China Energy Giant CNOOC 2013 Net Profit Down 11

China Energy Giant CNOOC 2013 Net Profit Down 11%

Chinese state-owned energy giant CNOOC posts a net profit drop of more than 11% for 2013, amid sluggish global and domestic economic growth.

HONG KONG -- Chinese state-owned energy giant CNOOC (IW 1000/111) today posted a net profit drop of more than 11% for 2013, amid sluggish global and domestic economic growth.

Net profit for the 12 months ended Dec. 31, 2013 was 56.46 billion yuan ($9.09 billion), 11.35% less than the previous year's 63.69 billion yuan, CNOOC said in a filing to the Hong Kong stock exchange.

"In 2013, amid complex economic conditions on both domestic and global fronts, the company achieved notable results and significant progress in exploration, development and production, and international development," group chairman Wang Yilin said in the statement.

China's largest offshore oil and gas producer successfully acquired Canada's Nexen (IW 1000/608) for $15.1 billion in February last year.

CNOOC said its revenue increased 15.44% to 285.86 billion yuan, compared to 2012.

"In 2014, the company will further strive to control costs and enhance efficiency," Wang said, adding that the firm faced challenges in areas including production growth and cost structure.

Production Target Exceeded

CNOOC produced 20.2% more oil in 2013 compared with the previous year, at 411.7 million barrels of oil equivalent (BOE), surpassing its annual production target. The company said it would aim to produce 422 to 435 million BOE in 2014.

However, despite decreased net profits, CNOOC's capital expenditure is expected to rise by 14% to 30%, or 105 billion yuan to 120 billion yuan, in 2014, from 92.4 billion yuan in 2013.

Rival Sinopec (IW 1000/333), which saw net profit growth of 3.4%, said it would trim capital expenditure by 4.2% for 2014; and PetroChina (IW 1000/5), which saw net profit growth of 12%, said it would cut expenditure by 7%.

China, the biggest energy consumer in the world and second-biggest consumer of oil, has been snapping up resource assets across the globe in order to fuel breakneck growth.

CNOOC last week announced its first independent deep-water discovery in the South China Sea in the Qionggongnan Basin.

Copyright Agence France-Presse, 2014

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