SSC Releases Annual Results 2015 in Hongkong

On March 31, 2016, SSC held 2017 Annual Results Release Conference in Hong Kong. Jiao Fangzheng who is vice president of Sinopec Group and chairman of SSC, Sun Qingde who is deputy chairman and president of SSC, Zhou Shiliang who is executive director and vice president of SSC, Wang Hongchen who is chief accountant and Li Honghai who is secretary of the Board were present at the conference.

110 analysts and journalists from 7 presses attended the 2015 Annual Results Release Conference when SSC senior management released the performance of 2015 and expectations for 2016, and answered questions concerned by investors and the Press.

In 2015, as the global economy was weak on recovery and Chinese economy slowed down, the global oil prices were at low levels and making records of lower prices more than once. Then foreign and Chinese oil companies cut down E&P CAPEX, which makes dual slips of workload and service prices in the oilfield service industry where competitions were severely challenging. Meanwhile, the CAPEX for shale gas, sour gas, CBM and geo-thermal energy steadily increased to meet the increasing demands of clean energy, such as natural gas, in China, making growth points for the domestic oilfield market. In 2015, SSC’s consolidated revenue is RMB 60.35 billion yuan with YoY reduction of 36.1%, and the net profit attributable to shareholders is RMB 24.48million yuan,with YoY reduction of 98.0%.

SSC President Jiao Fangzheng spoke at the meeting that in 2015 SSC confronted the duel slip of workload and service prices together with severe challenges in the oilfield service market. It focused on making profits, actively extended the market, enhanced internal management and capabilities, dug the potentials and increased the profits, optimized and allocated the internal resources, made all the efforts to work for more profits, and maintained stable progress. Finally, SSC made profits in such a severe and hard time. In 2016, the company will firmly adhere to the development concept of ‘market-oriented, service-relied on, profit-led, and win-win coopeartion’. It will make focus on market extension, digging the potentials, increasing profits, allocating structure, reforms and innovation, strict management and ‘Iron Army ‘training and management to make a good opening for implementing the 13th Five-year development strategy. It is deeply believed that with join efforts of all the staff, the company will move forward steadily in the 13th Five-year, make more profits for the shareholders and the society and continued the progress towards a Word-class integrated oilfield service company.

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