...July 31, 2019 HONG KONG (S&P Global Ratings) July 31, 2019--S&P Global Ratings today said it expects the performance of CITIC Resources Holdings Ltd. (##-/Positive/--) to rebound in 2020 on higher oil production after it resumes drilling in late 2019 or 2020. We also assume the price of oil will stay stable at US$60 per barrel for the rest of 2019-2020, well above the company's production cost. The company's weaker year-over-year performance in the first half 2019 will not likely persist in the next 12 months. We attribute the lower profit in first half 2019 to a general softening in commodity prices amid a sluggish global economy and also some temporary factors hampering the company's operations. Lower oil prices during the period have hit CITIC Resources' performance given that the crude oil segment is the key profit contributor to the company. The average Brent price in the first half of the year was US$66.3 per barrel, down from an average of US$71.8 per barrel in 2018. Also, the company's...
