CNOOC reports 2018 reserves, production, profit increase

3/22/2019
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Photo: CNOOC.

HONG KONG -- CNOOC Limited has announced its 2018 annual results for the year ended December 31, 2018.

In 2018, CNOOC Limited expanded its oil and gas reserves and production at a steady pace, strengthened its cost control and achieved remarkable results. Total net oil and gas production of the company achieved 475 MMboe, successfully meeting the annual target set at the year beginning. During the year, the company made 17 commercial discoveries and successfully appraised 17 oil and gas structures. In offshore China, multiple high quality mid-to-large size oil and gas fields, including Bozhong 19-6 and Bozhong 29-6, were successfully appraised. In overseas, 5 new world-class discoveries were made in the Stabroek block in Guyana. CNOOC Limited’s reserve replacement ratio reached 126% and its reserve life improved to 10.5 years. At the end of 2018, the net proved reserves of CNOOC Limited were 4.96 Bboe, reaching a historic high. Therefore, the company’s resource foundation for sustainable development in the future was further strengthened.

In 2018, the company’s average realized oil price was $67.22/bbl, representing an increase of 27.7% year-over-year (YoY). The average realized natural gas price was $6.41/mcfg, representing an increase of 9.8% YoY. In addition, the company’s oil and gas sales revenue was $27.67 billion (RMB 185.9 billion), an increase of 22.4% YoY. The company focused on technological and management innovation to fuel quality and efficiency enhancements, and achieved cost reduction for the fifth consecutive year. In 2018, the company’s all-in cost decreased to $30.39/boe by 6.6% YoY, and maintained its cost competitiveness. Due to higher international oil prices and improvements in cost control, the company’s net profit increased significantly to $7.8 billion (RMB 52.7 billion), representing an increase of 113.5% YoY.

During the year, the company maintained a healthy financial position and had abundant free cash flow. The capital expenditures were $9.32 billion (RMB 62.6 billion).

In 2018, the company’s basic earnings per share was $.018 (RMB 1.18). The Board of Directors has proposed a year-end dividend of $.051 (HK $0.40) per share (tax inclusive).

Mr. Yang Hua, chairman of CNOOC Limited, said: “In 2018, facing the complex external environment, CNOOC Limited focused on high-quality development, and maintained strong cost competitiveness. The Company steadily expanded the oil and gas reserves and production, achieved a significant growth in net profit. In the future, the company will continue to increase oil and gas reserves and production, actively implement low-carbon development strategies, speed up the transformation and upgrading, and continuously create value for shareholders.”

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