Chinese state-held oil and gas giant CNOOC booked lower net profit for the first quarter of 2025 as lower oil prices more than offset increased production.
CNOOC, which specializes in offshore oil and gas developments in China and internationally, reported on Tuesday a net profit attributable to equity shareholders of $5 billion (36.56 billion Chinese yuan) for the first quarter, down by 7.9% compared to the same period of 2024. The decline was attributed to lower realized oil prices.
During the quarter, CNOOC’s average realized oil price was $72.65 per barrel, down by 7.7% year-over-year, while the average realized gas price increased by 1.2%.
Total net production rose thanks to the ramp-up of domestic and international projects. CNOOC’s production increased by 4.8% on the year to 188.8 million barrels of oil equivalent (boe), with output in China up by 6.2%, thanks to increased production from the Bozhong 19-6 field, and overseas net production up by 1.9%, driven by production growth from projects such as Mero 2 in Brazil.
Early this year, CNOOC kept its capital expenditure flat compared to 2024 as it lowered its oil and gas production growth target, although it still expects annual output records going forward.
Despite the fact that the production targets for 2025-2027 are now lower than the previous goals communicated to the market a year ago, CNOOC continues to expect its oil and gas production to keep setting all-time high annual records in the period through 2027.
CNOOC’s results released today showed the impact of the lower oil prices in the first quarter on China’s state giants. China Petroleum and Chemical Corporation, or Sinopec, reported on Monday a 27.6% slump in its first-quarter profit, on the back of lower oil prices and weaker fuel demand.
PetroChina, however, booked a higher net profit as its higher domestic gas output and sales offset the weaker oil prices.
By Charles Kennedy for Oilprice.com
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