CNOOC hits a new Q3 profit record with a stunning 9% increase—despite shrinking revenue

China National Offshore Oil Corporation (CNOOC) delivered a record-breaking net profit of CNY36.92 billion ($5.17 billion) in Q3 2024, marking a 9% increase compared to the same quarter in 2023. The company’s focus on production growth, combined with cost efficiency, allowed it to boost profit despite an unexpected 13.5% revenue drop, which stood at CNY99.25 billion ($13.9 billion). This decline is largely attributed to lower oil prices and external market pressures.

Production Surge Fuels Profit Growth

CNOOC’s strategic expansion in oil and gas production significantly contributed to the profit boost. The company reported a robust 7% rise in quarterly production to 179.6 million barrels of oil equivalent (mboe). Domestic production remained a pillar of strength, with notable contributions from key fields like Bozhong 19-6 and Enping 20-4. Overseas output was equally impressive, surging 12.2% year-on-year, bolstered by enhanced production from the Payara project in Guyana. The company’s cumulative output over the first nine months of 2024 reached an impressive 542.1 mboe, marking an 8.5% increase.

Cost Efficiency and Strategic Discoveries

CNOOC maintained cost efficiency, holding its all-in cost per barrel steady at $28.14, enabling the company to maximize returns despite volatile oil prices. The company’s exploration success included nine new discoveries in 2024, notably the Wenchang 10-3 East find offshore China, highlighting untapped potential in the Pearl River Mouth Basin. Additionally, CNOOC’s strategic appraisals of sites such as Caofeidian 23-6 revealed promising future production potential.

CNOOC’s Forward-Looking Plans

Looking to the future, CEO Zhou Xinhuai emphasized the company’s commitment to further expanding its production and meeting annual targets, despite external challenges. He remarked on the dedication of the company’s workforce, noting their role in achieving these record-high production and profit levels.

Expert Viewpoint: How CNOOC Defies Market Challenges

Industry analysts view CNOOC’s strategic emphasis on domestic and international production as a resilient approach amid a fluctuating oil market. Experts suggest that the company’s efficiency in cost control and its proactive approach to exploration are driving long-term value creation, positioning it favorably in the global energy landscape.