CNOOC 2013 net profit falls

China’s CNOOC Limited saw its net profit for the full year 2013 slide to 56.5 billion yuan.

In 2013, the Company continued to increase its investment in exploration. 18 new discoveries were made and 20 oil and gas structures were successfully appraised by the Company.

As at the end of 2013, the Company owned net proved reserves of approximately 4.43 billion barrels of oil equivalent (“BOE”). The reserve replacement ratio of the year amounted to 327%.

In 2013, the Company exceeded its production target set at the beginning of the year. The net oil and gas production reached 411.7 million BOE, representing a 20.2% increase year-over-year (“yoy”), with 60.8 million BOE contributed by Nexen. During the year, a total of 7 new projects commenced production in succession, and Liuhua 19-5 has also come online in early 2014.

Net profit down

In 2013, the Company’s average realized oil price was US$104.60 per barrel, representing a decrease of 5.3% yoy, and the Company’s average realized gas price was US$5.78 per thousand cubic feet, representing an increase of 0.2% yoy. In addition, the Company’s oil and gas sales revenue reached RMB226.45 billion, representing an increase of 16.3% yoy, and net profit amounted to 56.46 billion yuan versus 63.7 billion yuan in 2012.

During the period, the Company’s all-in cost was US$45.02 per BOE, representing an increase of 26.0% yoy, mainly attributable to the relatively high cost of Nexen’s assets and the new projects.

Including RMB15.67 billion of Nexen’s spending, the Company’s capital expenditures reached RMB92.43 billion in 2013.

As for overseas development, with the successful completion of the acquisition of Nexen in February 2013, the Company has embarked on a new phase of international development. To date, the integration of the two entities has progressed smoothly and the overall progress met the Company’s targets. In addition, the Company has successfully entered into the production sharing contract for the Libra oil field located in the Santos Basin in Brazil. 

Li Fanrong, CEO of the Company, said, “In 2013, CNOOC Limited made steady progress in all production and operational activities while stepping up the pace of its international development. While working hard to achieve various targets for the year 2014, we will maintain a long-term vision and seize the right opportunities to fully promote the Company to a new phase of development.”

In 2013, CNOOC’s basic earnings per share reached RMB1.26. The Board of Directors has proposed a year-end dividend of HK$0.32 per share (tax inclusive).

Wang Yilin, Chairman of CNOOC Limited, said, “In 2013, the Company undertook various activities under its ‘New Leap Forward’ strategic roadmap, achieving notable results and significant progress in exploration, production as well as international growth. We will adhere to carrying out innovation and reforms and seeking long-term progress in order to create further value for our shareholders.”