CNOOC’s net profit falls

CNOOC Ltd has announced a 56.1% fall in net profit to RMB17.73 billion in the first half of 2015.

The company’s average realised oil price was US$57.53/bbl in the first half of 2015, representing a decline of 45.9% y/y, while the average realised natural gas price rose by 1.7% y/y to US$6.55 per thousand cubic feet. Due to the substantial decline in realised oil prices, CNOOC’s oil and gas sales revenue fell 34.2% to RMB77.03 billion.

For 1H15, CNOOC’s total net oil and gas production reached 240.1 million boe, up 13.5% y/y, primarily due to the production contribution from newly commenced projects in Bohai and the Eastern South China Sea. Production from offshore China rose by 19.1% y/y to 156.3 million boe and production from overseas was 83.9 million boe, up 4.4% y/y. The company’s 2015 full year production target of 475 - 495 million boe remains unchanged.

Mr Li Fanrong, CEO of CNOOC, said: “In the first half of 2015, the company made tremendous efforts to reduce costs and enhance efficiency. As a result of these initiatives, our exploration, development and production activities have maintained stable growth, and major financial indicators remained healthy. In the second half of the year, we will effectively execute the year’s operational strategy under the guidance of the Company’s growth strategy, proactively deal with the adverse environment of low oil prices and ensure that all annual production and operation targets for the year are achieved.”

Edited from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27082015/cnooc-net-profit-falls-1206/