PetroChina, China's largest oil and gas producer, announced record profits in the first quarter of 2024, driven by rising global oil prices and stable demand for natural gas.

PetroChina recorded a net income of 45.7 billion yuan ($6.3 billion) in the first three months of 2024, compared to 43.6 billion yuan in the same period last year. The company's revenues increased by 11% and reached 812 billion yuan.

The company attributed the increased profits to the strong performance of the drilling and natural gas sectors, which compensated for losses in the refining and marketing sectors.

PetroChina's results reflect the mixed performance of state-owned oil companies in China during the first quarter. Cnooc, which focuses on exploration and production, achieved record quarterly profits, while Sinopec, which focuses on refining and marketing, saw first-quarter profits decline compared to the previous year.

Beijing has relied on PetroChina and its major government companies in recent years to maintain oil production and enhance gas production, and PetroChina recorded an increase of 1.4% in oil production and 3.9% for gas during the first quarter.

Part of PetroChina's record profits is attributed to a recovery in demand for natural gas. As the Chinese economy showed an uneven recovery from the restrictions of the COVID-19 pandemic, PetroChina allocated 56 billion yuan for capital expenditures in the first quarter of this year, an increase of 10% from 2023.