On February 28, known as "the fourth domestic barrels" shaanxi prolong oil (group) co., LTD. (hereinafter referred to as the "extended oil") in the previous production workers, such as series of authors measures after the forward again, salary and low salary of measures to deal with the current low price challenge. Extend the oil's official website said in a news release, "extended from march first starting from the group company leadership scale down pay, and moderate delayed salary for all employees."

AnXunSi energy research center director li li to 21st century business herald reporters that workers take pay cuts and other measures, to extend to alleviate the current crisis of capital turnover difficult.

Extended again pushed the self-help measures, slow pay 3-6 months more than mid-level leadership 10% pay cut

Shaanxi to extend the oil group is an old oil company in one hundred, is not only the domestic oil and gas exploration and exploitation of qualification of one of the four companies, and in addition to "three barrels of oil" only the local oil companies.

Website data shows, prolong oil business involved in oil and gas exploration, processing, storage and transportation, marketing, and mining, new energy and equipment manufacturing, engineering design and construction, etc. There is a wholly owned subsidiary of 31, 27 subsidiary, 20 share company, more than 50 production and business operation entities; Has extended oil international (00346 HK), XingHua shares (5.71, 0.30, 4.99%) (002109 SZ) and extended building (7.020, 0.18, 2.63%) (600248. SH), and other three listed companies.

Since the second half of 2014, the international oil price slump in bluff type and constantly refresh record 10 years, the international crude oil from at the beginning of more than $100 a barrel levels fell to about $30 now. International oil giants, domestic oil companies assets, profits shrinking, "old four" prolong oil life more difficult.

Earnings, according to data from the third quarter of 2015 years ago, prolong oil revenues fell by 4.579 billion yuan, while the cost year-on-year increase of 4.059 billion yuan, a reverse a positive result in the first three quarters to a loss of 535 million yuan from 6.335 billion yuan profit over the same period of last year, while the ownership of its parent company's owners net profit loss of 2.956 billion yuan.

Extend the oil's website, "survival and development is the theme of" on multiple being placed at the top of the news headline, an industry in the winter survival battle has quietly begun. On February 25, prolong oil official release of the group companies push to raise again new austerity measures ", "in order to actively cope with the challenge of low oil prices and energy petrochemical industry facing the grim situation, group company on the basis of a series of cutbacks and measures, the first since group company leadership scale down pay."

21st century business herald reporter for an extension of the internal documents show, slow pay, behind the reduction, the one hundred - year - old oil companies are facing a drop in oil prices, the receivable reduce, capital turnover difficulties such as multiple test.

File said, "about to solve the current funding gap implement salary and wage cuts. In the current oil prices fell, the receivable reduce, capital turnover difficult circumstances, the group company adopt the mode of the combination of slow salary and wage cuts, compensation shall be adjusted to the worker."

Specific measures include: slow pay "beginning in March, the group leadership team members all delayed six months wages, in addition to the total delayed three monthly wages (including bonuses), which involved in the secondary and tertiary oil unit leadership team members delayed 3 months wages (including bonuses) 100%, other employees delayed 3 months wages (including bonuses) 50%."

Cut measures include, "group members of the leadership, authority departments at the leadership team members and its subordinate units on the basis of last year's salary income by 10%, from March 2016 to implement until the end of 2016."

21st century business herald reporters to its verification, prolong oil a propaganda department responsible person said, "the group company have such a (authors) increase the initiative, but the files has not been issued, for a specific file to respond to the reporter."

AnXunSi energy research center director li li to 21st century business herald reporters that extend the oil business is given priority to with the upstream exploration and development, the proportion of downstream business is relatively low. Oil prices tumbled to its performance impact than the downstream business of companies such as sinopec influence is greater. A slow pay cuts measures, can let extend to alleviate the current crisis of capital turnover difficult.

Experts: in 2016, oil prices or still extend shakeouts long-term should be prepared for the winter

Xiamen university boqiang Lin, director of the center for energy economics and energy policy coordination innovation on February 29 in the afternoon, reporter is introduced into the 21st century economy, extend the oil performance losses at present, in addition to a drop in oil prices this factor, also has a few years ago the price high stage, extending to compete with petrochina three barrels of oil, the cause of the rapid expansion and extensive management.

Extension of the oil from 2008 to determine the strategy of "going out", in addition to the acquisition of private oil companies also conducted overseas expansion. "Oil in some overseas m&a is relatively early, the extension of overseas mergers and acquisitions are on high, now the oil price to $30 still to the end, not extended overseas assets has shrunk dramatically, then can not sad?" Boqiang Lin said.

Treasure island, according to prolong oil production cost above $60 a barrel, the cost of production in the problem, lead to extend the oil loss in severe cases. And extend, according to official data in recent 5 years, prolong oil production has remained steady at more than 12 million tons. "The more the more luckily, although 500 million loss than any of the hundreds of billions of assets doesn't consider as what, but with oil prices at $100, compared to high profit margins is very serious."

At the same time, the extension of the oil money demand and debt pressure were the problem. Company in 2016 the second phase of the super prospectus disclosure of short-term financing bonds, in its planning from 2015 to 2019 with a total investment of 260 billion yuan. Makes the huge outlays to extend oil current cash flow can meet the demand for money.

Cash flow nervous, debt has become the important measure to raise money. According to statistics, in 2015, to extend the oil issue 8 sessions of all kinds of bonds and notes in February this year is the issuance of 3 times in a row. Downturn in the market, make the cash collection and cash flow under test, extend the debt pressure is increasing. In the first half of the instruction manual, "by the end of 2015, prolong oil interest-bearing debt balance is RMB 81.021 billion." With bonds issued by the second half of 2015 to February, although have the part of maturing, but the extension of the overall debt is still high.

In order to reduce operating costs and debt pressure, prolong oil since late last year held many times "survival and development is" working conference, and successively offering a "shut down production, streamlining" and other measures to stop bleeding authors.

Last December 28, extend the oil ministry to 19, department number, capacity and number of leadership positions damping are more than 20%. Recently, the extension of the group's oilfield co., LTD will be the original integrated optimization for 22 32 authority departments, compressed streamline 10 departments, fell 31.25%.

After the Spring Festival in the middle of February, prolong oil on the annual work to determine the production target of 12.45 million tons of crude oil in 2016 for the first time and will be shut down part of the well, compared to last year's actual completed 280000 fewer tons of crude oil output. This is the first time the opportunity for five consecutive years to extend the oil cut production targets.

Boqiang Lin said the middle-level leadership takes the lead in wages above 10%, although the decline is not big, but it represents the extended top of determination and attitude. "Do not have too much downstream business, prolong oil upstream assets now can not sell a good price, so extend the oil must be ready to for a long time for the winter." Boqiang Lin said.