Hong Kong: Chinese state-owned energy giant CNOOC Thursday said its first-half net profit fell 2.3 percent year-on-year, despite increased oil production.
Net profit for the six months to June 30 was 33.59 billion yuan (USD5.47 billion), down from 34.38 billion yuan in the same period a year earlier, China`s largest offshore oil and gas producer said in a filing to the Hong Kong stock exchange.
Net production of oil and gas was up 6.8 percent to 211.6 million barrels of oil equivalent (BOE), from 198.1 million BOE in 2013, but revenue was down by 0.16 percent to 138.80 billion yuan for the period, compared to 139.03 billion yuan in the previous year.
"During the first half of 2014, the world`s economic growth continued to improve slowly. The Chinese economy gradually stabilised," chairman Wang Yilin said in the filing, adding the company achieved "satisfactory results".
"There still exist uncertainty and challenges in the external environment for the company`s business development in the second half of the year," CNOOC`s chief executive officer Li Fanrong said in the statement.
Li said factors such as typhoons could adversely affect the company`s performance and difficulties in cost controls "should not be underestimated".
In February of last year, the oil company completed a USD15.1 billion purchase of Canada`s Nexen energy company, a move data analyst Dealogic described as China`s largest foreign investment.
Li said CNOOC continued to integrate Nexen and that its subsidiary`s oilfield in the North Sea off Britain and oil sands project in Canada met the company`s expectations.
The energy giant`s net profit for 2013 dropped more than 11 percent, amid sluggish global and domestic economic growth, it said in March.
Chinese oil giant Sinopect said Friday its net profit for the same period was up 7.5 percent year-on-year, helped by improved refining margins.
China in March of last year introduced reforms to fuel pricing more in line with international market standards, giving more room for oil companies to set prices closer to market rates.
