PetroChina Company (857) Q2 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 rose 5.0% year-over-year to RMB1,553,869 million, with profit attributable to owners up 3.9% to RMB88,611 million and basic EPS at RMB0.48.

• All business segments were profitable, achieving record-high operating profitability and maintaining a healthy financial position.

• Interim dividend of RMB0.22 per share declared, totaling approximately RMB40,265 million, to be paid in September and October 2024.

• Maintained disciplined, targeted, and cost-effective investment, with 1H 2024 capex at RMB78.94 billion, 85.4% allocated to oil, gas, and new energies.

• Continued progress in green and low-carbon transition, including increased wind and solar capacity and signing the Oil and Gas Decarbonization Charter.

Financial highlights

• Net profit attributable to owners was RMB88,611 million, up 3.9% year-over-year; net profit for the period was RMB99,610 million, up 5.3%.

• Net cash flows from operating activities were RMB217,329 million, down 2.0% year-over-year.

• Total assets increased 0.6% to RMB2,768,297 million; equity attributable to owners rose 3.0% to RMB1,489,904 million.

• EBITDA reached RMB256,461 million, up from RMB246,938 million in H1 2023.

• Interim dividend per share reached RMB0.22, a record high for the third consecutive year, with a payout ratio of 45.4%.

Outlook and guidance

• The company expects moderate global economic growth and continued recovery in China for H2 2024, with high and volatile international oil prices and rapid growth in domestic natural gas demand.

• Plans include focusing on efficient exploration, increasing reserves, optimizing production, expanding new energy, and accelerating low-carbon projects.

• Capital expenditures for 2024 are estimated at RMB258,000 million, with a focus on oil, gas, and new energy.