(Bloomberg) -- PetroChina Co.’s profit hit record levels last year, as increased production offset lower energy prices and a weaker performance from its refining operations.

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Net income at China’s biggest oil and gas producer climbed 2% to 164.7 billion yuan ($22.7 billion), according to a filing on Sunday, although the result missed expectations. Revenue slipped to 2.94 trillion yuan from 3.01 trillion yuan. Global oil prices over the period averaged about 3% less the previous year.

PetroChina is the last of the nation’s state-owned oil giants to report annual earnings. The company’s portfolio of assets is the most balanced of the big three, straddling upstream drilling, refining and retail. The energy firm also dominates China’s market for natural gas.

The firm posted a 2.2% increase in output to a record 1.797 billion barrels of oil equivalent, including a 4.1% rise in gas. It set its target for 2025 at 1.827 billion barrels, although oil output is expected to edge lower while capital expenditure is also expected to decline.

Upstream operations, PetroChina’s largest business which includes new energy, saw a 7.1% increase in profit to 159.7 billion yuan. Gas and pipelines, meanwhile, soared 25% to 54 billion yuan. The firm is the biggest beneficiary of cheap Russian gas, while lower prices for imported liquefied natural gas also helped to boost sales.

Downstream was bleaker, with big slumps in refining, chemicals and retail due to China’s persistent oversupply — a dynamic that’s expected to weigh on the market this year. The government is pushing refiners to produce less fuel and more petrochemicals, as the electric-vehicle boom crimps consumption of diesel and gasoline. Demand for transport fuels is expected to keep declining this year, according to the International Energy Agency.

Top refiner Sinopec last week reported a decline in profits as EVs dragged on demand and China’s economy slowed. The country’s biggest offshore driller, Cnooc Ltd., on Thursday reported an increase in earnings after expanding production.

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This Week’s Diary

(All times Beijing unless noted.)

Monday, March 31:

China official PMIs for March, 09:30 Datang Renewable Power earnings briefing in HK, 10:00 PetroChina earnings briefing in HK, 16:00 Antaike’s China bauxite and alumina market conference in Chongqing, day 1

Tuesday, April 1:

Caixin’s China manufacturing PMI for March, 09:45 Antaike’s China bauxite and alumina market conference in Chongqing, day 2

Wednesday, April 2:

CSIA’s weekly polysilicon price assessment CCTD’s weekly online briefing on Chinese coal, 15:00 Chalco holds online earnings briefing, 16:45

Thursday, April 3:

Caixin’s China services & composite PMIs for March, 09:45 China’s weekly iron ore port stockpiles Shanghai exchange weekly commodities inventory, ~15:30 CSIA’s weekly solar wafer price assessment

Friday, April 4:

Holiday in China and Hong Kong

--With assistance from Twinnie Siu, Bingyan Wang and Tian Ying.

(Updates with additional detail throughout)

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