CNOOC tightened cost controls after profits dived on oil-price slump
CNOOC, China’s dominant offshore oil and gas producer, announced a 66.4 per cent drop in net profit for last year on slumping oil prices and said cost controls on new projects had been tightened.
CNOOC, China’s dominant offshore oil and gas producer, announced a 66.4 per cent drop in net profit for last year on slumping oil prices and said cost controls on new projects had been tightened.
“We have established a system to streamline our cost structure in the long-term, laying a solid foundation to deal with the risk of continuing low oil prices,” Yang said in a filing to Hong Kong’s stock exchange after market close on Thursday.
Net profit was 20.25 billion yuan last year compared with 60.2 billion yuan in 2014. It was still above the 18.3 billion yuan average estimate of 21 analysts polled by Thomson Reuters.
Revenue dropped 37.6 per cent to 171.44 billion yuan, as average oil prices fell 46.6 per cent to US$51.27 a barrel. The company had a 14.6 per cent rise in oil and gas output, to 495.7 million barrels of oil equivalent (boe).
Its ‘all-in’ production cost — inclusive of asset depreciation and other fixed costs — fell 5.9 per cent to US$39.82 a boe from US$42.3 in 2014, which in turn was 6 per cent lower than in 2013.