Profits for oil, cement, and coal companies plunge by up to 60 per cent
PetroChina Co. reports a 60 per cent drop in profits. China’s largest cement company reports a 30 per cent decline. The largest coal company saw its profits drop 16.1 per cent.
Beijing (AsiaNews/Agencies) – Some of China’s biggest companies are going through major difficulties, as evinced by their 2015 reports filed with the Shanghai Stock Exchange.
One of them is PetroChina Co., China's largest oil and gas producer, whose net profits shrank by more than 60 per cent as a result of a sluggish world economy, downward pressure on the domestic front, and plunges in international oil prices. Net profits were down to 35.51 billion yuan (U$ 5.5 billion) last year.
Anhui Conch Cement Co., China's largest cement maker, announced today that its net profits slumped by over 30 per cent year on year in 2015, because of a weakening property sector and slower fixed-asset investment. Its earnings per share fell from 2.07 yuan in 2014, to 1.42 yuan.
The China Coal Energy Co. also reported a huge loss and shrinking revenue in 2015 as prices dropped in the saturated coal industry. The Shanghai-listed mining company posted losses of 2.52 billion yuan (US$ 390 million) last year. Its total revenue dropped by 16.1 per cent year on year.
Coal mining is one of several heavy industries struggling with serious overcapacity as the world economy slows down. For analysts, this trend might end the jobs of at least six million people.
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