CNOOC Profits Surged, Driven by Robust Oil and Gas Drilling Output

SEATTLE (Oil Monster): CNOOC Limited posted higher earnings during the previous year, mainly driven by robust oil and gas drilling output, which offset weaker prices. Also, the company announced increased dividend payment for the year.

According to a company news release, the net income surged to 137.9 billion yuan in 2024, significantly higher when compared with 123.9 billion yuan the previous year. However, the reported income was short of analysts’ expectations of 144.6 billion yuan. Also, it was a tad lower than the record profit recorded by the company in 2022. However, the full-year dividend witnessed 12% jump to HK$1.40.

The output recorded expansion to 726.8 million barrels of oil equivalent during the previous year, in comparison with 678 million barrels in 2023. The overseas growth was mainly led by boosted supplies from Guyana. The company’s operations delivered sixth year of record production.

The company’s earnings is heavily dependent on global oil prices. However, it appears to be relatively unaffected by challenges to demand faced by downstream peers.

Zhou Xinhuai, Vice Chairman, CNOOC, in a briefing, noted that the company will stick to its three-year output targets through to 2027, with a special focus on pushing gas production. It must be noted that several energy giants have been recently focusing on natural gas to drive growth, despite fall in domestic prices.