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CNOOC posts record Q1 revenue on greater oil rates, output growth

Chinese nationwide oil and gas explorer CNOOC Ltd's firstquarter internet profit rose 24% to a record, driven by greater understood oil prices and output growth.

Net income for January-March rose to 39.7 billion yuan ($ 5.48 billion) from 32.1 billion yuan in the same duration last year, according to the business's filing with the Hong Kong Stock Exchange on Thursday.

The revenue dive for upstream-focused CNOOC follows a 6.2%. increase in understood oil rates in the first quarter versus the. previous year.

The listed arm of the state-backed CNOOC Group reported a. 14.1% increase in profits to 111.5 billion yuan in the first. quarter.

CNOOC's overall net production during the period was 180.1. million barrels of oil equivalent (boe), up 9.9% on in 2015.

Domestic output increased by 6.9% while output from the. business's global operations increased by 16.9%, lifted by. greater production in Guyana and Canada.

The company in January lifted its 2024 production target by. about 8% to a record 700 million to 720 million boe, while. raising the yearly capital spending target to new highs.

The business prepares capital spending of between 125 billion. yuan ($ 17.44 billion) and 135 billion yuan this year,. possibly surpassing the previous record of 128 billion yuan in. 2023, to further support reserves and production development.

CNOOC continues to invest heavily in offshore production in. the Bohai Bay off eastern Shandong province, which has been one. of the main motorists of China's increasing oil output in recent. years.

As one of the world's most affordable manufacturers, all-in. production costs for the very first quarter stood at $27.59 per. barrel, down from $28.20 per barrel in the exact same duration last. year.

Capex increased 17.3% to 29.01 billion yuan.

The business's reserve replacement ratio will not be lower. than 130% this year, CNOOC's CFO Wang Yufan said in January.

(source: Reuters)