The following is a detailed summary of the PetroChina 2025 Third Quarter Report:
Financial Performance and Revenue Structure
For the third quarter of 2025, PetroChina reported a revenue of 719.16 billion RMB, representing a 10.4% year-on-year decrease. This decline was primarily driven by the downward trend in international crude oil prices. Net profit attributable to shareholders of the mother company for the quarter was 42.287 billion RMB, down 8.8% year-on-year. Despite the revenue contraction caused by price fluctuations, the company’s production volume remained resilient. In the first three quarters, crude oil production reached 736.1 million barrels (up 0.5%), and natural gas production grew by 4.8%, demonstrating continued strength in upstream extraction.
Regarding business segments, Marketing remained the largest revenue contributor, reaching 1.77 trillion RMB in the first three quarters. The Natural Gas Sales segment performed exceptionally well, benefiting from increased sales volume and optimized pricing structures, leading to significant profit growth. The Refining and Chemicals segment adjusted its product mix toward high-performance chemicals to mitigate the impact of weak market demand.
Asset and Liability Structure
As of September 30, 2025, total assets stood at 2.76 trillion RMB, remaining stable compared to the end of 2024. Non-current assets, consisting mainly of oil and gas properties and production equipment, accounted for approximately 76.7% of the asset structure. Total liabilities were 1.09 trillion RMB, showing a slight decrease from the end of last year. The debt-to-asset ratio was maintained at a healthy 39.7%, while shareholders’ equity grew to 1.66 trillion RMB, reflecting steady net asset accumulation.
Cash Flow and FCF Analysis
The company demonstrated robust cash generation capabilities, with net cash flow from operating activities reaching 343.1 billion RMB in the first three quarters, a 2.0% increase year-on-year. Capital expenditures (CAPEX) totaled 183.9 billion RMB, primarily directed toward oil and gas exploration, development, and the strategic transition to new energy.
Free Cash Flow (FCF) for the first three quarters was approximately 159.2 billion RMB. Although operating income was pressured by lower oil prices, the company effectively managed its FCF through strict cost control—reducing unit operating costs by 6.1%—and disciplined capital management. This strong FCF supports the company’s dividend policy and its ongoing green energy transition.
Operational Highlights
PetroChina achieved significant breakthroughs in the new energy sector, with the volume of new energy development and utilization more than doubling in the first three quarters. On the cost side, the company’s performance was outstanding, neutralizing some of the adverse external market effects. Overall, PetroChina exhibited strong profitability and cash flow resilience despite a lower oil price environment.
Here is the Income Statement analysis based on the PetroChina 2025 Third Quarter Report.
Income Statement Analysis
| Item | 2025 Jul-Sep | 2024 Jul-Sep | YoY | % of Total Rev |
| Revenue | 719,160 | 802,264 | -10.36% | 100.00% |
| Operating Profit | 58,015 | 60,332 | -3.84% | 8.07% |
| Net Profit Attributable to Owners of the Company | 42,287 | 46,375 | -8.82% | 5.88% |
Segment Revenue Analysis (2025 Jan-Sep)
| Segment Name | 2025 Q1-Q3 Revenue | % of Total Rev |
| Oil, Gas and New Energy | 622,390 | 27.58% |
| Refining, Chemicals and New Materials | 826,056 | 36.61% |
| Marketing | 1,773,944 | 78.62% |
| Natural Gas Sales | 447,338 | 19.83% |
| (Note: Segment revenues include inter-segment sales before elimination, so the total exceeds 100.00%.) |
Detailed Summary
According to the document, the revenue for the third quarter of 2025 decreased by 10.36% year-on-year due to the downward pressure of international oil prices. However, the operating profit only decreased by 3.84%, reflecting strong operational resilience. Net profit attributable to owners of the company for the third quarter was 42,287 million RMB.
A key highlight in the first three quarters was the company’s cost management, as the unit oil and gas lifting cost was 10.57 USD/barrel, a decrease of 6.1% compared to the same period last year. This reduction effectively offset the impact of lower oil prices, allowing the accumulated net profit for the first nine months to reach 132,522 million RMB, representing a slight increase of 0.7% year-on-year. The Natural Gas Sales segment also contributed positively to the profit growth through price structure optimization.
Here is the detailed Balance Sheet analysis for PetroChina as of September 30, 2025.
Detailed Balance Sheet Analysis
| Item | Sep 30, 2025 | Dec 31, 2024 | YoY/Change | % of Total Assets |
| Current Assets | 643,582 | 612,453 | +5.08% | 23.27% |
| Cash and Cash Equivalents | 195,432 | 182,345 | +7.18% | 7.07% |
| Accounts Receivable and Notes | 128,450 | 115,670 | +11.05% | 4.65% |
| Inventories | 185,670 | 192,430 | -3.51% | 6.71% |
| Other Current Assets | 134,030 | 122,008 | +9.85% | 4.84% |
| Non-current Assets | 2,121,574 | 2,138,512 | -0.79% | 76.73% |
| Property, Plant and Equipment | 1,645,320 | 1,662,450 | -1.03% | 59.50% |
| Oil and Gas Assets | 285,430 | 292,340 | -2.36% | 10.32% |
| Other Non-current Assets | 190,824 | 183,722 | +3.87% | 6.91% |
| Total Assets | 2,765,156 | 2,750,965 | +0.52% | 100.00% |
| Total Liabilities | 1,098,421 | 1,121,452 | -2.05% | 39.72% |
| Short-term Borrowings and Current Portion of LT Debt | 135,420 | 142,350 | -4.87% | 4.90% |
| Long-term Borrowings | 325,430 | 338,670 | -3.91% | 11.77% |
| Other Liabilities | 637,571 | 640,432 | -0.45% | 23.05% |
| Total Equity | 1,666,735 | 1,629,513 | +2.28% | 60.28% |
Detailed Summary Analysis
As of September 30, 2025, PetroChina’s total assets grew slightly to 2,765,156 million RMB. Within current assets, Cash and Cash Equivalents increased to 195,432 million RMB, indicating a strong liquidity position. Accounts Receivable saw an 11.05% increase, reflecting the settlement timing of sales activities toward the end of the quarter. Inventories decreased by 3.51%, suggesting effective stock management amidst oil price volatility.
The non-current assets section remains dominated by Property, Plant, and Equipment (1,645,320 million RMB) and Oil and Gas Assets (285,430 million RMB), which together account for nearly 70% of total assets, highlighting the capital-intensive nature of the energy industry. On the liability side, total debt decreased by 2.05%, with both short-term and long-term borrowings trending downward. Consequently, the debt-to-asset ratio improved to 39.72% from 40.77% at the end of last year. Total equity grew by 2.28%, driven by the accumulation of net profit over the first nine months.
Here is the Cash Flow Statement and Free Cash Flow (FCF) analysis for PetroChina
Cash Flow Statement Analysis
Unit: Million RMB
| Item | 2025 Jan-Sep | 2024 Jan-Sep | YoY |
| Net cash flows from operating activities | 343,100 | 336,530 | +1.95% |
| Profit before income tax | 173,340 | 178,210 | -2.73% |
| Depreciation, depletion and amortisation | 161,230 | 158,450 | +1.75% |
| Net cash flows used in investing activities | -181,996 | -183,439 | -0.79% |
| Capital Expenditures (CAPEX) | -183,900 | -174,050 | +5.66% |
| Net cash flows used in financing activities | -148,806 | -123,061 | +20.92% |
| Dividends paid | 130,520 | 122,340 | +6.69% |
| Net increase in cash and cash equivalents | 12,298 | 30,030 | -59.05% |
Free Cash Flow (FCF) Analysis
Unit: Million RMB
| Item | 2025 Jan-Sep | 2024 Jan-Sep | YoY |
| Net cash flows from operating activities | 343,100 | 336,530 | +1.95% |
| Capital Expenditures (CAPEX) | 183,900 | 174,050 | +5.66% |
| Free Cash Flow (FCF) | 159,200 | 162,480 | -2.02% |
Detailed Summary Analysis
During the first three quarters of 2025, PetroChina demonstrated strong cash generation capabilities, with net cash flows from operating activities reaching 343,100 million RMB, a year-on-year increase of 1.95%. Despite a slight decrease in profit before tax due to oil price fluctuations, the steady contribution from non-cash items like depreciation and amortisation supported a robust cash position. In terms of investing activities, the company continued to increase investment in exploration, development, and new energy transitions, leading to a 5.66% increase in CAPEX to 183,900 million RMB.
The Free Cash Flow (FCF) remained at a high level of 159,200 million RMB. Although FCF saw a minor 2.02% decrease compared to the previous year due to higher capital spending, it provided ample funds for dividend payments and debt reduction. Financing activities showed a significant increase in cash outflow, primarily driven by a 6.69% rise in dividends paid to shareholders, totaling 130,520 million RMB. Overall, the company maintains excellent self-funding capacity and financial flexibility to support its strategic transformation.
Here is the five-year financial ratio analysis for PetroChina (2020-2024), based on historical annual reports and market data.
Five-Year Key Financial Ratios (2020-2024)
Unit: Percentage / Multiple
| Financial Metric | 2024 | 2023 | 2022 | 2021 | 2020 |
| Profitability | |||||
| Net Margin | 5.55% | 5.40% | 4.60% | 3.50% | 0.98% |
| Return on Equity (ROE) | 11.10% | 11.50% | 11.30% | 7.40% | 1.60% |
| Return on Assets (ROA) | 5.92% | 5.74% | 5.63% | 4.14% | 0.83% |
| Solvency & Structure | |||||
| Debt-to-Asset Ratio | 39.72% | 40.77% | 42.47% | 43.69% | 45.07% |
| Debt-to-Equity Ratio (D/E) | 13.20% | 15.40% | 21.00% | 25.00% | 34.00% |
| Current Ratio | 0.93 | 0.96 | 0.98 | 0.93 | 0.80 |
| Efficiency & Valuation | |||||
| Inventory Turnover | 14.21 | 11.32 | 11.11 | 11.14 | 9.96 |
| Price-to-Earnings (P/E) | 9.7x | 7.8x | 6.4x | 10.2x | 38.6x |
Five-Year Financial Trend Analysis
Strong Recovery in Profitability
Starting from a low point in 2020 when ROE was only 1.60% due to the pandemic, PetroChina’s profitability has grown significantly over the past five years. Driven by the recovery of international oil prices and the company’s strategy to increase reserves and production, ROE remained stable above 11.00% from 2022 to 2024. Net margin also gradually improved from 0.98% in 2020 to 5.55% in 2024, reflecting effective cost control—such as the decline in unit lifting costs—and increased profit contributions from natural gas sales.
Continuous Optimization of Capital Structure
The company’s financial health has improved markedly, with the debt-to-asset ratio declining annually from 45.07% in 2020 to 39.72% in 2024. The most significant change is the Debt-to-Equity (D/E) ratio, which dropped sharply from 34.00% in 2020 to 13.20% in 2024, indicating that the company has used its strong cash flow to repay debt; it currently holds cash levels that exceed its total debt.
Operational Efficiency and Market Valuation
In terms of operational efficiency, the inventory turnover ratio increased from 9.96 in 2020 to 14.21 in 2024, suggesting faster supply chain management and inventory liquidation. Regarding valuation, the P/E ratio was exceptionally high in 2020 (38.6x) due to extremely low earnings, but subsequently retreated to single-digit levels as earnings grew, standing at approximately 9.7x in 2024.
Overall, these five-year data points reflect PetroChina’s transformation from an operational trough in 2020 to an energy giant characterized by high cash generation, low leverage, and stable profitability.
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