By Chen Aizhu
SINGAPORE (Reuters) -Chinese offshore oil and gas major CNOOC Ltd’s first-quarter net profit fell 7.9%, weighed down by weaker oil prices, though higher output helped stem the decline.
Net income for January-March was 36.56 billion yuan ($5.03 billion), versus 39.7 billion yuan in the same period last year, according to a company filing with the Hong Kong Stock Exchange on Tuesday.
CNOOC, the listed arm of the state oil giant China National Offshore Oil Company, reported a 4.1% fall in revenue to 106.85 billion yuan in the first quarter due to lower oil prices.
Its total net production was 188.8 million barrels of oil equivalent (boe), up 4.8% on the year.
Domestic net output grew 6.2% benefiting from major oilfields such as Bozhong 19-6 in the Bohai Bay, while output from international operations rose 1.9%, lifted by growing output at Brazil’s Mero-2 and others.
CNOOC in January set its 2025 net production target at a record between 760 million and 780 million BOE, or 5.6% to 8.3% above 2024’s levels.
As one of the world’s most cost-efficient offshore producers, all-in production costs for the first quarter were $27.03 a barrel, versus $27.59 in the corresponding period last year.
At an earnings briefing, company President Yan Hongtao said the Trump administration’s trade policies are having a major impact on global oil market, causing a price decline as the market worries about a global economic recession.
However, if oil prices keep sliding, it could create opportunities for lower-cost and cash-rich players like CNOOC to acquire companies that can’t sustain low oil, Yan said.
Separately, CNOOC said it’s expecting a court hearing in May on the arbitration of Guyana oil assets and the company stands ready to defend its best interests.
CNOOC, a minority partner in the Exxon Mobil-led consortium developing lucrative Guyana oilfields, has joined Exxon challenging Chevron’s bid for Hess in court, saying that they have first right of refusal on Hess’s equity in the project.
CNOOC’s first-quarter capital spending amounted to 27.7 billion yuan, down 4.5% on the year.
Its Hong Kong listed shares closed down 1.53% on Tuesday at HK$16.74, having lost 11% so far this year.
($1 = 7.2673 Chinese yuan renminbi)
(Reporting by Chen Aizhu; editing by David Evans and Kim Coghill)
