Cnooc, PetroChina and Sinopec report higher first-quarter profits and production
Updated
Updated · MarketWatch · May 7
Cnooc, PetroChina and Sinopec report higher first-quarter profits and production
12 articles · Updated · MarketWatch · May 7
The rebound follows a war-driven Middle East price surge, with Cnooc seen best placed near term and Sinopec most exposed because of its reliance on regional crude imports.
Analysts say PetroChina's mixed upstream and refining business leaves it vulnerable to higher feedstock costs, while Chinese fuel price caps and export curbs are expected to squeeze refining margins further.
With China importing 70% of its oil and over half from the Middle East, the crisis is reinforcing Beijing's energy-security drive and could accelerate investment in renewables.
As its oil giants profit, is China's green strategy creating a new form of global energy dominance?
China leads the green revolution but also builds record coal plants. What is its true energy endgame?
China's National Oil Companies Achieve Record Q1 2026 Production and Profit Amid Geopolitical Risks
Overview
In Q1 2026, China's major oil companies showed strong results driven by rising oil prices fueled by Middle East tensions. CNOOC led with record production and a 7.1% profit increase, benefiting from minimal exposure to Middle East risks and a 12.3% rise in overseas output. PetroChina saw a 23% surge in aviation fuel sales and a 28% jump in refined fuel profits, supported by strong domestic demand and new energy growth, despite facing output cuts in Iraqi oilfields and a sharp cash flow decline. Sinopec's refining profits soared eightfold, but its chemical losses and reliance on imported crude under regulated prices limited gains, resulting in flat stock performance. Overall, upstream growth, diversification, and geopolitical positioning shaped investor confidence amid ongoing market uncertainties.