China National Petroleum Corporation, latest earnings announced! Dragged down by crude oil prices, net profit shows negative growth for the first time in five years, yet still distributes a whopping 45.8 billion yuan in dividends.

On March 29, China National Petroleum Corporation (601857) released its 2025 annual report.

The annual report shows that in 2025, China National Petroleum Corporation achieved operating revenue of about 2.86 trillion yuan, compared with 2.94 trillion yuan in the same period last year, a year-on-year decrease of 2.5%. Net profit attributable to shareholders was about 157.302 billion yuan, compared with 164.676 billion yuan in the same period last year, a year-on-year decrease of 4.5%, which translates to an average daily profit of about 430 million yuan. Basic earnings per share were 0.86 yuan, down 0.04 yuan year on year.

Notably, this marks the third consecutive year that China National Petroleum Corporation’s revenue has declined, and it can also be the first time in the company’s most recent five years that net profit attributable to shareholders has recorded negative growth.

Despite the year-on-year decline in its 2025 performance, the company’s dividend proposal remains generous. For 2025, the company plans to distribute cash dividends of 0.25 yuan per share to all shareholders (including tax), with a total planned cash dividend distribution of 45.755 billion yuan (including tax). The proposed final dividend is subject to approval by shareholders at the 2025 annual general meeting.

Image source: China National Petroleum Corporation

China National Petroleum Corporation stated that the decline in operating revenue in 2025 was mainly due to the combined effects of lower prices for crude oil, refined oil, and other oil and gas products, as well as changes in sales volume.

According to the annual report, in 2025, the global crude oil market had a supply-demand surplus. In addition, frequent geopolitical conflicts and changes in the trade landscape caused international oil prices to fall year on year. The full-year average price of Brent crude oil futures was 68.19 US dollars per barrel, down 14.6% year on year; the full-year average price of West Texas Intermediate (WTI) crude oil futures was 64.73 US dollars per barrel, down 14.6% year on year.

In 2025, the company’s oil and gas and new energy segment achieved operating revenue of 824.808 billion yuan, down 9.0% year on year, mainly due to the decline in crude oil prices and the combined effect of increased natural gas sales. As the company’s most important profit source, this segment recorded operating profit of 136.065 billion yuan, down 14.8% from 159.745 billion yuan in the same period last year.

In 2025, the group’s average realized crude oil price was 64.11 US dollars per barrel, down 14.2% from 74.70 US dollars per barrel in the same period last year. In 2025, the trend of domestic refined oil prices remained broadly consistent with the changes in international market oil prices. The government adjusted domestic gasoline and diesel prices 19 times. The benchmark prices for gasoline and diesel were cumulatively lowered by 915 yuan per ton and 880 yuan per ton, respectively.

The natural gas sales segment performed strongly. In 2025, operating profit reached 60.802 billion yuan, up 12.6% year on year. This was mainly due to the group’s increased efforts in market development and the increase in domestic natural gas sales, as well as its efforts to control procurement costs and expand sales gross margin.

In 2025, the group’s overseas business achieved operating revenue of 970.233 billion yuan, accounting for 33.9% of the group’s total operating revenue; it achieved profit before tax of 32.613 billion yuan, accounting for 14.4% of the group’s profit before tax. The group’s overseas business maintained steady development, and its level of internationalized operations continued to improve.

It is worth noting that although revenue and profit declined, the company’s “cash-generating” capability remains strong. Net cash flow from operating activities reached 412.510 billion yuan, up 1.5% year on year. The balance of cash and cash equivalents at period end was as high as 206.162 billion yuan, providing a solid foundation for large-scale dividend distributions and capital expenditures.

In terms of secondary market performance, China National Petroleum Corporation’s share price has risen by more than 50% over the past year, and it has risen by about 15% since the beginning of this year. As of March 27, China National Petroleum Corporation closed at 12.07 yuan, up 1.09%. The latest total market capitalization was 2.21 trillion yuan.

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