PetroChina and Sinopec to spend more in second half
September 8, 2014 Category Petrochemicals, Weekly
Oil producers are preparing to ramp up multi-billion dollar capital spending plans that were put on hold amid a corruption inquiry that implicated at least 11 former senior executives at PetroChina and its parent company China National Petroleum Corp (CNPC). “The crackdown bodes well for mid- to long-term development of the economy as it would undermine state monopolies and improve investment efficiency,” said Zhu Jianfang, Economist with CITIC Securities in Beijing. PetroChina’s first-half spending fell 16% year-on-year to CNY91 billion. The company attributed the drop to its efforts to “optimize its investment structure and reasonably adjust the pace of construction of projects”, but reiterated its target is to spend CNY297 billion this year, down 7% from 2013. Sinopec said it will cut expenditure by 4% to CNY162 billion this year, and reported a 25% drop in capex in the first half. It vowed to step up investment in major producing projects in the second half. Half of the about 20 major listed Chinese oilfield service suppliers posted sharply lower profits, or even losses, for the first half of the year. Anton Oilfield, Petro-king, Shandong Molong and Kingdream all took a first-half pounding, reporting 80% to 85% drops in interim earnings. Sichuan Renzhi and Tong Oil posted losses, with Renzhi blaming Sinopec’s recycling of drilling fluids, one of its core products. Some companies predict an imminent recovery as PetroChina and Sinopec invest more in upstream projects, the South China Morning Post reports.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world