Cnooc's 2016 Profit Drops 97%

Chinese offshore explorer Cnooc has reported a net profit of yuan 637mn ($92.5mn) for the full year that ended December 31, 2016, 97% lower than yuan 20.25bn recorded in 2015 as oil and gas prices remained low.

The state-owned company’s average realised oil price was $41.40/b, representing a decline of 19.3% on year, while the average realised natural gas price was $5.46/’000 ft³, representing a decline of 14.6% compared with last year, Cnooc said March 23. Oil and gas sales revenue was yuan 121.3bn, down 17.2% on year.

During the year, the company made 14 commercial discoveries and successfully appraised 25 oil and gas structures. As at the end of 2016, its net proved reserves were about 3.88bn barrels of oil equivalent. Cnooc’s net oil and gas production reaching 476.9mn boe.

During the year, the company’s capital expenditures were yuan 49bn, down 26.3% on 2015.

Shardul Sharma