China’s biggest offshore oil driller said it more than doubled first half profits from a year ago amid a surge in oil and gas prices.
Cnooc Ltd.’s preliminary net income was between 70.5 billion and 72.5 billion yuan ($10.5 billion to $10.8 billion), it said in an exchange filing. The company earned 33.3 billion yuan in the first half last year.
The company, which produces oil and gas offshore China and participates in drilling ventures around the world, benefited from soaring petroleum prices amid a global energy shortage exacerbated by Russia’s invasion of Ukraine. Brent crude averaged about $105 a barrel from January to June, compared with about $65 in the same period in 2021.
“In the first half of 2022, international oil prices rose sharply. The company seized the favourable opportunity, continued to step up efforts in exploration and development, and achieved remarkable results in increasing reserves and production. The company insisted on enhancing quality and efficiency to reduce costs, thereby consolidating the cost competitiveness. Benefiting from the rise in the international oil prices, production growth and cost control, profitability of the first half of the year increased significantly,” noted Cnooc Ltd.
