China’s biggest oil and gas producer says expects a 60-70% profit drop

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Photo courtesy: PetroChina

PetroChina Co., China’s biggest oil and gas producer, said it expects its 2015 profit to decline between 60-70 percent due to a fall in global crude and domestic natural gas prices.

The company said in a statement that it expects the 2015 net income at 107.2 billion yuan, or $16.3 billion, according to estimates complied under China accounting standards.

“In 2015, due to the factors such as the price of international crude oil has declined significantly and the price of domestic natural gas has been driven down, a relatively large reduction in the Company’s profit occurred,” it said.

PetroChina said it expects the market to continue its slump this year due to intensified competition.

“The Company will actively implement the four strategies including resource, marketing, internationalization and innovation, actively implement measures for broadening sources of income and reducing expenditure as well as cutting costs and enhancing efficiency, and optimize its business layouts and asset structures in order to endeavour to bring continuing returns to all shareholders,” it said.

A 35 percent drop in crude prices has savaged energy firms and forced them cut staff and investments. A global glut due to OPEC’s insistence to not cut production has hit companies from the United States to Asia.

 

 

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