Report published August 31, 2026
PetroChina (0857.HK) 2Q Earnings Review and Buy Rating — Goldman Sachs
Source and citation context
- Issuer
- Goldman Sachs
- Report date
- August 31, 2026
- Analysis as of
- August 28, 2026
Authors / editors: Amber Cai, Nikhil Bhandari, Randy Lau
Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
PetroChina's 2Q net income missed expectations by 18% due to higher upstream costs, lower realized crude prices, and reduced Middle East output. However, 1H free cash flow reached 70% of full-year assumptions, leading Goldman Sachs to maintain a Buy rating with a 12-month target price of HK$11.90 for H-shares and Rmb15.80 for A-shares.
Key Takeaways
- 1.PetroChina's 2Q net income missed Goldman Sachs estimates by 18%, driven by upstream cost increases, lower realized prices, and production declines in the Middle East.
- 2.Free cash flow generation remained strong in 1H, reaching 70% of GS full-year assumptions, while capex tracking at 39% is in line with historical seasonality.
- 3.Goldman Sachs reiterates Buy ratings on PetroChina H-shares (TP HK$11.90) and A-shares (TP Rmb15.80), supported by an attractive 2027E FCF yield of 10% and dividend coverage below US$60/bbl Brent.
Table of Contents
- Exhibit 1: Summary of PetroChina's key financial metrics
- Exhibit 2: Summary of PetroChina's segment performance
- Exhibit 3: Summary of PetroChina's operation
- Exhibit 4: PetroChina's 2Q gas sales price increased moderately yoy
- Exhibit 5: The combined gas margin of the E&P and natural gas sales segment realized at the high-end of the historical range
- Exhibit 6: 1H capex was at 39% of 2026 full year GSe, in line with the historical seasonal average
- Exhibit 7: PetroChina's 1H FCF generation has been strong and reached 70% of our full-year assumption
- Exhibit 8: PetroChina's cash flow multiple remains at a discount vs. global peers
- Disclosure Appendix
Report data
Exhibit 1: Summary of PetroChina's key financial metrics — as of August 28, 2026.
| Metric | Estimate | Context |
|---|---|---|
| Reported Net Income (Jun-26 Quarter) | 55603 mn rmb | Reported net income vs. Goldman Sachs estimate of Rmb 67,724 mn |
| 12-month Price Target (0857.HK) | 11.90 HK$ | Target price for H-shares vs HK$10.19 close price |
| 12-month Price Target (601857.SS) | 15.80 Rmb | Target price for A-shares vs Rmb11.23 close price |
| 1H Capex Progress | 39% | Capex spending as a percentage of 2026 full year GSe |
| 1H FCF Generation Progress | 70% | FCF generation reached 70% of GS full-year assumption |
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Authors / Editors
Reported Data Context
- Reported Net Income (Jun-26 Quarter): 55603 mn rmb (2Q26) · Source: Company data, Goldman Sachs Global Investment Research
- 12-month Price Target (0857.HK): 11.90 HK$ (12m) · Source: Goldman Sachs Research estimates
- 12-month Price Target (601857.SS): 15.80 Rmb (12m) · Source: Goldman Sachs Research estimates
- 1H Capex Progress: 39 % (1H26) · Source: Company data, Goldman Sachs Global Investment Research
- 1H FCF Generation Progress: 70 % (1H26) · Source: Company data
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