By Kimberley Kao

State-controlled PetroChina reported higher profit despite lower revenue, thanks to better expense control and higher natural-gas sales, rounding out earnings for China's big three energy companies as they flagged slower demand for oil products and weaker crude prices in the world's second-largest economy.

PetroChina, the listed arm of state-owned China National Petroleum Corp., said Tuesday that its net profit rose 2.3% from a year earlier to 46.81 billion yuan, equivalent to $6.42 billion.

Revenue fell 7.3% to 753.11 billion yuan, which the Chinese oil major attributed primarily to weaker market demand and sales volume of refined oil products, as well as lower prices of some products.

Profit rose slightly, mainly due to the increase in output and sales volume of domestic natural gas, controlled cost and expenses, and a decline in tax expenditures, PetroChina said. Demand in the domestic natural-gas market was stable, the company said.

It said the group's average realized price for crude oil fell 7.2% to $70.00 a barrel in the first quarter.

China's other two oil giants reported profit and revenue declines for the period, reflecting the pressure faced by the Chinese oil-refining industry amid global economic concerns and softer domestic demand.

The country's biggest oil refiner, Sinopec, said its quarterly profit slumped 28%, citing a decline in oil prices and softer demand for refined oil products. The company stepped up its exploration and production efforts, which helped increase oil and gas output by 1.7% from a year earlier.

"Facing the tough external environment, the company intensified the optimization in integration and regional operations, expanded the market and sales close to market demand, strengthened cost and expense control," Sinopec said late Monday.

Chinese offshore oil-and-gas producer Cnooc also blamed a drop in revenue on weaker realized oil prices in the quarter. However, stronger oil and gas sales volumes limited the downside, it said Tuesday. In particular, revenue from natural-gas sales rose 16%.

International oil prices have been under pressure amid global economic concerns.

Earlier in April, the International Energy Agency and the Organization of the Petroleum Exporting Countries both trimmed their 2025 forecasts for oil-demand growth, as escalating global trade tensions and uncertainties amid U.S. tariff policies are expected to weigh on the world economy and crude consumption.

"With arduous trade negotiations expected to take place during the coming 90-day reprieve on tariffs and possibly beyond, oil markets are in for a bumpy ride and considerable uncertainties hang over our forecasts for this year and next," the IEA said this month.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

April 29, 2025 07:47 ET (11:47 GMT)

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