PetroChina's Gas Business Booms, Outperforms S&P 500
PetroChina, the world's second-largest oil and gas producer, has witnessed remarkable growth in its natural gas marketing business. Domestic volumes have surged by 10% over the past two years, while gross profit has soared by 67%.
The state-owned company has benefited from increased government support and has announced ambitious projects to boost natural gas production. These include expanding shale gas exploration, developing coalbed methane, and advancing conventional gas fields.
PetroChina's growth prospects have been recognised by investors. In early 2021, it was recommended for its cheap valuation, and it has since outperformed the S&P 500, offering a total return of 346% compared to the index's 77%.
Despite a significant rally, PetroChina was held last year due to its reasonable valuation. Currently, it is trading at a trailing price-to-earnings ratio of 7.7x, lower than the energy sector median of 12.4x.
PetroChina's production has reached record highs, with 5.1 million barrels per day in the first half of 2025, surpassing Exxon Mobil's production of 4.6 million barrels per day. This growth has been driven by China's increasing consumption of natural gas.
PetroChina's strong performance and growth prospects are expected to continue, supported by China's growing demand for natural gas. However, the global oil market's weak outlook may pose challenges. The company's ability to navigate this landscape will be crucial for its future success.
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