CNOOC China posts record profit in the first half of 2018 on robust output growth

CNOC, the Chinese offshore oil-and-gas major, posted a record profit for the first half of this year on Thursday. This was largely due to higher oil prices and increased output.

CNOOC reported in a filing to the Hong Kong Stock Exchange that net profit attributable shareholders increased 25% to 79.73 yuan (US$11.19 billion).

CNOOC's oil and gas production increased by 9.3%, to 362.6 millions barrels of equivalent oil. This was due to the expansion of its reserves.

Among the key discoveries made during the reporting period were Lingshui36-1, the first ultra-deepwater field in the South China Sea and the Bozhong26-6 and Penglai9-1 oilfields. CNOOC also announced that it had discovered more than 100,000,000 metric tons of oil and gas at the Bluefin Field in the Stabroek Block, Guyana.

CNOOC said that the Enping 21-4 oilfield broke records for offshore drilling. The company stated in June that the depth of the wells there was over 9,500 metres.

Sales of oil and gas increased by 22%, to 185.11 trillion yuan. The revenue for the six-month period ending June 30 increased by 18% compared to the same period in last year.

The company reported that production costs were $27.75 a barrel of oil-equivalent, down from the $28.20 per barrel in the first half 2023.

CNOOC said that it would also issue an interim dividend, including tax, of 0.74 HKD per share. This is a record-high for the company.

(source: Reuters)