Low oil price eats into CNOOC Ltd’s first quarter profit



The low oil price has taken a toll on the first quarter 2023 net profit of Chinese offshore operator CNOOC Ltd.

The company said that net profit during the period fell to 32.1 billion yuan ($4.65 billion), down by 6.4% year-on-year.

During the three months ended 31 March, the crude selling price dived by 23.9% from $97.47 per barrel to 74.17 per barrel. CNOOC Ltd’s revenues earned from crude sales dropped 13.6% to 63.283 billion yuan.

However, the company said its efforts to ramp up production and cut costs had increased its quarterly revenue by 7.5% to 97.7 billion yuan.

CNOOC Ltd’s hydrocarbon production jumped by 8.6% year-on-year to 163.9 million barrels of oil equivalent, including 115.3 million boe produced from China, up 5.5% as a result of production from newly commissioned oilfields in the Bohai Sea and the South China Sea.

Overseas production increased by 16.6% to 48.6 million boe, because of increased production from Guyana and Brazil.

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During the first quarter of 2023, the company made two discoveries and appraised six oil and gas structures.

In those three months, the all-in cost fell by 7.7% to $28.22 per boe, while capital expenditure during the period increased 46.1% year-on-year to 24.736 billion yuan.

The company said it expects to use 500 million kilowatt hours of green electricity to power oil and gas production this year, which will reduce carbon emissions by 400,000 tonnes.

Company chief executive Zhou Xinhuai said: “In the first quarter, CNOOC Limited made a good start for the year with steady growth in oil and gas production while keeping effective control over cost.

“We will stay focused on our annual targets, press ahead with the tasks and deliver better results to bolster the high-quality development of the company.”