Sinopec Makes Slight Cut to 2020 Capex
Chinese state-run Sinopec March 29 announced that its capital expenditure for 2020 would be yuan 143.4bn ($20bn), down 2.5% yr/yr, amid oil price decline and the Covid-19 pandemic.
The company will spend yuan 61.1bn on exploration and production with a focus on the Shengli and Northwest crude oil development projects, the Fuling and Weirong shale gas projects, the construction of gas pipelines and storage facilities and overseas oil and gas projects.
Sinopec did not give guidance for 2020 production, noting that it was assessing the impact of Covid-19 outbreak. “Due to the outbreak, the adjustment of the company's production plan for 2020 is currently underway. We will confirm the production plan according to the market trends in the future,” it said.
The company produced 284.22mn barrels of crude oil in 2019, down 1.5% yr/yr, and 1.04 trillion ft3 of gas, up 7.2% yr/yr.
Sinopec’s 2019 net profit fell 8.7% yr/yr to yuan 57.6bn due to shrinking refining margins caused by industrial overcapacity and lukewarm fuel demand.