Mainland China oil major CNOOC posted a better than expected 6.6 per cent profit growth for last year on the back of production cost reduction, lower taxes and exploration expenses.
The mainland’s dominant offshore oil and gas producer had a net profit of 60.2 billion yuan last year, up from 56.5 billion yuan in 2013 and was 14.7 per cent higher than the 52.5 billion yuan average estimate of 24 analysts polled by Thomson Reuters.
Revenue fell 3.9 per cent to 274.6 billion yuan on the back of a 8.2 per cent fall in average oil selling price to US$96 per barrel, partially offset by a 11.4 per cent rise in average gas selling price to US$6.44 per thousand cubic feet.
Net oil and gas output rose 5 per cent to 432.5 million barrels of oil equivalent (boe).
The company’s total production cost per boe was US$42.3, six per cent lower than in 2013.
“In 2015 ... the company will further increase its efforts to establish a long-term system for controlling costs and increasing productivity through innovative changes in management and technology and new development models,” chairman Wang Yilin said in the firm’s results filing to Hong Kong’s stock exchange.
