CNOOC Ltd Reports Decrease in First-Quarter Net Profit

SINGAPORE: CNOOC Ltd, a prominent Chinese offshore oil and gas entity, experienced a 7.9% decline in net profit during the first quarter. This downturn was primarily influenced by softened oil prices, although increased production partially mitigated the impact.

According to the company’s filing with the Hong Kong Stock Exchange on Tuesday, net income for the period spanning January to March totaled 36.56 billion yuan ($5.03 billion). This figure contrasts with the 39.7 billion yuan reported during the corresponding period of the previous year.

The listed division of China National Offshore Oil Company (CNOOC), a state-owned oil giant, declared a 4.1% decrease in revenue, amounting to 106.85 billion yuan for the first quarter. This dip in revenue occurred despite enhanced output volumes.

CNOOC Ltd’s overall net production for the quarter reached 188.8 million barrels of oil equivalent (boe), marking a 4.8% increase compared to the prior year.

Domestic net production saw a 6.2% rise, bolstered by key oilfields such as Bozhong 19-6 in Bohai Bay. Concurrently, output from the company’s international ventures grew by 1.9%, propelled by escalating production at Brazil’s Mero-2, among other projects.

In January, CNOOC established its net production target for 2025 at a record range of 760 million to 780 million boe. This projection signifies an increase of 5.6% to 8.3% relative to the levels observed in 2024.

Being recognized as one of the world’s most efficient offshore producers in terms of cost, the all-in production costs for the first quarter were $27.03 per barrel, compared to $27.59 in the same period last year.

Capital expenditure for the first quarter totaled 27.7 billion yuan, reflecting a 4.5% decrease year-on-year.