China's CNOOC makes record interim profit on higher oil prices, output

• Net oil and gas production reached a record 398.7 million barrels of oil equivalent, up 3.7%, with crude oil and liquids production increasing 4.8% to 310.3 million barrels
• The company maintained its annual production target of 780-800 million boe and capital expenditure guidance of 112-122 billion yuan, with first-half capex totaling 62 billion yuan
• CNOOC made four new oil and gas discoveries in China including in Bohai Bay, and secured three new exploration blocks in Brazil and Indonesia

Summary: CNOOC Posts Record H1 Profit on Higher Prices and Production

Key Financial Results:

Chinese offshore oil and gas producer CNOOC Ltd reported record first-half net profit of 79.2 billion yuan ($11.2 billion), driven by elevated oil prices and increased production. Oil and gas sales revenue surged 20% to 206.1 billion yuan.

Price Performance:

The company's average realized oil price jumped 23.6% to $85.49 per barrel, attributed to geopolitical tensions including the Iran war. Natural gas prices increased more modestly, rising 1.3% to $8 per thousand cubic feet.

Production Highlights:

Net oil and gas production reached a record 398.7 million barrels of oil equivalent (boe), up 3.7% year-over-year. Domestic Chinese production totaled 275.2 million boe, up 3.3%. Crude oil and liquids production increased 4.8% to 310.3 million barrels, while natural gas output rose 0.2% to 517.3 billion cubic feet.

Costs and Guidance:

All-in costs increased to $29.70 per boe from $28.41 in Q1. CNOOC maintained its full-year production target of 780-800 million boe and capital expenditure guidance of 112-122 billion yuan. First-half capex reached 62 billion yuan.

Expansion Activities:

In China, CNOOC made four new oil and gas discoveries in Bohai Bay and other regions, while successfully appraising 16 oil and gas-bearing structures. Internationally, the company secured three new exploration blocks in Brazil and Indonesia.

Shareholder Returns:

The company declared an interim dividend of HK$0.94 per share.

Market Implications:

The record results demonstrate strong operational performance in a favorable pricing environment, positioning CNOOC well amid global energy demand and geopolitical supply concerns.