Chinese state-controlled oil firms PetroChina and Sinopec plan further cuts to capital expenditure (capex) this year after lower oil prices and asset impairments hit their profits in 2015. A stronger downstream performance and cost-cutting measures helped limit the decline in profits. Sinopec’s full-year profit dropped by 30pc compared with 2014 to 32.4bn yuan ($5bn), while PetroChina’s fell by 67pc to Yn35.5bn (see table). PetroChina took Yn25bn in write-downs and Sinopec booked an Yn8.8bn impairment charge. Sinopec plans to cut capex by 11pc compared with last year to just over Yn100bn. PetroChina is targeting a 5pc reduction to Yn192bn, based on a $50/bl oil price assumption (see table). Investment could be cut by a further 15pc if oil prices average $40/bl, PetroChina chairman Wang Yilin says.
展开▼
