CNOOC Q1 Net Profit Doubles, Domestic Oil and Gas Output Jumps

(Reuters) China’s top offshore oil and gas producer CNOOC Ltd saw its net income more than double during the first quarter of 2022 from a year ago, on the back of a surge of global oil prices and an increase in domestic oil and gas production.

The listed arm of the state-backed CNOOC Group reported its revenue rose 74% year-on-year to 90.9 billion yuan ($13.76 billion) over the January-March period, with net income up 132% to reach 34.3 billion yuan, according to a company report filed to the Hong Kong Stock Exchange on Thursday.

Realized oil prices at CNOOC in the first quarter surged 65% from a year ago to $97.47 per barrel and gas prices rose 24% to $8.35 per thousand cubic feet.

Global oil benchmark Brent has jumped more than 30% to $105 a barrel since the beginning of the year, stoked by fears over supply disruption in the absence of Russia cargos.

Continued tight fuel supplies are expected to support refiners’ profits globally. Refining margins in Singapore, a bellwether for profits at export-oriented refineries in Asia, hit an all-time high of $19.12 a barrel in April as Western sanctions-hit Russian supplies while global oil inventories are at multi-year lows. DUB-SIN-REF

CNOOC’s total net production during the period was 151 million barrels of oil equivalent (boe), up 10% year-on-year, with domestic output gaining 15% and overseas output dipping 3%.

China has set targets to raise domestic crude oil production by 5 million tonnes and natural gas output by at least 23 billion cubic meters in 2022, echoing the exhortation of President Xi Jinping that “China’s energy bowl must be firmly held in its own hands”.

Reuters reported that CNOOC is preparing to exit its operations in Britain, Canada, and the United States, because of concerns in Beijing the assets could become subject to Western sanctions. 

The firm started trading on the Shanghai Stock Exchange last week after being forced to delist in the United States on national security grounds. 

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