Cnooc Ltd., China's largest offshore oil driller, reported a significant increase in its first-half profit, reaching 73.5 billion yuan ($10.1 billion). This marks a 28% rise compared to the 57.4 billion yuan recorded in the same period last year. The surge in profit is primarily attributed to elevated global crude prices, which were boosted by the ongoing conflict in the Middle East, coupled with the company's increased oil and gas production.
Oil prices experienced a substantial increase during the first half of the year, with Brent crude averaging $89 a barrel, up from $71 in the prior year. This favorable market condition allowed Cnooc to capitalize on its expanded output, with total oil and gas production rising to 365 million barrels of oil equivalent (boe) from 330 million boe a year earlier. This robust performance follows a period of mixed results for the company, as seen in previous quarters.
In the first quarter of 2026, Cnooc's net income rose to 39.14 billion yuan ($5.7 billion) from 36.6 billion yuan a year prior, benefiting from the rising crude prices driven by the Middle East conflict. However, Cnooc had reported a decline in net income for the full year 2025 to 122.1 billion yuan ($17.7 billion) from 137.9 billion yuan in 2024, due to lower oil prices offsetting increased production. Similarly, its first-half 2025 profits also slipped to 69.5 billion yuan ($9.7 billion) from 80 billion yuan a year earlier, as Brent crude averaged $71 a barrel compared to over $83 in the first half of 2024.
The current strong performance of Cnooc contrasts with the situation faced by other energy giants. For instance, Sinopec, another major Chinese oil company, reported a 19.3% year-on-year growth in its first-half profit for 2026, despite the Iran war and falling demand in some segments, primarily due to strong refining segment performance. Meanwhile, Saudi Aramco saw a 33% increase in its second-quarter profit for 2026, reaching $33.4 billion, also benefiting from war-driven oil price surges.
