CNOOC Ltd, the listed subsidiary of China National Offshore Oil Corp. (CNOOC), reported last week that its financial performance had improved significantly in 2017.
In a stock exchange filing, the state-owned company said its revenues had climbed to 186.39 billion yuan (US$29.6 billion) in 2017, up by 27.2% on the previous year’s figure of 146.53 billion yuan (US$23.27 billion). It indicated that it had derived most of its 2017 revenues, or 151.89 billion yuan (US$24.12 billion), from crude oil and natural gas sales. This represented a rise of 25.2% on the previous year’s figure of 121.32 billion yuan (US$19.27 billion), it said.
CNOOC Ltd also stated it had earned a net profit of 24.68 billion yuan (US$3.91 billion) last year, marking a nearly 38-fold increase on the 2016 figure of 637 million yuan (US$101 million). In a press release with excerpts from the exchange filing, it attributed the increase “primarily to higher international oil prices and improvements in cost control”.
With respect to cost control, the company explained it had “focused on innovation to fuel quality and efficiency enhancements”. These measures helped bring costs down to US$32.54 per boe, down by 6.2% year on year, the press release noted. They also helped CNOOC Ltd mark the fourth straight year of cost reductions, it said.
Meanwhile, CNOOC Ltd also reported positive developments on the operational side. It said that net oil and gas production had amounted to 470.2 million boe (1.29 million boepd) in 2017. The company did not provide a comparative figure from the previous year, but it did say it had exceeded its target figure for 2017.
It further stated that it had made 19 new commercial discoveries and had successfully appraised 16 oil and gas-containing structures in 2017. These projects helped push the company’s proven reserves up to the record high figure of 4.84 billion boe as of the end of 2017. They also expanded reserve life to 10.3 years and brought the reserve replacement ratio up to 305%.
CNOOC Ltd’s chairman, Yang Hua, expressed satisfaction with his firm’s performance and indicated that his management team would continue to focus on innovation and cost reduction. “In the future, the company will follow the established development strategy and continue to pursue value creation to bring greater returns to shareholders,” he was quoted as saying in the press release.