China's CNOOC Posts Record First-Half Profit

Chinese offshore oil and gas major CNOOC posted a record first-half net profit on Wednesday, as higher oil prices driven by the Iran war and rising production boosted earnings.

Net profit attributable to shareholders rose 23.4% to 85.8 billion yuan ($12.9 billion) from 69.5 billion yuan a year earlier, according to a filing with the Hong Kong Stock Exchange.

Oil and gas sales revenue jumped 20% to 206.1 billion yuan.

The company's average realized oil price rose 23.6% to $85.49 per barrel during the period, while its average realized gas price increased 1.3% to $8 per thousand cubic feet.

Net oil and gas production rose 3.7% to a record 398.7 million barrels of oil equivalent (boe), including 275.2 million boe produced in China, up 3.3%.

Crude oil and liquids production increased 4.8% to 310.3 million barrels in the first six months of the year, while natural gas output edged up 0.2% to 517.3 billion cubic feet.

CNOOC's all-in cost rose to $29.70 per boe in the first half from $28.41 in the first quarter.

The company maintained its annual production target of 780 million to 800 million boe and capital expenditure guidance of 112 billion to 122 billion yuan. First-half capex totalled 62 billion yuan.

In China, CNOOC made four new oil and gas discoveries, including Luda 16-1 and Qinhuangdao 30-3 in the Bohai Bay, and successfully appraised 16 oil- and gas-bearing structures, including Wenchang 19-3 in the Pearl River Mouth Basin.

The company said its onshore unconventional gas reserves continued to grow.

Outside China, CNOOC secured three new exploration blocks in Brazil and Indonesia.

CNOOC declared an interim dividend of HK$0.94 per share, the highest since its listing.

CNOOC's Hong Kong-listed shares closed down 0.8% at HK$24.92, but are up 17% this year, outperforming peer Sinopec, whose shares have gained 0.9%, and broadly in line with PetroChina's 18.38% rise. The benchmark Hang Seng Index has been little changed over the same period.

(Reuters - Reporting by Sam Li and Aizhu Chen. Editing by Mark Potter)

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