(CBN - Global)March 30 -- Sharp declines in crude prices have led to company-wide salary cuts at China's biggest oil and gas producer PetroChina Co. [SHA:601857]. PetroChina President Wang Dongjin's annual salary was cut to CNY734,000 (USD113,000) from CNY1,137,000 last year and employees' average annual income fell to CNY130,000, the company's 2015 annual report shows.
PetroChina's full-year net profit for 2015 plunged 66.9 percent to CNY35.517 billion (USD5.48 billion) from a year ago, the lowest level in 16 years.
Crude oil prices have slipped below Chinese producers' USD40 per barrel output costs since the second half of 2014. As a result, oil companies have sought to cut expenses to increase earnings. State-owned China National Offshore Oil Corp. (CNOOC) [NYSE:CEO] said last year that it would stop paying bonuses.
Both PetroChina and CNOOC announced cuts in production last year, and China Petroleum and Chemical Corp. [SHA:600028] closed four smaller oilfields at its Shengli oilfield in February this year.