Output rise boosts CNOOC’s profits

CNOOC, China21 August 2013, News Wires – State-run China National Offshore Oil Corporation, CNOOC, saw profits rise during the first half of the year on the back of increased production.

Net profit for the first six months of 2012 totalled 34.4 billion yuan ($5.6 billion), up 7.9% on the nearly 31.9 billion yuan profit booked during the same period last year.

The rise in profits came as revenue rose 17.6%, year-on-year, from 95.7 billion yuan in the first half of 2012, to 110.8 billion yuan this year.

Helping drive up revenue was a 23.1% increase in production to 198.1 million barrels of oil equivalent, up from 160.9 million boe produced during the first half of 2012.

CNOOC attributed part of the rise to its acquisition of Canadian company Nexen earlier this year, however even without Nexen’s production output still would have still grown 7.7%.

The rise in production helped offset a fall in oil prices, with the company’s average realised price falling 10.9% to $104.20 per barrel in the first half of 2013.

“During the first half of the year, the company has made smooth progress in the areas of exploration, development and production as well as overseas development, maintaining a sound financial position and satisfactory results in all areas of our business,” CNOOC chief executive Li Fanrong said.

“For the second half of the year, we will continue to enhance our businesses in a meticulous and conscientious manner.”

– Upstream

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