Low global crude price hurts big Chinese players

Global Business

Low global crude price hurts big Chinese players

China’s two largest fuel producers, SINOPEC and China National Petroleum Corporation, reported waning profitability this week, mainly due to prolonged weakness in oil prices.

ICS’s Dong Yiling filed this report for CCTV, from Shanghai.

Low global crude price hurts big Chinese players

Low global crude price hurts big Chinese players

China's two largest fuel producers, SINOPEC and China National Petroleum Corporation, reported waning profitability this week, mainly due to prolonged weakness in oil prices. ICS's Dong Yiling filed this report for CCTV, from Shanghai.

More details:

  • Sinopec’s interim financial report says that its net profits decreased 22.3 percent in the first half of 2015 to 24.4 billion yuan. The oil refining, which accounts for 60 percent of its business, saw profits soar 57 percent to 15 billion yuan. PetroChina reported a 62.7 percent fall in net profits to 25.4 billion yuan in the same period. Because of the fall in the crude price, profits for its crude exploration business was 33 billion yuan, down 68 percent. Its oil refining and chemical products business made profits of 4.7 billion yuan, which was the first time that division had made money in four years.
  • The international crude price has averaged about $58 a barrel in the first half of the year, down 47 percent from the same period in 2014, which possibly accounted for the decrease.

Business expert Kent Moors on China’s oil market
The oil supply and demand in China, and the effect of international oil prices plummeted, CCTV’s Phillip Yin spoke to Kent Moors, Executive Chair of The Money Map Global Energy Symposium.
Follow Phillip Yin on Twitter @PhillipTKYin.

Business expert Kent Moors on China oil

Business expert Kent Moors on China oil

The oil supply and demand in China, and the effect of international oil prices plummeted, CCTV’s Phillip Yin spoke to Kent Moors, Executive Chair of The Money Map Global Energy Symposium.