Oil majors post Q1 earnings slump

Two largest state-owned energy firms suffered from declining demand and plummeting prices

by Xu Yuenai
Oil majors post Q1 earnings slump
Sinopec lost 19.8bn yuan in the three months through March.

(ATF) China’s largest state-owned oil companies saw revenue slump in the first quarter as the global coronavirus lockdown suppressed demand for the fuel and prices slumped.

Petrochina posted operating income of 509.1 billion yuan ($72.3bn), down 14.4% year-on-year. The net loss attributable to the shareholders of the parent company was 16.2bn yuan – a decrease of 26.5bn yuan from the net profit of 10.2bn yuan in the same period last year – due to the decrease in operating income and loss of inventory as oil prices fell.

Meanwhile, Sinopec lost 19.8bn yuan in the three months through March, compared with profit of 14.8bn yuan last year.  The shortfall was the largest in Sinopec’s history, and amounted to average daily losses of 217 million yuan.