UBS released a research report stating that PETROCHINA's (00857) net profit last year was 1.573 billion yuan, a year-on-year decrease of 4.5%. The decline in profit was slightly smaller than the drop in oil prices, which aligned with the bank's expectations. The company's net profit for the fourth quarter of last year fell 27% quarter-on-quarter to 310 billion yuan, which the bank attributes primarily to the sequential decline in oil prices and significant asset impairment losses during the period. Based on recent conflicts involving Iran, UBS has raised its average Brent crude oil price forecasts for 2026 and 2027 from $72 and $70 per barrel to $86 and $80 per barrel, respectively. Consequently, the bank has increased its profit forecasts for PETROCHINA for the years 2026 to 2028 by 9% to 19%. This revision does not yet account for the potential significant weakening of refined oil product price adjustments. UBS has raised its target price for the stock from HK$12.6 to HK$14.2 and maintains a "Buy" rating.