20.04.2015, 11:52
Fitch: China Oilfield Services Firms Face High Competition, Thinner Margins
OREANDA-NEWS. Fitch Ratings says today in a new report that Chinese oilfield services companies will continue to face high competition and thinner margins as upstream oil companies cut capex amid the current low oil price environment. The situation is further intensified by their state-owned customers exercising their bargaining power to prolong payment periods, which has led to an increase in working capital, and thus higher short-term debt financing and higher leverage.
Key developments to watch for over the coming months include liquidity, and the ability to control costs and secure new orders amid intense competition, especially in the onshore segment.
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