CNOOC Limited reports 7% growth in reserves and production, posts 11% profit increase

CNOOC Limited has unveiled its 2024 annual financial results, revealing record-breaking growth in reserves and production alongside strong profitability and increased dividends. The company, listed on both the Hong Kong and Shanghai stock exchanges, has continued to expand its domestic and international oil and gas footprint, securing new reserves while improving efficiency through advanced offshore technology.

Despite a challenging global economic landscape and fluctuating energy prices, CNOOC Limited successfully navigated market volatility, reinforcing its position as a key player in the global energy sector. The latest financial results indicate a 7.2% year-on-year (YoY) increase in net oil and gas production, with output reaching 726.8 million barrels of oil equivalent (BOE).

What Factors Drove CNOOC Limited’s Profit and Dividend Growth?

CNOOC Limited’s ability to boost net profit by 11.4% YoY to RMB137.9 billion was largely driven by its value-focused exploration strategy, cost efficiency measures, and expansion of high-yield projects.

Oil and gas sales for the year totaled RMB355.6 billion, reflecting strong demand and improved production efficiency. The company reduced its all-in production costs to US$28.52 per BOE, down 1.1% YoY, reinforcing its cost-competitive advantage in the sector.

To reward investors, the board raised the full-year dividend to HK$1.40 per share (tax inclusive), marking a 12% increase from the previous year. This aligns with CNOOC Limited’s long-term commitment to maintaining stable and high-yielding dividends, a strategy that has made it an attractive choice for income-focused investors.

How Did CNOOC Limited Expand Its Oil and Gas Reserves in 2024?

Exploration remained a core focus for CNOOC Limited, leading to significant new hydrocarbon discoveries. By the end of 2024, the company’s net proved reserves had grown to 7.27 billion BOE, an increase of 7.2% YoY, ensuring a reserve life of 10 years—a key indicator of long-term sustainability in the energy sector.

The company successfully appraised 30 new oil and gas structures and made 11 major discoveries, strengthening both domestic and overseas reserves. Notable domestic discoveries included Longkou 7-1, Qinhuangdao 29-6, Huizhou 19-6, and Lingshui 36-1, which are expected to contribute significantly to China‘s offshore production.

Internationally, CNOOC Limited extended its presence across Mozambique, Brazil, and Iraq, securing 10 new exploration blocks. The company’s strategy to expand in the Atlantic rim and Belt and Road regions is a continuation of its global diversification efforts, aimed at mitigating domestic production risks and ensuring a stable long-term supply.

How Have Offshore Innovations Strengthened CNOOC Limited’s Operations?

CNOOC Limited has prioritized technological innovation to maximize efficiency and reduce operational costs. The company launched Asia’s first cylindrical Floating Production Storage and Offloading (FPSO) vessel, Haikui-1, alongside the region’s tallest deepwater jacket platform, Haiji-2. This combination has created a new model for deepwater oil and gas field development, improving cost-effectiveness and extraction efficiency.

Additionally, CNOOC Limited’s digital transformation strategy has enhanced operational capabilities, integrating automated processes across its offshore platforms. The deployment of smart oil and gas fields, including Shenhai-1 and Qinhuangdao 32-6, has increased the unmanned rate of offshore platforms, improving safety and efficiency.

Standardized engineering and construction practices accelerated project development, with several key projects being commissioned ahead of schedule. This proactive approach has positioned CNOOC Limited as a leader in offshore energy infrastructure, setting benchmarks for future deepwater projects.

What Role Does Green Energy Play in CNOOC Limited’s Strategy?

CNOOC Limited has taken notable steps toward a greener future, integrating renewable energy projects and carbon reduction initiatives into its portfolio. In 2024, the company utilized 760 million kilowatt-hours of green electricity, facilitated by the full operation of the Bohai onshore power project.

A significant milestone in its renewable energy transition was the launch of the world’s first 16-megawatt tension-leg floating wind power platform, with a projected annual power generation capacity of 54 million kilowatt-hours.

Additionally, CNOOC Limited continued its carbon capture and storage (CCS/CCUS) projects, particularly the Daya Bay CCS/CCUS cluster research initiative. The company also progressed on two offshore CCUS bases in the Bohai Sea and Hainan, reinforcing its commitment to achieving carbon neutrality and negative emissions in the long run.

How Has CNOOC Limited’s Stock Performed, and What Is the Market Outlook?

CNOOC Limited’s financial and operational strength has translated into solid stock performance. As of March 26, 2025, the company’s stock closed at HK$18.40, marking a 5.99% increase from its 52-week low of HK$16.70.

Market analysts hold an overwhelmingly bullish outlook on CNOOC Limited’s stock. Of the 18 analysts covering the stock, 17 have issued a “Buy” rating, while only one has suggested a “Sell.” The average 12-month price target stands at HK$22.42, indicating a potential upside of approximately 20.92% from current levels.

CNOOC Limited’s low valuation multiples, including a P/E ratio of 5.77 and a P/B ratio of 1.14, suggest the stock remains undervalued relative to its peers. Furthermore, its high dividend yield of 7.61% makes it a strong choice for long-term investors seeking stable returns.

What Does the Future Hold for CNOOC Limited?

Beyond financial performance, CNOOC Limited has remained committed to corporate social responsibility, creating over 22,000 jobs in 20+ countries. Its local workforce initiative in Uganda was recognized in the Fifth Global Solicitation on Best Poverty Reduction Practices Campaign, reflecting its efforts to support economic development in emerging markets.

Looking ahead, Chairman Wang Dongjin has reaffirmed the company’s commitment to expanding reserves, enhancing efficiency, and delivering stable returns to investors. With a strong exploration pipeline, continued technological advancements, and strategic cost management, CNOOC Limited is well-positioned to capitalize on future energy demand and market opportunities.

As the global energy landscape continues to evolve, CNOOC Limited’s ability to balance traditional oil and gas production with renewable energy investments will be a key factor in its long-term success.