China CNOOC's net income for the third quarter of 2014 is down 12% due to lower oil prices
CNOOC Ltd, the Chinese offshore oil-and-gas major, reported on Thursday that its third quarter net income had declined 12.2% from a similar period a year ago as lower oil prices globally offset a strong growth in production.
CNOOC reported that its net profit for the period July-September was 32.44 billion Yuan ($4.55billion), in a filing to the Hong Kong Stock Exchange.
Sinopec Corp, a domestic rival, reported a flat third-quarter net profit. However, the company's first-nine-month net income dropped by 3%. CNOOC increased its revenue by 5.7% on an annual basis in the third-quarter to 104.9 billion Yuan. The company also improved cost-competitiveness and boosted output and reserves.
The drop in oil price caused a 3% decline in revenue for oil and gas sales in the third and first quarters.
During the first three-quarters of 2018, oil and natural gas production increased by 6.7%, reaching 578.3 millions barrels equivalent to oil (boe). Natural gas also increased by 11.6%.
The production from China increased at an even faster rate of 8.6% on a year-on-year basis during the nine-month time period, to 400.8 millions boe. Meanwhile, overseas production grew 2.6% to reach 177.4million boe. The company reported that output in North America, UK, Nigeria and Nigeria decreased, but growth in new projects in Guyana, Brazil, and Brazil was fast.
The first three quarters saw capital spending drop 9.8% compared to a year ago due to fewer projects in construction.
The company has made five new discoveries, and assessed 22 oil-and-gas-bearing structures. These include Kenli 10-6 off the coast of Bohai Bay in north China and Lingshui 17,2 in deep water in the South China Sea.
CNOOC started production on 14 new projects in the first nine-month period, including the Kenli 10-2 Oilfield in Bohai bay, the Dongfang 29,1 Gas Project in the South China Sea, and the Yellowtail Project, in Guyana.
CNOOC shares listed in Hong Kong have gained 4.71% so far this year, lagging behind the benchmark Hang Seng Index which has increased by nearly 31.02%.
(source: Reuters)