Chinese Oil Companies All set to Handle Tougher Second Half of this Financial Year
Published By : 27 Aug 2015 | Published By : QYRESEARCH
Chinese companies state that they are preparing themselves for a tumultuous second half as the tough situation in global oil market continues to send their earnings plummeting.
Amid the weak economic conditions that have grappled the entire globe, demand for everything from iron ore, to natural gas, to oil is constrained in the global market, results of the first half of financial year released by major oil companies in China showed that the revenues have toppled.
While releasing the results of the interim sales for this year, Chinese oil majors Sinopec Corp. and Cnooc Ltd. said that in the current situation, they have very little expectations for a sharp recovery of oil and gas prices in the global market are ready to face consequences of the situation.
Yang Hua, Chairman of the oil company Cnooc, said that the world’s macro-economic environment of the day displays little optimism and oil prices in the international market are expected to remain low for some time now. The company has predicted that the tough oil market will require it to operate under severe operating environment for the rest of this year after the company has observed a steep reduction in its profits in the first half of the year.
The company has also mentioned that it was currently on track in terms of the target it has set itself for cost cutting for the year to deal with the plummeting prices of resources. The company also mentioned that the total capital spending of the company has fallen down to nearly 33 billion yuan, one-third of the past year, in the first half of the year and that cutting 70-80 billion yuan in terms of capital spending over the course of this financial year is what the company is targeting at.