---
title: "PetroChina Q1 Net Profit Rises 2% YoY to RMB 48.3 Billion, Setting a Quarterly Record | Financial Report Insights"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284611301.md"
description: "In the first quarter of 2026, PetroChina's net profit attributable to shareholders reached RMB 48.333 billion, a year-on-year increase of 1.9%, marking its best quarterly performance in history. Strong performance in downstream segments, including a 39.7% increase in natural gas sales profit and a 57.7% rise in refining profit, effectively offset a 12.5% decline in upstream profits caused by the divergence in oil prices. Power generation from wind and solar surged by 38.5%, indicating rapid expansion in new energy businesses"
datetime: "2026-04-29T16:13:13.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284611301.md)
  - [en](https://longbridge.com/en/news/284611301.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284611301.md)
---

# PetroChina Q1 Net Profit Rises 2% YoY to RMB 48.3 Billion, Setting a Quarterly Record | Financial Report Insights

In the first quarter of 2026, PETROCHINA reported operating revenue of RMB 736.383 billion, a slight year-on-year decrease of 2.2%. Net profit attributable to shareholders was RMB 48.333 billion, up 1.9% year-on-year, **setting the company's best quarterly performance in history**. Basic earnings per share amounted to RMB 0.264, also representing a 1.9% year-on-year increase.

Behind the profit growth were structural highlights in business operations. **Operating profit from natural gas sales surged 39.7% year-on-year, operating profit from refining grew by 57.7%, and both the chemical and sales segments showed improvement.** Non-recurring net profit stood at RMB 49.579 billion, a 5.0% year-on-year increase, indicating continuous improvement in the company's core operational quality.

Although upstream production volume increased by 0.7% in the first quarter, the operating profit of the oil, gas, and new energy business amounted to RMB 41.045 billion, a year-on-year decrease of RMB 5.843 billion, or approximately 12.5%. This decline was primarily due to the lagged impact of crude oil sales volume and price drops relative to international market trends.

The operating profit of the sales business was RMB 6.470 billion, a 28.3% year-on-year increase, mainly driven by higher sales volume and profit margins in international trade. The combined operating profit of refining, chemicals, and new materials businesses grew by 54%. Profit from the natural gas business rose from RMB 13.5 billion in the same period last year to RMB 18.867 billion, an increase of approximately 39.7%. The company stated that domestic refined oil consumption saw a slight increase in the first quarter, while natural gas demand remained stable.

On the asset side, total assets grew by 6.1% from the beginning of the year to RMB 3.0385 trillion. Net assets attributable to shareholders slightly increased to RMB 1.6245 trillion. However, net cash flow from operating activities was RMB 8.447 billion, a significant year-on-year drop of 39.4%, mainly dragged down by changes in working capital, which requires continued monitoring.

## **Year-on-Year Decline in Oil and Gas Segment Profits**

In the first quarter, international crude oil prices remained relatively high, with the average price of Brent crude oil futures at USD 78.38 per barrel, a 4.5% year-on-year increase. However, PETROCHINA's average realized crude oil price was only USD 64.08 per barrel, an 8.5% year-on-year decrease, showing a clear divergence from the benchmark price. This discrepancy may be related to the company's hedging strategies and crude oil sales structure.

**In terms of production, the company maintained a tone of "stability."** In the first quarter, oil and gas equivalent production reached 470.2 million barrels, a 0.7% year-on-year increase, with domestic production at 423.3 million barrels, up 1.2% year-on-year. Structurally, domestic crude oil production remained at 197.9 million barrels, flat compared to the same period last year; marketable natural gas production was 1,352.6 billion cubic feet, a 2.4% year-on-year increase, with natural gas remaining the main source of incremental growth. Overseas crude oil production was 39.9 million barrels, a 5.6% year-on-year decrease, dragging down the overall overseas oil and gas equivalent production by 4.2%.

Impacted by the dual shock of falling prices and reduced crude oil sales volume, the operating profit of the oil, gas, and new energy business was RMB 41.045 billion, a year-on-year decrease of RMB 5.843 billion, or approximately 12.5%, making it the only segment in the group to experience a profit decline. The unit operating cost for oil and gas was USD 9.82 per barrel, a slight year-on-year increase of only 0.6%, indicating overall stable cost control.

## **New Energy Business Becomes a Highlight: Wind and Solar Power Generation Surges 38.5%**

**The new energy business emerged as one of the most striking growth segments in the first-quarter report.** During the reporting period, the company's wind and solar power generation reached 2.33 billion kWh, a substantial 38.5% increase from 1.68 billion kWh in the same period last year. The rapid scale expansion has become an important strategic supplement to traditional oil and gas businesses.

The company continues to advance the acquisition, conversion, and project construction of new energy indicators. While ensuring stable and increased production in its core oil and gas business, it is accelerating its low-carbon transformation layout. Although the scale of the new energy business is currently auxiliary compared to traditional oil and gas, the rapid growth rate indicates that capital investment is forming substantial output, and its contribution to overall value creation is expected to gradually emerge in the future.

## **Refining, Chemicals, and New Materials Become the "Surprise Performers"**

**The refining, chemicals, and new materials segment became the biggest profit highlight of the quarter.** In the first quarter, the company processed 343 million barrels of crude oil, a 1.7% year-on-year increase, with facilities maintaining stable operation at high loads.

In terms of chemical products, ethylene production reached 2.755 million tons, a surge of 21.4% year-on-year; synthetic resin production was 3.981 million tons, up 17.2% year-on-year; synthetic rubber increased by 18.8%; and new materials production reached 1.228 million tons, a sharp 53.5% year-on-year increase. The capacity release effect of transformation and upgrade projects, such as the ethane-to-ethylene project at Dushanzi Petrochemical, was significant. Urea production decreased by 32.5% due to market structure adjustments.

On the profitability front, the refining business achieved an operating profit of RMB 7.176 billion, an increase of RMB 2.625 billion year-on-year, or 57.7%, primarily due to expanded refining margins. The operating profit of the chemical business was RMB 1.107 billion, a year-on-year increase of RMB 270 million. The combined operating profit of the overall refining, chemical, and new materials businesses totaled RMB 8.283 billion, becoming a key force in compensating for the upstream profit gap. The company continues to promote the concept of "molecular refining" and optimize its high-value-added product structure, with results gradually being realized.

## **Natural Gas Sales Profit Surges 39.7%**

The natural gas sales business performed as the most outstanding segment of the group this quarter. In the first quarter, the company sold 93.891 billion cubic meters of natural gas, a significant 6.9% year-on-year increase; domestic sales were 73.812 billion cubic meters, up 3.5% year-on-year. The rapid growth in sales volume, coupled with a decrease in the procurement cost of imported natural gas, resulted in an operating profit of RMB 18.867 billion for the natural gas sales business, a substantial year-on-year increase of RMB 5.359 billion, or approximately 39.7%.

**Behind the profit leap lies important policy support.** In February 2026, the Ministry of Finance and two other ministries issued preferential import tax policies for the exploration, development, and utilization of energy resources during the "15th Five-Year Plan" period. For qualified imported natural gas, a certain proportion of value-added tax (VAT) at the import stage will be refunded. Specifically, the refund ratio for imported natural gas under long-term trade contracts signed before the end of 2014 is as high as 70%, while for other imported natural gas, 80% of the inversion ratio is refunded. This policy, effective from January 1, 2026, until the end of 2030, will provide long-term benefits to the company's cost control and profitability in its imported natural gas business.

## **Refined Oil Sales Increase 4.8%, Kerosene Leads with a 22.9% Rise**

The sales business also recorded considerable improvement. In the first quarter, the total sales volume of the three major refined oil products—gasoline, kerosene, and diesel—was 38.533 million tons, a 4.8% year-on-year increase; domestic sales were 28.018 million tons, up 1.8% year-on-year. **Among these, kerosene sales showed the most prominent growth trend, with total sales increasing by 22.9% year-on-year and domestic kerosene sales rising by 5.4% year-on-year, reflecting the continuous recovery of domestic air travel demand.**

The operating profit of the sales business was RMB 6.470 billion, a year-on-year increase of RMB 1.427 billion, or approximately 28.3%, mainly benefiting from increased domestic refined oil sales and improved gross margins in international trade. By the end of the quarter, the company operated 22,050 gas stations and 19,880 convenience stores, maintaining a stable terminal network scale.

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