BEIJING, March 23 (UPI) -- China Petroleum & Chemical Corporation said the slowdown in the Chinese economy and the low price of crude oil means major challenges ahead in 2015.
Fu Chengyu, chairman of the company known also as Sinpece, said his company last year was focused on quality growth, adjusting each segment of its business accordingly.
"In 2015, China will enter a new normal phase of slower growth while international crude oil prices are likely to stay low," he said in a statement Sunday. "The company still faces a challenging operating environment. Sinopec will seize the opportunities and tackle the challenges."
The phrase "new normal" was coined last year by Chinese President Xi Jinping, who said qualitative growth was favored over quantitative growth.
China, in the 35-year period ending in 2013, posted double-digit growth. It has slowed down to around 7.5 percent in recent years.
For Sinopec, last year's capital spending was down 4.2 percent. Exploration and production accounted for about half of the company's spending last year. Net profit for the company was down 29.4 percent year-on-year.
The company said crude oil production in China remained flat, but posted gains in Sinopec's overseas assets. With the inauguration of shale natural gas production in China last year, Sinopec said natural gas production grew 8.5 percent last year.
Nevertheless, the chairman said Sinopec would have to adapt in 2015 to the low oil price era.
"We are committed to development through the improvement of internal quality and efficiency," he said.
