Lower oil prices offset a record-high oil and gas production to drag down the 2025 profit of Chinese oil and gas giant CNOOC from a year earlier and below analyst estimates.
CNOOC Ltd, China’s top offshore crude oil and natural gas producer, on Thursday reported a net profit of $17.7 billion (122.1 billion Chinese yuan) for 2025, down by 11.5% from 2024. The company attributed the decline to “the adverse impact of lower oil prices.”
The 2025 net profit turned out lower than the $18.9 billion (130.7 billion yuan) average of analyst estimates in a Bloomberg survey.
Revenues from CNOOC’s oil and gas sales fell by 5.6% last year from 2024, with oil sales revenues down by 9.1% and natural gas sales up by 16.9%.
While the realized natural gas price was 3% higher, the realized crude oil and liquids price fell by 13.4%, to $66.47 per barrel in 2025, down from $76.75 a barrel for 2024.
The lower realized prices dented the profits, despite the record-high annual production last year.
Related: The Invisible Metals Powering a Trillion-Dollar Economy
CNOOC’s net oil and gas production for 2025 reached a new record high of 777.3 million barrels of oil equivalent (boe), an increase of 7% compared to 2024. Offshore oil and gas has become a critical contributor to China’s reserves and production growth, the company said.
This year, CNOOC plans to further boost its oil and gas reserves and production and build competitive advantages through international expansion. The Chinese major targets annual oil and gas production of between 780 million boe and 800 million boe for 2026.
In the macro outlook for 2026, CNOOC said that “the world faces heightened geopolitical risks and successive waves of regional conflicts, and uncertainty surrounding oil prices is set to increase markedly.”
“Global inflationary pressures increase, economic growth remains weak, and growth divergence among different economies will further intensify,” the Chinese oil and gas giant said.
By Michael Kern for Oilprice.com
More Top Reads From Oilprice.com
- Second Tanker Hit in Weeks as Black Sea Drone Strikes Russian Oil Cargo
- Iran Earning $139 Million a Day From Oil as Hormuz Crisis Locks Out Rivals
- Ukraine Knocks Out 40% of Russia’s Oil Export Capacity in Baltic Drone Strike
