CNOOC’s Profits Decline by 12.6% in 2023 Following Record-Breaking 2022.
Chinese energy giant CNOOC Ltd (0883.HK) reported a 12.6% decrease in net income for 2023 compared to its record-high earnings in the previous year. This decline was attributed to lower hydrocarbon prices, although the company’s emphasis on cost management and reserve expansion helped alleviate the impact.
In its filing to the Hong Kong Stock Exchange on Thursday, the state-controlled offshore oil and gas specialist disclosed a net profit of 123.8 billion yuan ($17.20 billion).
Despite the profit decline, CNOOC witnessed a significant 8.7% increase in oil and gas output, reaching 678 million barrels of oil equivalent (boe), exceeding its target range of 650 million to 660 million boe. Renowned for its cost-effective exploration and production practices, the company managed to reduce its all-in production cost to $28.83 per barrel from $30.39.
Capital expenditure surged by 37% to a record 137.35 billion yuan, reflecting CNOOC’s dedication to investment amid market challenges.
CNOOC also reported an upturn in net proven reserves to approximately 6.78 billion boe by the end of 2023, maintaining a reserve life of over 10 years for the seventh consecutive year. Impressively, the company’s reserve replacement ratio stood at 180%.
Related Posts
A significant contributor to China’s domestic oil production growth, CNOOC announced notable discoveries in 2023, including the deepwater Kaiping South Oilfield in the Pearl River Delta and Qinhuangdao 27-3 off Bohai Bay, each with 100 million tons of oil equivalent proved in place. These discoveries underscore the company’s success in navigating complex geological challenges.
Looking forward, CNOOC aims to prioritize increasing reserves and production in 2024, with a heightened focus on gas exploration. The company anticipates steady growth in both reserves and production levels.
CNOOC’s Hong Kong-listed shares closed with a 0.77% gain prior to the earnings release, marking a year-to-date increase of 40.15%, outperforming the benchmark Hang Seng Index (.HSI), which experienced a 1.08% decline during the same period.
