(Bloomberg) — Cnooc Ltd. posted an increase in third-quarter revenue after the corporate offset decrease crude oil costs with elevated output.
China’s largest offshore oil and fuel driller mentioned web earnings rose 9% to 36.9 billion yuan ($5.2 billion), from 33.9 billion yuan final yr, based on an announcement on Monday. The rise got here regardless of a 14% hunch in income to 99.3 billion yuan.
Brent crude costs, in the meantime, averaged round $79 a barrel over the quarter, about 8% decrease than the identical interval in 2023 — a drop triggered partly by weak demand in China. That pressured the corporate to maintain capital expenditure in examine, which fell 2.2% to 32.2 billion yuan.
Cnooc is geared largely to extraction, and in contrast to its greater rivals PetroChina Co. and Sinopec, has little publicity to China’s faltering refining sector. However worldwide costs are closely influenced by financial circumstances on this planet’s largest oil importer, which in flip has a serious bearing on the corporate’s profitability.
Beijing’s current steps to stimulate the economic system are being carefully watched for his or her influence on uncooked supplies markets. Chief Monetary Officer Wang Xin advised a briefing that she expects the federal government’s measures could have a optimistic influence on China’s oil demand, with out elaborating.
The state-owned agency has a distinguished position in elevating output to satisfy Beijing’s targets for power safety, a job that has taken on ever larger significance because the geopolitical panorama turns into extra unsure. Manufacturing within the third quarter rose to 179.6 million barrels of oil equal, from 167.9 million barrels final yr.
Within the first half, Cnooc and its father or mother contributed over 80% of China’s oil provide development because the nation faucets underdeveloped offshore fields to chop its import invoice. The corporate additionally continues to push for oil additional afield, profitable 4 concessions in Brazil earlier this month.
However its abroad growth hasn’t come with out controversy, and the Chinese language agency is embroiled in a struggle between western oil majors over a prolific discovery off the coast of Guyana.
