and upside.
Strategy
Stated strategy (FY2025 Annual Report themes)
Management's stated framework for the 15th Five-Year Plan, in paraphrase [AR25]:
Five development strategies: innovation, resources, market, internationalisation, and green and low-carbon.
Two cross-cutting measures: "quality and profitability enhancement" and "low-cost development."
Ambition: to become a leading (world-class) integrated energy and chemical company over the 15th Five-Year Plan.
Operating priorities: increase oil and gas reserves and output; transform and upgrade refining/chemicals toward the mid-to-high end ("reduce oil, increase chemicals" and "reduce oil, increase specialty products"); strengthen marketing and customer service; secure safe, stable and profitable operation of the oil and gas industrial chains; develop "new quality productive forces" in new energy and new materials.
2026 operating guidance
| 2026 plan metric | Target | FY2025 actual |
|---|---|---|
| Crude oil output (mmbbl) | 941.3 | 948.0 |
| Marketable gas output (bcf) | 5,470.5 | 5,363.2 |
| Oil and gas equivalent (mmboe) | 1,853.4 | 1,841.9 |
| Crude processed (mmbbl) | 1,377.1 | 1,375.9 |
| Capex (RMB bn) | 279.4 | 269.1 |
Source: [AR25].
Initiatives in the last 24 months
| Initiative | Detail | Status / date | Source |
|---|---|---|---|
| Gas storage consolidation | Acquired three CNPC gas storage companies (10.97 bcm working gas) for RMB 40.02bn via JVs with PipeChina Energy Storage and Panjin state capital | Completed Jan 2026 | [GAS25], [AR25] |
| Refining capacity rationalisation | Dalian main refinery shut permanently mid-2025; reported plan to close 19 outdated units (unconfirmed) | 2025–2026 | [NEWS] |
| Ethylene and new materials build-out | Jilin and Guangxi ethylene started 2025; Tarim Phase II, Fushun, Lanzhou, Blue Ocean, Dalian Xizhong Island underway; new materials output +62.7% in FY2025 and +61.4% in 1H2026 | Ongoing | [AR25], [IR26H1] |
| Wind/solar scale-up | >20 GW of quotas; 7.93 TWh generation FY2025; target "rapid growth" plus offshore wind and direct green-power supply | Ongoing | [AR25] |
| Pumped storage entry | Equity investment in State Grid Xin Yuan (14.79%) | 2,025 | [AR25] |
| CCUS full-chain demonstration zone | Capture at North China and Liaohe petrochemical plants; Jilin CO2 pipeline | Ongoing | [AR25] |
| Integrated energy stations | "Oil, gas, hydrogen, power, non-oil": 1,525 new stations FY2025; 592 in 1H2026; 37,600 + 18,500 charging guns | Ongoing | [AR25], [IR26H1] |
| LNG trucking | 450 stations FY2025; 208 in 1H2026 | Ongoing | [AR25], [IR26H1] |
| Overseas renewal | Oman Block 5 extension; Chad Block H start-up; Suriname exploration (drilling 2027); Aktobe rolling exploration | Ongoing | [AR25], [NEWS] |
| Unconventional gas | Supported by MOF special clean-energy fund subsidies 2025–2029 for CBM, shale and tight gas | Policy issued 13 Mar 2025 | [AR25] |
| LNG Canada stake partial sale (to fund Phase 2) | Weighing sale of part of 15% stake | Early stage, unconfirmed | [NEWS] Bloomberg, 28 Jul 2026 |
Medium-term financial framework
Management does not issue earnings or ROE targets. The disclosed financial commitments are: (1) dividend payout comfortably above the Articles' 30% floor — 14th FYP average payout 51% and FY2025 payout 54.7%; (2) maintaining FCF above RMB 100bn; (3) capex discipline in the RMB 270–280bn range; (4) low gearing (11.2%).
Products & Services
Pricing models are commodity-linked throughout: crude at international benchmark-linked prices; refined products under the NDRC price-adjustment mechanism (19 adjustments in 2025); natural gas under a mix of regulated city-gate pricing and market-based industrial/LNG pricing [AR25].
Oil, Gas and New Energy
| Product / asset line | Description and key metrics | Target customer | Flagship / latest |
|---|---|---|---|
| Domestic crude oil | 780.3 mmbbl FY2025 (+0.4%); avg realised crude price US$64.11/bbl FY2025 (US$74.70 FY2024); lifting cost US$12.04/bbl | Own refineries; external buyers | Daqing (Gulong shale oil demo zone), Changqing (Qingcheng base), Xinjiang (Jimsar shale oil demo zone), Tarim (Fuman) |
| Overseas crude oil | 167.7 mmbbl FY2025 (+1.8%); 1H2026 overseas output -14.2% due to Middle East disruption | Trading arm; regional refiners | Iraq (Rumaila, West Qurna-1, Halfaya, Ahdab), Kazakhstan (Aktobe, PetroKazakhstan), Oman Block 5 (second contract extension 2025), Chad Block H (planned start-up), UAE ADNOC concessions |
| Domestic natural gas | 5,201.2 bcf FY2025 (+4.9%) incl. conventional, tight gas, shale gas, CBM, coal-rock gas | Natural Gas Sales segment | Sichuan (Tianfu tight gas, Changning-Weiyuan shale gas), Ordos (Sulige), Tarim |
| Overseas natural gas | 162.0 bcf FY2025 (-8.5%) | Local markets; trading | Central Asia, Australia (Arrow Energy CBM, with Shell) |
| Proved reserves | Crude 6,049 mmbbl (-2.2%); gas 73,121 bcf (+0.4%) at end-2025 | — | Reserve life of crude c.6.4 years; gas c.13.6 years at FY2025 production (computed) |
| Wind and solar power | 7.93 TWh FY2025 (+68.0%); quotas >20 GW obtained; 1H2026 5.07 TWh (+37.3%) | Own operations (electrification) and grid | 1.3 GW Tarim Shangku PV (grid-connected 2025); Altay wind/solar; Yumen Hongliuquan wind; GW-scale projects in Haixi (Qinghai) and Shanshan (Tuha) |
| Geothermal heating | >100m m2 newly contracted; >22m m2 newly added heating area FY2025 | Municipal heating | Northern China heating projects |
| CCUS | 2.664 Mt CO2 utilised FY2025 (+40.3%); 1.373 Mt injected 1H2026 | EOR in own oilfields | North China and Liaohe Petrochemical capture projects; Jilin Petrochemical–Jilin Oilfield million-tonne CO2 pipeline (under construction) |
| Gas storage | Acquired 10.97 bcm working gas capacity (Xinjiang, Xiangguosi, Liaohe) in Jan 2026 | Peak-shaving for gas chain | Xinjiang Hutubi, Chongqing Xiangguosi, Liaohe Shuangtaizi complexes |
| Pumped storage (equity) | 14.79% of State Grid Xin Yuan Holdings | — | Investment made 2025 |
Sources: [AR25], [IR26H1], [GAS25], [NEWS] IraqiNews/SCMP.
Refining, Chemicals and New Materials
| Product line | FY2025 output | YoY | Notes |
|---|---|---|---|
| Crude processed | 1,375.9 mmbbl | -0.2% | Processing load 84.8%; light products yield 76.4%; refining yield 94.8%; cash processing cost RMB 224.28/t |
| Gasoline | 45.317 Mt | -5.7% | High-grade gasoline prioritised |
| Kerosene / jet fuel | 18.773 Mt | +8.2% | Growth product |
| Diesel | 52.687 Mt | -3.2% | Structural decline (LNG trucks, EVs) |
| Ethylene | 9.303 Mt | +7.5% | Capacity >10 Mt/yr after Jilin and Guangxi start-ups |
| Synthetic resin | 13.908 Mt | +4.6% | Polyethylene external sales 7.313 Mt (+14.7%); polypropylene 3.092 Mt (-18.3%) |
| Synthetic fibre materials and polymers | 1.353 Mt | +16.1% | — |
| Synthetic rubber | 1.105 Mt | +9.7% | Solution-polymerised SBR targeted |
| Urea | 2.310 Mt | -21.2% | Being de-emphasised |
| Lubricants | 1.700 Mt sold | -10.1% | Realised price RMB 9,069/t (+8.9%) — "Kunlun" lubricant brand |
| Chemical new materials | 3.327 Mt | +62.7% | 1H2026 2.69 Mt (+61.4%); metallocene polyolefins, EVA, high-end polyolefins |
| Total chemical products | 40.027 Mt | +2.7% | — |
| Specialty products | — | — | Paraffin, bonded marine fuel oil and special asphalt hold No.1 domestic market share |
Sources: [AR25], [IR26H1].
Major projects: Jilin Petrochemical transformation (ethylene + EVA); Guangxi Petrochemical refining-chemical integration (ethylene); Dushanzi Tarim 1.2 Mt/yr Phase II ethylene; Fushun ethylene upgrade; Blue Ocean New Material high-end polyolefins and ethane/light hydrocarbon utilisation; Lanzhou ethylene upgrade; Dalian refining-chemical integration (Xizhong Island) [AR25].
Marketing
| Offering | Metric | Notes |
|---|---|---|
| Fuel retail network | 22,127 stations end-2025 (-1.4%); 20,482 self-operated | Throughput 8.70 t/day/station (-3.9%) |
| Domestic fuel sales | 118.658 Mt (-0.4%); retail market share 32.4% (+1.1pp) | Gasoline 48.241 Mt; kerosene 11.123 Mt; diesel 59.294 Mt |
| Total fuel sales incl. trading | 160.811 Mt (+1.1%) | Kerosene +18.3% |
| Convenience stores (non-oil) | 19,814 stores | Brand "uSmile" (昆仑好客) — brand name not re-verified in FY2025 filing |
| Integrated energy stations | 1,525 newly built FY2025; 592 in 1H2026 | "Oil, gas, hydrogen, power and non-oil" concept |
| LNG truck refuelling | 450 stations commissioned FY2025; 208 in 1H2026 | Profit growth driver |
| EV charging | +37,600 charging guns FY2025; +18,500 in 1H2026 | — |
| International trading | Via PetroChina International (net profit RMB 11.8bn FY2025) | Hubs in Hong Kong, Singapore, London, Houston (hub list not re-verified) |
Realised prices FY2025: gasoline RMB 7,541/t (-7.5%); diesel RMB 6,152/t (-7.2%); kerosene RMB 5,047/t (-9.1%) [AR25].
Natural Gas Sales
| Offering | Metric | Notes |
|---|---|---|
| Total gas sold | 314.713 bcm FY2025 (+7.0%) | Avg external price RMB 2,291 per '000 m3 (+0.2%) |
| Domestic gas sold | 247.528 bcm (+5.6%) | Focus on eastern/southern high-value markets, gas-fired power, industrial direct sales |
| 1H2026 gas sold | 161.22 bcm (+3.9%) | — |
| LNG terminals | Jiangsu (Rudong) expansion; Fujian terminal and outgoing pipeline under construction | Capex 2026E RMB 6.0bn |
| City gas | Through Kunlun Energy (HK:0135) and other subsidiaries | — |
Sources: [AR25], [IR26H1].
Financial Narrative
Income statement
Sources: FY2021–FY2023 revenue, profit from operations, PBT and profit for year from [AR23] five-year summary (as originally reported); FY2023 restated in [AR25] to revenue RMB 3,012,812m and attributable profit RMB 161,416m; FY2024–FY2025 from [AR25]. Gross profit FY2021–FY2023 per CAS-based aggregator series (Börse Express, RMB bn rounded) and consistent with [AR25] for FY2024–FY2025. FY2021 and FY2022 attributable profit and EPS from prior annual reports (FY2022 corroborated by Reuters: RMB 148.7bn). DPS: FY2021 0.23 implied by company-stated 14th FYP cumulative DPS of RMB 2.03; FY2022 0.20 interim + 0.22 final; FY2023 0.21 interim + 0.23 final ([AR23]); FY2024 and FY2025 0.22 + 0.25 ([AR25]).
Margins and growth
Computed from 6.1. Revenue CAGR FY2021–FY2025: 2.3%. Attributable profit CAGR FY2021–FY2025: 14.3%.
Commentary. The five-year arc shows a decoupling of profit from revenue. Revenue peaked in FY2022 with the post-Ukraine oil spike and has drifted down since, but attributable profit set records in FY2023 and FY2024 and stayed near-record in FY2025 despite Brent falling 14.6% to US$68.19/bbl. Three drivers explain the margin resilience: (1) the gas chain's transformation from a loss-maker under the pre-2020 import pricing regime into a RMB 60bn profit pool; (2) cost discipline — SG&A fell 6.4% in FY2025, exploration expense fell 10.8%, lifting cost was flat at US$12.04/bbl; and (3) a lighter tax take at lower oil prices — the crude oil special gain levy collapsed from RMB 14.3bn to RMB 2.4bn in FY2025 [AR25]. Gross margin compression from 24.3% (FY2022) to 21.6% (FY2025) reflects lower oil realisations and weak chemicals. Note that CAS "gross profit" is struck before consumption tax (RMB 170.8bn in FY2025), which is booked in taxes and surcharges.
Quarterly profile (CAS)
Sources: [AR25] quarterly table; [Q126]; 2Q2026 derived as 1H2026 [IR26H1] less 1Q2026 [Q126] (mixes IFRS half-year and CAS-reported quarter; indicative only).
1H2026 highlights [IR26H1]: revenue RMB 1,527,491m (+5.3%); profit from operations RMB 139,383m (+17.6%); attributable profit RMB 103,936m (+22.0%); basic EPS RMB 0.57 (vs. 0.47); operating cash flow RMB 251,281m (+10.6%); capex RMB 75,015m; interim DPS RMB 0.26 (c.RMB 47,585m; HK$0.30047 per H share).
Balance sheet
Sources: [AR25]; FY2023 total assets and attributable equity as restated in [AR25]; FY2023 cash approximate (RMB 249bn per company-results coverage).
Commentary. The balance sheet is among the strongest of any oil major globally. Net borrowings fell 67% in FY2025 to RMB 21.4bn — effectively net cash once time deposits (RMB 35.2bn) are included. Management actively termed out debt: short-term borrowings fell RMB 74.7bn while long-term borrowings rose RMB 65.4bn, and debt maturing after five years jumped from RMB 46.0bn to RMB 124.2bn (undiscounted). Working capital flipped from negative to positive RMB 56.5bn as a result. Borrowings are 51.2% floating and 42.6% USD-denominated, creating moderate rate and FX sensitivity. The largest "debt-like" items are actually asset retirement obligations (RMB 173.5bn) and leases (RMB 125.9bn).
Cash flow
Sources: [AR23], [AR25]; FY2023 OCF as originally reported (restated RMB 456,847m); FY2023 capex RMB 275.3bn per Reuters. FY2023 dividends: interim 0.21 × 183,021m shares + final RMB 42,095m.
Commentary. Operating cash flow has run at RMB 400–460bn for three years, comfortably funding capex of c.RMB 270bn and dividends of c.RMB 86bn. Company-defined FCF of RMB 120.2bn (+15.2%) in FY2025 was the fifth consecutive year above RMB 100bn per management commentary. 2026 capex guidance is RMB 279.4bn (+3.8%), with refining/chemicals capex falling and gas sales/marketing capex rising [AR25].
Capex by segment
Source: [AR25].
Ratios
Computed from [AR25]; company-reported items quoted directly. The company's CAS "debt-to-EBITDA" of 2.12x evidently uses a broader liability definition and is not comparable with the net-debt/EBITDA computed here — note the discrepancy.
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Segment Overview
| Segment | Contents | Key products/services |
|---|---|---|
Oil, Gas and New Energy | Domestic and overseas E&P; wind/solar power; geothermal; CCUS; gas storage | Crude oil, natural gas, CBM, shale oil/gas, green power, CO2 utilisation |
Refining, Chemicals and New Materials | Refineries and petrochemical complexes | Gasoline, diesel, jet fuel, ethylene, polyolefins, synthetic rubber, fibre materials, lubricants, urea, specialty asphalt, paraffin, new materials |
Marketing | Domestic wholesale/retail fuels; non-oil retail; international trading | Service stations, convenience stores, LNG truck refuelling, EV charging/swapping, oil and product trading |
Natural Gas Sales | Gas wholesale and city-gas retail; LNG terminals | Pipeline gas, LNG, city-gas distribution (incl. Kunlun Energy) |
Head Office and Other | Corporate centre, R&D, IT | — |
Segment revenue (CNY Mn, IFRS, incl. intersegment)
| Segment revenue (CNY Mn, IFRS, incl. intersegment) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Oil, Gas and New Energy | — | 906,813 | 824,808 |
Refining, Chemicals and New Materials | — | 1,192,589 | 1,078,047 |
Marketing | — | 2,454,546 | 2,352,746 |
Natural Gas Sales | — | 592,690 | 619,503 |
Head Office and Other | — | 7,483 | 7,168 |
Intersegment elimination | — | -2,216,140 | -2,017,803 |
Group revenue | 3,011,012 | 2,937,981 | 2,864,469 |
External revenue by segment (CNY Mn, IFRS)
| External revenue by segment (CNY Mn, IFRS) | FY2024 | FY2025 |
|---|---|---|
Oil, Gas and New Energy | 154,862 | 135,029 |
Refining, Chemicals and New Materials | 344,220 | 326,429 |
Marketing | 1,878,462 | 1,822,223 |
Natural Gas Sales | 557,107 | 578,857 |
Head Office and Other | 3,330 | 1,931 |
Share of external revenue (%)
| Share of external revenue (%) | FY2024 | FY2025 |
|---|---|---|
Oil, Gas and New Energy | 5.3 | 4.7 |
Refining, Chemicals and New Materials | 11.7 | 11.4 |
Marketing | 63.9 | 63.6 |
Natural Gas Sales | 19.0 | 20.2 |
Segment profit from operations (CNY Mn, IFRS)
| Segment profit from operations (CNY Mn, IFRS) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Oil, Gas and New Energy | — | 159,745 | 136,065 |
Refining, Chemicals and New Materials | — | 21,386 | 24,247 |
of which Refining | — | 18,230 | 21,704 |
of which Chemicals | — | 3,156 | 2,543 |
Marketing | — | 16,494 | 17,547 |
Natural Gas Sales | 43,000 | 54,010 | 60,802 |
Head Office and Other | — | -17,681 | -19,420 |
Group profit from operations | 235,466 | 233,954 | 219,241 |
Segment Metric Details
| Segment metric (FY2025) | Op. margin on gross segment revenue (%) | Revenue YoY (%) | Op. profit YoY (%) | Share of segment op. profit excl. HQ (%) |
|---|---|---|---|---|
Oil, Gas and New Energy | 16.5 | -9.0 | -14.8 | 57.0 |
Refining, Chemicals and New Materials | 2.2 | -9.6 | 13.4 | 10.2 |
Marketing | 0.7 | -4.1 | 6.4 | 7.4 |
Natural Gas Sales | 9.8 | 4.5 | 12.6 | 25.5 |
1H2026 segment profit from operations (CNY Bn)
| 1H2026 segment profit from operations (CNY Bn) | Value |
|---|---|
Oil, Gas and New Energy | 100.45 |
Refining, Chemicals and New Materials | 14.53 |
Marketing | 11.36 |
Natural Gas Sales | 24.09 |
Group profit from operations (CNY Mn) | 139383 (+17.6% YoY) |
Group Entities
| Entity | PetroChina stake (%) | Total assets (CNY Mn) | Net profit FY2025 (CNY Mn) |
|---|---|---|---|
Daqing Oilfield Company Limited | 100.00 | 386,555 | 3,695 |
PetroChina International Co., Ltd. (trading) | 100.00 | 303,747 | 11,801 |
PetroChina Hong Kong Company Limited | 100.00 | 172,423 | 9,638 |
CNPC Exploration and Development Company Limited | 50.00 | 224,957 | 9,043 |
PetroChina International Investment Company Limited | 100.00 | 106,841 | -5,065 |
Guangdong Petrochemical Company Limited | 90.00 | 65,289 | 491 |
PetroChina Taihu (Beijing) Investment Co., Ltd. | 100.00 | 57,454 | 291 |
PetroChina Sichuan Petrochemical Co., Ltd. | 90.00 | 27,130 | 1,438 |
China Oil & Gas Pipeline Network Corporation (associate) | 29.90 | 947,231 | 35,063 |
China Petroleum Finance Co., Ltd. (associate) | 32.00 | 534,296 | 5,611 |
State Grid Xin Yuan Holdings Co., Ltd. (associate) | 14.79 | 258,046 | 3,587 |
Trans-Asia Gas Pipeline Co., Ltd. | 50.00 | 45,934 | 1,152 |
Mangistau Investment B.V. | 50.00 | 12,267 | 820 |
China Marine Bunker (PetroChina) Co., Ltd. | 50.00 | 10,754 | 55 |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (CNY Mn, IFRS) | 2,614,349 | 3,239,167 | 3,011,012 | 2,937,981 | 2,864,469 |
Gross profit (CNY Mn, CAS revenue less cost of sales) | 613,060 | 788,050 | 710,430 | 662,758 | 618,348 |
Profit from operations (CNY Mn, IFRS) | 161,153 | 216,660 | 235,466 | 233,954 | 219,241 |
EBITDA proxy (profit from operations + DD&A, CNY Mn) | — | — | — | 477,163 | 467,366 |
Depreciation, depletion and amortisation (CNY Mn) | — | — | — | 243,209 | 248,125 |
Profit before income tax (CNY Mn) | 158,203 | 213,277 | 237,462 | 241,508 | 226,165 |
Income tax expense (CNY Mn) | — | — | — | 57,753 | 54,144 |
Profit for the year (CNY Mn) | 114,607 | 163,348 | 180,293 | 183,755 | 172,021 |
Profit attributable to owners (CNY Mn) | 92,170 | 148,740 | 161,144 | 164,684 | 157,318 |
Basic EPS (MYR Bn) | 0.50 | 0.81 | 0.88 | 0.90 | 0.86 |
Diluted EPS (MYR Bn) | 0.50 | 0.81 | 0.88 | 0.90 | 0.86 |
Dividend per share (MYR Bn) | 0.23 | 0.42 | 0.44 | 0.47 | 0.47 |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 23.4 | 24.3 | 23.6 | 22.6 | 21.6 |
Operating margin (%) | 6.2 | 6.7 | 7.8 | 8.0 | 7.7 |
EBITDA margin (%) | — | — | — | 16.2 | 16.3 |
Net margin, attributable (%) | 3.5 | 4.6 | 5.4 | 5.6 | 5.5 |
Revenue growth YoY (%) | — | 23.9 | -7.0 | -2.4 | -2.5 |
Attributable profit growth YoY (%) | — | 61.4 | 8.3 | 2.0 | -4.5 |
Income Statement
| Metric | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 |
|---|---|---|---|---|---|---|
Revenue (CNY Mn) | 753,108 | 696,991 | 719,157 | 695,213 | 736,380 | 791,111 |
Net profit attributable (CNY Mn) | 46,807 | 37,186 | 42,286 | 31,023 | 48,333 | 55,603 |
Operating cash flow (CNY Mn) | 139,436 | 87,627 | 116,037 | 69,410 | — | — |
Balance Sheet and Margin Analysis (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Total assets (CNY Mn) | 2,758,975 | 2,752,751 | 2,827,777 |
Total liabilities (CNY Mn) | — | 1,043,128 | 1,028,453 |
Equity attributable to owners (CNY Mn) | 1,451,086 | 1,515,132 | 1,585,837 |
Total equity incl. NCI (CNY Mn) | — | 1,709,623 | 1,799,324 |
Cash and cash equivalents (CNY Mn) | 249,000 | 172,477 | 206,162 |
Short-term borrowings incl. current portion of LT (CNY Mn) | — | 138,783 | 64,101 |
Long-term borrowings (CNY Mn) | — | 98,072 | 163,462 |
Total borrowings (CNY Mn) | — | 236,855 | 227,563 |
Net borrowings (CNY Mn) | — | 64,378 | 21,401 |
Lease liabilities, total (CNY Mn) | — | 118,619 | 125,887 |
Asset retirement obligations (CNY Mn) | — | 162,019 | 173,503 |
Goodwill, CAS (CNY Mn) | — | 7,436 | 7,263 |
Intangible assets, CAS (CNY Mn) | — | 92,790 | 93,149 |
Net current assets / working capital (CNY Mn) | — | -46,473 | 56,497 |
Gearing: borrowings / (borrowings + total equity) (%) | — | 12.2 | 11.2 |
Asset-liability ratio (%) | — | 37.89 | 36.37 |
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View Subscription PlansCash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (CNY Mn) | 341,469 | 393,768 | 456,596 | 406,532 | 412,510 |
Capital expenditure (CNY Mn) | — | — | 275,300 | 275,849 | 269,089 |
Free cash flow, company definition (CNY Mn) | — | — | — | 104,350 | 120,189 |
Simple FCF: OCF less capex (CNY Mn) | — | — | 181,296 | 130,683 | 143,421 |
Net cash used in investing activities (CNY Mn) | — | — | — | -307,347 | -265,705 |
Net cash used in financing activities (CNY Mn) | — | — | — | -178,876 | -111,335 |
Dividends declared for the year (CNY Mn) | — | — | 80,530 | 86,020 | 86,020 |
Share buybacks (CNY Mn) | 0 | 0 | 0 | 0 | 0 |
Capex by segment (CNY Mn)
| Capex by segment (CNY Mn) | FY2024 | FY2025 | FY2026E |
|---|---|---|---|
Oil, Gas and New Energy | 227,633 | 205,094 | 220,800 |
Refining, Chemicals and New Materials | 33,489 | 47,772 | 42,700 |
Marketing | 7,188 | 8,216 | 8,500 |
Natural Gas Sales | 4,300 | 4,987 | 6,000 |
Head Office and Other | 3,239 | 3,020 | 1,400 |
Total | 275,849 | 269,089 | 279,400 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2024 | FY2025 |
|---|---|---|
ROE, attributable profit / average attributable equity (%) | 11.1 | 10.1 |
Company-reported return on net assets, IFRS (%) | 10.9 | 9.9 |
ROA, profit for year / average total assets (%) | 6.7 | 6.2 |
ROIC, NOPAT / (total equity + borrowings − cash) (%) | 10.0 | 9.2 |
Current ratio (x) | 0.93 | 1.10 |
Total borrowings / total equity (%) | 13.9 | 12.6 |
Net debt / EBITDA proxy (x) | 0.13 | 0.05 |
Company-reported debt-to-EBITDA (CAS definition) (x) | 2.08 | 2.12 |
Interest coverage, profit from operations / interest expense (x) | 11.3 | 12.5 |
Company-reported EBITDA interest coverage (x) | 46.29 | 54.47 |
Asset turnover, revenue / average assets (x) | 1.07 | 1.03 |
Days inventory outstanding (days) | 27.0 | 24.5 |
Days sales outstanding (days) | 8.9 | 9.9 |
Days payables outstanding, trade payables (days) | 25.7 | 27.0 |
Cash conversion cycle (days) | 10.2 | 7.4 |
Dividend payout ratio (%) | 52.2 | 54.7 |
Effective tax rate (%) | 23.9 | 23.9 |
Geographic Metric Details
| Geographic metric | FY2025 |
|---|---|
Overseas revenue (CNY Mn) | 970,233 |
Mainland China revenue, derived (CNY Mn) | 1,894,236 |
Overseas share of group revenue (%) | 33.9 |
Overseas profit before tax (CNY Mn) | 32,613 |
Overseas share of group PBT (%) | 14.4 |
Overseas production metric
| Overseas production metric | FY2024 | FY2025 |
|---|---|---|
Overseas crude output (mmbbl) | 164.8 | 167.7 |
Overseas marketable gas output (bcf) | 177.0 | 162.0 |
Overseas oil and gas equivalent (mmboe) | 194.2 | 194.7 |
Overseas share of group boe (%) | 10.8 | 10.6 |
Price Datapoint Details
| Price datapoint (H share, HKEX 857) | Value | Source |
|---|---|---|
12-month range (snapshot c. late 2025) | HK$5.07 – HK$8.79 | [MKT] TipRanks |
YTD change to 29 Apr 2026 | +42.96% (vs. Hang Seng +1.88%) | [Q126] Reuters |
52-week high (Frankfurt listing) | €1.31 on 3 May 2026 | [MKT] Börse Express |
Close 9 Jul 2026 | HK$9.04 | [MKT] aktien.guide |
Close 14 Aug 2026 | HK$9.44 | [MKT] Investing.com |
Frankfurt 2 Sep 2026 | €1.098 (≈HK$10.0) | [MKT] Börse Express |
Beta | 0.57–0.71 (aggregator range) | [MKT] |
Valuation Snapshot
| Multiple | Value | Basis |
|---|---|---|
P/E (TTM) | 8.5x | TTM EPS RMB 0.96 (FY2025 0.86 − 1H2025 0.47 + 1H2026 0.57) |
P/E (FY2025) | 9.5x | EPS RMB 0.86; Börse Express shows P/E 10.0 |
P/B | 0.94x | BVPS RMB 8.66 at end-2025 |
EV/EBITDA (FY2025) | 3.7x | EV ≈ market cap RMB 1,495bn + net debt 21bn + NCI 213bn; EBITDA proxy RMB 467bn |
EV/Sales (FY2025) | 0.60x | Revenue RMB 2,864bn |
Trailing dividend yield | 6.2% | FY2025 final 0.25 + 2026 interim 0.26 |
Capital Markets
| Indicator | Value | Source |
|---|---|---|
Rating distribution (H share) | 8 Buy / 4 Hold / 5 Sell | [MKT] Parqet |
Recent price targets | Buy HK$13.50 (4 May 2026); Buy HK$12.00 (30 Mar 2026); Buy HK$11.60 (24 Mar 2026); Buy HK$11.50 (13 Mar 2026); Sell HK$4.80 (5 Aug 2026) | [MKT] Investing.com |
Consensus revenue FY2026E / FY2027E | RMB 3,177.8bn / RMB 3,016.9bn | [MKT] Börse Express |
Consensus DPS FY2026E | RMB 0.53 (FactSet, per Parqet) | [MKT] |
Dividend metric
| Dividend metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
DPS total (MYR Bn) | 0.23 | 0.42 | 0.44 | 0.47 | 0.47 |
Interim DPS (MYR Bn) | — | 0.20 | 0.21 | 0.22 | 0.22 |
Final DPS (MYR Bn) | — | 0.22 | 0.23 | 0.25 | 0.25 |
Payout ratio (%) | 46 | 52 | 50 | 52 | 55 |
Debt Maturity Profile
| Maturity bucket (CNY Mn) | FY2024 | FY2025 |
|---|---|---|
Within 1 year | 143,250 | 67,436 |
1–2 years | 30,656 | 15,602 |
2–5 years | 42,314 | 39,947 |
After 5 years | 46,005 | 124,204 |
Total | 262,225 | 247,189 |
Analyst Conclusions
Management guidance
For 2026, management guides to 941.3 mmbbl crude, 5,470.5 bcf gas, 1,853.4 mmboe total, 1,377.1 mmbbl crude processed and RMB 279.4bn capex [AR25]. In the interim results, management expected continued slow global growth and volatile oil prices in 2H2026, and committed to prioritising profitability while investing in oil and gas resources, new energy, new materials and environmental businesses [IR26H1].
Consensus expectations
Consensus revenue of RMB 3,177.8bn for FY2026E (+10.9%) falling to RMB 3,016.9bn in FY2027E implies the market views 2026 as a geopolitically inflated peak year [MKT]. FactSet-sourced DPS consensus of RMB 0.53 for FY2026 implies a final DPS of c.RMB 0.27 after the RMB 0.26 interim.
Bull case
-
Earnings floor has risen: even at US$64/bbl realised crude (FY2025), the company earned RMB 157bn; with 1H2026 at RMB 104bn, FY2026 could exceed the FY2024 record of RMB 164.7bn, supporting DPS growth beyond RMB 0.53.
-
Gas-chain compounding: gas segment profit has grown from c.RMB 13bn (FY2022) to RMB 60.8bn (FY2025); storage acquisition and LNG terminal build-out lift peak-shaving economics.
-
Valuation: c.8.5x TTM P/E, <1x book and 3.7x EV/EBITDA with near-zero net debt and a 6%+ yield leave room for continued re-rating under China's "valuation system with Chinese characteristics" push for SOEs.
Bear case
-
Peak-cycle earnings: 1H2026 profits reflect an oil price spike from the Iran war; a durable ceasefire could return Brent toward FY2025 levels (US$68), reversing the upstream gain while gas import costs normalise slowly.
-
Structural downstream erosion: domestic gasoline sales -2.3%, throughput per station -3.9%, and an in-house forecast of falling Chinese oil demand in 2026 point to a shrinking legacy profit pool.
-
Capital-allocation and governance risk: related-party deals with CNPC (e.g., RMB 40bn gas storage, RMB 65bn deposit caps at CNPC Finance) and policy-driven capex (energy security) may dilute returns; ROE has already slipped from 11.1% to 10.1%.
Catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Expected timing | What to watch |
|---|---|---|
| 3Q2026 results | Late Oct 2026 | Sustainability of 2Q profit run-rate (c.RMB 55bn) |
| Interim dividend payment | 26 Oct 2026 | RMB 0.26 per share |
| Middle East normalisation | Ongoing | Iraqi output recovery (>90% reported Sep 2026) |
| LNG Canada stake decision | 2H2026–2027 | Price and Phase 2 FID |
| Winter gas season | Nov 2026 – Feb 2027 | Gas segment margin; storage contribution |
| FY2026 results and final DPS | Late Mar 2027 | Payout ratio vs. 55%; 2027 capex and 15th FYP targets |
| Refinery rationalisation | 2026–2027 | Confirmation of reported 19-unit closures |
| Credit ratings | Any time | Sovereign-linked actions |
Analyst verdict
PetroChina enters the second year of China's 15th Five-Year Plan in the strongest financial condition in its history. The FY2025 numbers demonstrated that the earnings base is no longer hostage to the oil price alone: a 14% fall in realised crude cost the upstream segment RMB 23.7bn, yet attributable profit fell only 4.5% because the gas chain, refining and marketing absorbed much of the hit. The balance sheet — net borrowings of just RMB 21.4bn, gearing of 11.2%, and debt pushed out beyond five years — gives management unusual flexibility, while a payout ratio near 55% and a rising interim dividend (RMB 0.26 in 2026) make the shares one of the highest-quality yield vehicles in Asian energy.
The 1H2026 record (RMB 103.9bn) must, however, be read in context. It was flattered by a war-driven oil spike and came alongside a 14.2% fall in overseas crude output and stressed LNG supply. The cleaner signal is structural: new-materials output growing c.60% a year, gas profits compounding, and a disciplined retreat from sub-scale refining. Against that, domestic fuel demand is in secular decline, chemicals are in a cyclical trough, and the company's capital allocation will always balance minority returns against national energy-security mandates.
The principal risks are a rapid normalisation of oil prices and policy interventions in gas or fuel pricing. Investors should anchor on dividends and gas-chain growth rather than the 2026 oil windfall, and should treat FY2026 as a likely cyclical high in upstream earnings. Verdict: constructive, with quality-yield characteristics and identifiable, mostly macro-driven downside risks.
Appendix A — Operating KPI history
| Operating KPI | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
| Crude oil output (mmbbl) | 906.2 | 937.1 | 941.8 | 948.0 |
| Marketable gas output (bcf) | — | 4,932.4 | 5,133.8 | 5,363.2 |
| Oil and gas equivalent (mmboe) | — | — | 1,797.4 | 1,841.9 |
| Crude processed (mmbbl) | — | 1,398.8 | 1,378.4 | 1,375.9 |
| Natural gas sold (bcm) | — | — | 294.225 | 314.713 |
| Total fuel sales (Mt) | — | — | 159.000 | 160.811 |
| Service stations (count) | — | — | 22,441 | 22,127 |
| Realised crude price (USD per bbl) | — | — | 74.70 | 64.11 |
Sources: [AR25]; FY2022–FY2023 per Reuters coverage of FY2023 results.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Tenure / notes | Background |
|---|---|---|---|
Dai Houliang | Chairman; Chair, Nomination Committee | PetroChina Chairman since 2020; re-elected Jun 2026 | — |
Zhou Xinhuai | Vice Chairman, Non-executive Director | Vice Chairman since 19 Dec 2025; age 54 | CNPC Director, General Manager and Deputy Party Secretary; formerly CEO of CNOOC Limited and chief geologist at CNOOC Donghai |
Duan Liangwei | Non-executive Director | Long-serving director; former PetroChina President (approx. 2019–2021) | CNPC senior executive |
Zhou Song | Non-executive Director | Re-elected Jun 2026 | CNPC executive; member of Audit and Risk Management Committee (pre-June 2026) |
Ren Lixin | Executive Director; President | President since 30 Sep 2025; age 58 at appointment | CNPC Party Leadership Group member, Deputy GM and Chief Safety Officer; previously GM of Refining & Chemical Branch; Senior VP since Aug 2021 |
Zhang Daowei | Executive Director | — | Senior management; Investment & Development Committee |
Song Dayong | Executive Director | — | Senior management; Investment & Development Committee |
He Jinglin (Ho Kevin King Lun) | Independent NED | — | Audit & Risk; Nomination |
Yan Yan (Yan, Andrew Y) | Independent NED | — | Audit & Risk; Nomination |
Liu Xiaolei | Independent NED; Chair, Audit and Risk Management Committee | — | Only female director |
Zhang Yuxin | Independent NED; Chair, Examination and Remuneration Committee | — | — |
Wu Jianing (Ng Kar Ling Johnny) | Independent NED | New, Jun 2026 | Examination and Remuneration Committee |
(Employee Director) | Employee Director | Board described as 14 members incl. one Employee Director | — |
(One further NED) | Non-executive Director | — | — |
Executive Leadership Team
| Name | Title | Notes |
|---|---|---|
Ren Lixin | President | See above |
He Yongli | GM, PetroChina Natural Gas Marketing Company (from Jan 2026); executive director of Kunlun Energy | [NEWS] Kunlun Energy announcement, Jan 2026 |
Major Shareholders
| Rank | Holder | Type | Shares | % of total |
|---|---|---|---|---|
| 1 | CNPC | State-owned legal person | 150,418,754,093 A | 82.19 |
| 2 | HKSCC Nominees Ltd (H-share nominee) | Overseas legal person | 20,939,506,190 H | 11.44 |
| 3 | China Petrochemical Corporation (Sinopec Group) | State-owned | 1,830,210,000 | 1.00 |
| 4 | China Securities Finance Corp. | State-owned | 1,020,165,128 | 0.56 |
| 5 | Hong Kong Securities Clearing Co. (Northbound A-share nominee) | Overseas legal person | 589,098,084 | 0.32 |
| 6 | China Mobile Communications Group | State-owned | 541,202,377 | 0.30 |
| 7 | Guoxin Hongsheng Investment (Beijing) | State-owned | 363,319,081 | 0.20 |
| 8 | Guofeng Xinghua Honghu Zhiyuan Private Fund II | Other | 217,213,578 | 0.12 |
| 9 | ICBC – SSE 50 ETF | State-owned | 209,715,964 | 0.11 |
| 10 | Central Huijin Asset Management | State-owned | 201,695,000 | 0.11 |
Competitive Landscape
Competitors by Segment
| Segment | Named competitors |
|---|---|
Domestic upstream | CNOOC Ltd (offshore), Sinopec (Shengli, Puguang, Fuling shale), Yanchang Petroleum (Shaanxi) |
Global upstream / integrated | ExxonMobil, Shell, Chevron, TotalEnergies, BP, Saudi Aramco, Rosneft, Petrobras |
Refining and chemicals | Sinopec (largest refiner), Rongsheng/Zhejiang Petrochemical (ZPC, 800 kb/d), Hengli Petrochemical, Shenghong, Sinochem, CNOOC refining, Shandong independent ("teapot") refiners |
Fuel retail | Sinopec (largest network), Shell China, BP China JVs, independents; structural competition from EVs and LNG trucks |
Natural gas wholesale/city gas | Sinopec, CNOOC (LNG importers); ENN Energy, China Resources Gas, Towngas China, Beijing Enterprises (city gas) |
Key Competitors
| Company | Fiscal year | Revenue | Net income attributable | Net income YoY | Notes |
|---|---|---|---|---|---|
PetroChina | FY2025 | RMB 2,864.5bn | RMB 157.3bn | -4.5% | Op. margin 7.7%; R&D 1.0% of revenue |
Sinopec Corp | FY2025 | — | RMB 31.8bn | -37% | World's largest refiner by capacity; 1H2026 revenue RMB 1,436.6bn, net RMB 26.6bn (+11.9%) |
CNOOC Ltd | FY2025 | — | RMB 122.08bn | -11.5% | Pure upstream, offshore |
ExxonMobil | FY2024 | US$339bn approx. | US$33.7bn approx. | — | From memory of 10-K; verify |
Shell | FY2024 | US$284bn approx. | US$16.1bn approx. | — | From memory of annual report; verify |
