China's largest oil and gas producer PetroChina Co. Ltd. (NYSE: PTR; HKEX: 00857) reported its best quarterly profit in seven years on Thursday.
The China-based company focused on producing oil and gas said net income reached 27.7 billion yuan ($4.28 billion) in the first quarter, compared with a net loss of 16.23 billion yuan in the same period last year. Revenue, the company added in a filing to the Hong Kong Stock Exchange, increased 8.4% year-over-year to 551.9 billion yuan ($85.27 billion) in the third quarter. The company attributed the growth to an increase in production and sales.
Despite the financial results, the company reported the new firm, CNPC Kunlun Capital Company, is 51% owned by PetroChina parent China National Petroleum Corp, 29% by PetroChina and 20% by CNPC Capital.
PetroChina said in a statement that the company processed 298 million barrels of crude during the period, up 7.8% from a year earlier. Moreover, the company sees an increase of 2.2% in the sales of gasoline, diesel, and kerosene.
From January to March, oil and gas output grew 0.8% to 417.1 million barrels of oil equivalent, with crude oil production down 4.9% while gas output was up 8% at 1.17 trillion cubic feet, added by PetroChina.
Notable, the oil prices just underwent an adjustment in China. Gasoline is raised by 100 yuan per ton, and diesel is raised by 95 yuan per ton. In addition, the gas sales rallied nearly 15% and refined fuel surged 20.9% as Chinese fuel demand rebounded in tandem with robust economic growth.
Shares in PetroChina were trading at $36.75 per share Thursday morning in New York, up 95 cents.