The Company also initiated special campaign to enhance quality and profitability, optimized production and operation while strengthening investment and cost control, striving to minimize the impact of the pandemic. Under the International Financial Reporting Standards,
First Quarter Results Review
Focused on highly efficient exploration and profitability-oriented development, aiming to increase economic scale of recoverable reserves and continuously secure resources base. In the first quarter of 2020, the oil and natural
gas equivalent output achieved an amount of 414 million barrels, representing an increase of 6.1% year on year. The Company actively responded to the challenges of the low oil price, continued on cost control, and the unit oil and gas lifting cost decreased by 8.9% year on year, thus the Exploration and Production segment realized an operating profit of
Continued being customer-centric and market-oriented while optimizing
production operations. The Refining and Chemicals segment took proactive steps to manage the adverse impact of decreasing demand in the domestic market of refined products, reasonably adjusted load of facilities and structure of products and optimized production and operation, while pushing forward transformation and upgrading, and promoting development at lower cost. The Company endeavored to increase the output of highly value-added chemical products, which resulted in an increase of 2.9% in the outputs of chemical commodity products year-on-year. In the first quarter of 2020, the Company processed 277 million barrels of crude oil, representing a decrease of 9.6% year on year; the production of refined oil products was 25.208 million tons, representing a decrease of 13.8% year-on-year. The Refining and Chemicals segment realized operating losses of
Amid the pandemic of Covid-19, the Company actively fulfilled its social
responsibilities. While comprehensively promoting the prevention and control of the pandemic,
Outlook
Looking ahead to the remaining three quarters of 2020, affected by the downturn of the world economy, the supply of global oil market is expected to remain excessive, and the global oil price is expected to fluctuate at a low level. Facing this unprecedented and severe situation, the Company will highlight its key projects while constraining its non-major ones, insist on cutting cost as well as enhancing profitability, and adhere to the bottom line thinking of adjusting expenses based on income. It will also adhere to a long-term positive response, carry out special campaign to enhance quality and profitability. The Company will adjust its annual development and investment plan in a timely and dynamic manner according to change in oil price, optimize investment structure and improve the return on investment, strengthen the overall coordination of industrial chain and value chain, implement financial operation to create efficiency, and strictly control the management costs and expenses. It will also strengthen the performance-linked examination, exert the driving force of technological innovation and deepen the market-oriented reform to ensure the orderly functioning of production and operations, aiming to maintain the healthy and sustainable development of its financial situation, striving to create value for shareholders.
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