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PetroChina's (0857) net profits rose by 8 percent yearly to 161 billion yuan (HK$174.6 billion), hitting a new record, as a rebound in natural gas demand helped the Chinese energy major offset the impact of falling oil prices.

The country's biggest oil and gas producer was buoyed by China's exit from pandemic lockdowns, as fuel demand rebounded on increased travel and factories returning to more normal operations. Natural gas consumption rose 7.6 percent last year after falling in 2022 for the first time in decades, a boon for PetroChina, which supplies the vast majority of the nation's gas.

The rebound in gas demand was aided by government policies that allowed regulated prices to increase. The state-owned company's gas unit made 43 billion yuan in profits in 2023, up from 13 billion yuan in 2022.

That jump was more than enough to balance out smaller profits from drilling, which was hit by a 17 percent year-on-year decline in oil prices, and refining.

PetroChina and its peers Sinopec (0386) and CNOOC (0883) have been under pressure from Beijing to maintain oil output and boost gas production to keep the country from becoming too dependent on imported energy. PetroChina boosted total oil and gas production by 4.4 percent and plans another modest increase this year.

The company budgeted 258 billion yuan for capital expenditures this year, after spending 275 billion yuan last year.

Meanwhile, Sinopec said yesterday that the Red Sea crisis put the costs of buying crude oil under pressure.

PetroChina profit increases 8pc to record 161b yuan