CNOOC profit hits record 40b yuan

Chinese national oil and gas explorer CNOOC's first-quarter net profit surged 24 percent to a record, driven by higher realized oil prices and output growth.

Net income rose to 39.7 billion yuan (HK$42.74 billion) from 32.1 billion yuan a year ago, according to the company's filing with the Hong Kong Stock Exchange yesterday.

The profit jump for upstream-focused CNOOC follows a 6.2 percent increase in realized oil prices.

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

CNOOC's total net production during the period was 180.1 million barrels of oil equivalent, up 9.9 percent on last year.

Domestic output rose by 6.9 percent while output from the company's international operations increased by 16.9 percent, lifted by higher production in Guyana and Canada.

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

It plans capital spending of 125 billion yuan to 135 billion yuan this year, potentially exceeding the previous record of 128 billion yuan in 2023, to further support reserves and production growth.

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

As one of the world's most cost-efficient producers, all-in production costs for the first quarter stood at US$27.59 per barrel, down from US$28.20 a year ago.

Capex increased 17.3 percent to 29.01 billion yuan.