Cnooc Ltd., China's largest offshore oil driller, reported a significant dip in its first-half 2025 profits. Net income for the period was 69.5 billion yuan ($9.7 billion), a decrease from 80 billion yuan recorded in the same period of 2024. This 13% decline was attributed to a substantial drop in global oil prices, with Brent crude averaging approximately $71 a barrel from January to June 2025, down from over $83 a barrel during the corresponding period in 2024. Muted demand in Cnooc's domestic market also contributed to the profit reduction.
Despite the decrease in profitability, Cnooc demonstrated resilience in its operations. The company saw a 6.1% year-on-year increase in net production, reaching 384.6 million barrels of oil equivalent (BOE), with both domestic and international production achieving record highs for the period. Natural gas production surged by 12.0% year-on-year. Cnooc actively managed costs, maintaining an all-in cost of $26.94 per BOE, which remained flat compared to the previous year. The company's oil and gas sales revenue reached 171.7 billion yuan.
Cnooc continued its development projects, successfully commencing production at 10 oil and gas field projects, including Bozhong 26-6 Oilfield Development Project (Phase I) and the Buzios7 and Mero4 projects in Brazil. The Dongfang 29-1 Gas Field Development Project also began production, and the Shenhai-1 Phase II Natural Gas Development Project is expected to boost "Shenhai-1" to over 4.5 billion cubic meters of natural gas per annum, making it China's largest offshore gas field. The company declared an interim dividend of HK$0.73 per share (tax inclusive).
