CNOOC Warns of H1 Loss for the First Time in More than a Decade

China National Offshore Oil Corporation (CNOOC) on Friday warned that it is likely to post a loss in the first half for the first time in more than a decade.

The company said it expects to report a loss of 8 billion yuan ($1.2 bn) for the first six months of 2016 compared with a profit of 14.733 billion yuan in the same period last year.

Continued sluggishness in crude oil prices remains the primary reason for the loss, the company stated.

CNOOC said another reason for the loss is that write-downs and provisions have been identified, including the carrying amount and the reduction of certain oil and gas assets in Canada's oil sands assets, including the recoverable amount. 

The company has yet to finalise the interim results for the six months ended June 30, 2016.

In 2015, CNOOC posted net profit of 20.25 billion yuan, representing a decline of 66.4% over the previous year.