CNOOC, China's dominant offshore oil and natural gas producer, unveiled a 37.6 per cent jump in first-half net profit, driven by higher oil prices and rising production.
The Hong Kong-listed unit of the nation's third-largest oil company said net profit climbed to 16.27 billion yuan in the first six months from 11.82 billion yuan a year ago.
The results exceeded expectations by 3 per cent, according to the average forecast of eight analysts polled by the South China Morning Post. Its growth rate surpassed that of far larger rivals PetroChina, up 29.4 per cent, and China Petroleum & Chemical Corp (Sinopec), which gained 8.92 per cent.
Turnover surged 47.2 per cent to 48.34 billion yuan as oil output rose 5.8 per cent to 68.3 million barrels and gas output grew 16.4 per cent to 77.6 billion cubic feet.
The company realised an average oil selling price of US$62.39 a barrel, up 42.1 per cent, while its average gas price climbed 7.6 per cent to US$3.17 per thousand cubic feet.
Total production costs, including depreciation, amortisation, and sales and administration expenses, rose 18.96 per cent to US$13.99 a barrel.
'Every company in the industry is under cost pressure in today's operating environment, with sharp rises in raw material, cement and steel prices all posting big challenges,' chief financial officer Yang Hua said. He declined to give guidance on the outlook for second-half costs.
