CNOOC's first-half profits fall 13% due to lower oil prices
CNOOC, the Chinese offshore oil-and-gas major, reported a 13% drop in its interim net income as lower oil prices countered the impact of record oil and natural gas production.
According to a Hong Kong Stock Exchange filing, the net profit attributable equity shareholders fell to 69.5 billion Yuan ($9.7billion) following a record-breaking interim profit in 2024.
Sinopec, a domestic competitor, reported a 40% drop in earnings at $2.99 billion. PetroChina's net profit fell by 5.4% to $11.7 billion.
CNOOC’s net production of gas and oil increased by 6%, reaching a record of 384.6 million barrels equivalent of oil during the period. Gas was up by 12% on an annual basis.
CNOOC stated that it had "steadily promoted the construction of major project and achieved record high oil and gas production".
The report said that reserve utilisation rates and recovery rates have improved. Meanwhile, the natural decline rate for producing oil and gas offshore China has remained "at a very low level".
CNOOC has made five discoveries off China including Jinzhou 27-6 located in the northern Bohai Sea. It also appraised medium and large oil and gas bearing structures like Qinhuangdao 29, which is also located in the Bohai Sea.
CNOOC began production at the Bozhong 26-6 oilfield phase I in Bohai Bay in north China, the Buzios-7 and Mero-4 projects in Brazil, and phase 2 of the Shenhai-1 Deepwater Gas Project in the South China Sea. CNOOC also said that it increased reserves by advancing deepwater exploration in Guyana, and signed its first contract for oil exploration in Kazakhstan.
In the first half 2025, the revenue from oil and natural gas sales was 171.7 billion Yuan. This is a 7% decrease from the same period in 2018.
CNOOC shares listed in Hong Kong closed Wednesday at HK$18.64, down 1.84%. They are down 2.5% this year and have fallen by 2.5% since the beginning of 2012. The Hang Seng Index is up 25.6%.
(source: Reuters)
