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CNOOC earnings surge to record 30.9b yuan

Carol Chan

Updated at 6.11pm: CNOOC, China's dominant offshore oil and gas producer, on Thursday said net profit surged 22.1 per cent to a record 30.93 billion yuan last year on the back of high oil prices and increased production volume.

The earnings were slightly better than the consensus forecast of 30.32 billion yuan from Thomson First Call survey of 23 analysts but typhoon damage at its South China Sea field meant the growth in gains was the smallest since 2002.

Turnover amounted 88.95 billion yuan, up 28 per cent from 69.45 billion yuan a year earlier.

CNOOC declared a final dividend of 14 fen per share, up from 10 fen a year earlier.

The Beijing-based company produced 167 million barrels of oil equivalent (boe) last year, representing a 7.9 per cent year-on-year increase, including 136 million barrels of oil and 179 billion cubic feet of natural gas. The figure was lower than a target of 168 boe to 170 million boe indicated a year earlier as a typhoon destroyed facilities at the Liuhua oilfield.

Its average realised oil price last year was US$58.9 per barrel, representing an increase of 24.5 per cent year on year.

Last year, the company's exploration activities led to 10 oil and gas discoveries, including the first deepwater find offshore of China.

During the year, the firm realised a reserve replacement ratio of 199 per cent and increased net proved reserves 332 million boe. As at the end of last year, it has accumulated net proven reserves of 2.53 billion boe.

CNOOC management had earlier projected an output of 162 million to 170 million boe this year as it will still be affected by Liuhua's being off line, while the delay of the Panyu 30-1 gas field coming on stream due to partial deformation in parts of an underwater structure also affected its expected output.

But management has forecast output of at least 190 million boe next year, when 10 projects are due to start production.

'While our production growth for this year might be flat, we are actually building a mighty force and creating conditions to accelerate our growth for next phase,' chairman Fu Chengyu said.

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