Energy giants log standout H1

China's three major State-owned oil and gas companies reported a combined net profit of nearly 215.4 billion yuan ($32.1 billion) in the first half, as the energy giants ramped up domestic exploration and capitalized on elevated global oil prices.

Buoyed by record-high domestic oil and gas output, the country's three major energy giants — China National Petroleum Corp (Petro-China), China Petroleum and Chemical Corp (Sinopec) and China National Offshore Oil Corp (CNOOC) — all delivered stellar first-half financial results, with PetroChina and CNOOC setting new bottom-line records, according to company filings.

These stellar financial performances were propelled by a favorable global market. During the January-June period, escalating geopolitical tensions in the Middle East and shifting demand expectations drove benchmark oil prices higher.

Benefiting from these tailwinds, PetroChina's net profit surged 22 percent year-on-year to 103.94 billion yuan, crossing the 100-billion-yuan threshold for a half-year period for the first time.

The company's upstream segment was the primary driver, generating an operating profit of 100.45 billion yuan, up 15.3 percent. While its domestic output hit record highs, PetroChina recorded a 14.2 percent drop in overseas crude output, largely due to operational disruptions in the Middle East.

CNOOC likewise posted record-breaking metrics, with revenue climbing 16.9 percent to 242.66 billion yuan and net profit surging 23.4 percent to 85.82 billion yuan. The offshore producer's total net output rose 3.7 percent to a record 398.7 million barrels of oil equivalent.

"The shifting landscape in the Middle East did present some challenges, but the overall impact on our operations was minimal," said Huang Yongzhang, CEO of CNOOC Ltd, adding that many regional projects have already returned to pre-conflict capacity.

"In the first half, we intensified our efforts to increase domestic reserves and production. As our core business is oil and gas, our primary goal for exploration and development investment is output growth — ultimately, profit lies within every barrel of oil."

Meanwhile, Sinopec, the world's largest refiner, reported a net profit of 25.63 billion yuan, up 19.3 percent — its fastest first-half growth rate in five years. Its exploration and production segment generated 28.7 billion yuan in operating profit, up 21.5 percent.

Looking ahead, the company will deploy diversified procurement and multichannel transportation strategies to hedge against regional instability, steadily increasing crude purchases from non-Middle Eastern regions to ensure supply chain security.

The robust upstream performance and strategic maneuvering by the "big three" underscore China's broader strategy to safeguard its energy security amid global market turbulence.

The National Energy Administration said the nation's domestic oil and gas production reached historic highs in 2025. Domestic crude output surged to a record 216 million metric tons last year, while natural gas production expanded by more than 10 billion cubic meters for the ninth consecutive year, it said.

Technological breakthroughs in exploration and production are the driving force behind this growing self-sufficiency, Lu Ruquan, head of the CNPC Economics and Technology Research Institute, said earlier.

Continuous, heavy capital investments by the three State energy giants have unlocked significant discoveries across both conventional and unconventional fields, Lu said.

zhengxin@chinadaily.com.cn