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Market conditions to allow China NOCs to continue to cut debt ratios in 2019 – Fitch

China's three NOCs will be able to further cut their debt ratios in 2019, Fitch Ratings has said.
By Staff reporter 20 November 2018 Asia Pacific / Companies & Finance 0 33381

Firm oil prices, improved earnings and modest capital expenditure growth will allow China’s three NOCs to continue cutting debt ratios on their balance sheets next year, but the pace of deleveraging is unlikely to be as rapid as the last two to three years, when spending was cut back significantly, Fitch Ratings said on Tuesday.

The companies’ upstream capital expenditure will continue to rise in 2019, led by stabilising prices, the need to replenish oil and gas reserves, and a push to catch...