Report summaryCNPC's strategic direction has changed over the last two years. Rising costs and Chinese government scrutiny saw the company move away from an increasingly bold international expansion, even before the oil price crash of H2 2014. Lower oil prices and weaker economic growth in China have seen further retrenchment. PetroChina, CNPC's principal subsidiary, has reduced its 2015 investment budget twice and cut its dividend. Meanwhile CNPC has put international M&A on hold. The near-term priorities are cost cutting and efficiency in the face of weaker fundamentals. But there are signs that CNPC could also be considering counter-cyclical moves – PetroChina's chairman has indicated a return to M&A is an option.
This report includes 2 file(s)
- CNPC corporate report PDF - 1001.45 KB 25 Pages, 8 Tables, 25 Figures
- CNPC-PetroChina Corporate Report.xls XLS - 4.03 MB