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Citigroup released a report stating that PetroChina's net profit in the first quarter of 2025 was 46.8 billion yuan, an increase of 2% compared to the previous year, exceeding the bank's forecast by a few percentage points and a 25% decrease compared to Sinopec during the same period. The bank believes that this performance is quite impressive despite a decrease in oil and gas prices by 8% and 3% respectively year on year. Exploration and Production (E&P) and natural gas marketing's Earnings Before Interest and Taxes (EBIT) still increased by 7% and 10% year on year. This reflects solid cost control (E&P extraction costs decreased by 6% to $9.8 per barrel) and an integrated natural gas business model, while downstream (refining, chemicals) profit margins continue to outperform Sinopec. Citigroup predicts that with more favorable annual natural gas contract revisions from April 2025 to March 2026, PetroChina's domestic natural gas unit EBIT will remain stable, and losses from imported natural gas will narrow further as import prices may start to decline from the second quarter of 2025. With a dividend yield of over 8% and positive free cash flow, PetroChina remains Citigroup's top choice for Chinese oil and gas companies. Looking ahead to the next quarter, impacted by falling oil prices, but with natural gas business providing a cushion, the bank maintains a "buy" rating with a target price of HK$8.20 for PetroChina's H shares.