CNOOC Ltd., a unit of China’s largest offshore oil producer, said earnings more than doubled in the first quarter after crude prices rebounded and domestic demand has risen sharply. Sales rose to 30.5 billion yuan (4.46 billion dollars) of 13.95 billion yuan during the same period last year, according to a company statement released in Beijing based on the exchange of Hong Kong today. CNOOC did not provide a figure the company quarterly profit reports than half and full year earnings.
The average realized price for a barrel of oil produced by CNOOC rose 81 percent to $ 75.37 in the first quarter while output rose 31.9 percent, the statement said. The company, which announced its biggest foreign acquisition last month, aims to boost production by as much as 27 per cent this year to win the rising oil prices and demand from China.
“The turnover in the first quarter was 25.3 per cent of our annual guidance based on an average of $ 80 a barrel price of Brent crude oil, which means that it is possible to upgrade through rising oil prices the second quarter, “Gordon Kwan, head of energy research at regional Mirae Asset Securities Ltd. in Hong Kong said in an e-mail. Brent futures averaged $ 85.40 a barrel this month.
CNOOC has made five discoveries off the coast of China in the first quarter, the company said. Three projects have OnStream in the period of nine planned for this year, he said.
Capital expenditures
Capital expenditures decreased 22.7 percent to 5.8 billion yuan between January and March. The company expects to maintain its capital expenditure budget of 7.9 billion dollars this year, he developed several projects, President Yang Hua told reporters during a teleconference.
Production increased from the equivalent of 67.3 million barrels in the first quarter, according statement today. Crude oil production climbed 30.4 per cent to 55 million barrels, production overseas has jumped 155.6 percent, said Yang.
Nearly 70 percent of CNOOC are active in mainland China and almost all of its income comes from oil and gas.
“These strong results provide strong support for achieving our goal of 2010,” Chairman Fu Chengyu said in statement.
The company is also an oil producer of China’s third largest, agreed March 14 to pay $ 3.1 billion for a stake of half in Argentina oil producer Bridas Corp., as part of efforts to increase reserves. The transaction can be completed in the first half if all approvals have been obtained from the government, CNOOC said today.
The company is looking for overseas acquisitions will create value for shareholders, “Yang said in the conference call. He did not elaborate.
Shares Rise
The shares have risen 62 percent over the last 12 months Hong Kong trading, compared with a gain of 44 per cent by the benchmark Hang Seng in the same period. CNOOC fell 1.75 percent at HK $ 13.50 close of trading prior to announcement. Twenty-five of the 36 analysts surveyed by Bloomberg rate the shares as a purchase. ” Four analysts rate the stock a copy. ”
Profits up 44 percent to 42.4 billion yuan this year on higher production and demand, according to the median estimate of 16 analysts compiled by Bloomberg.
CNOOC expects to produce between 275 million and 290 million barrels of oil equivalent this year, the energy supplier said on February 2. The company said this month it resumed production of Huizhou fields. Fields, off the coast of southern China were hit by a typhoon in September last year. They represent about 4 percent of production based on figures for 2008 production.
Typhoon Damage
Crude oil production from the eastern South China Sea has dropped 22 percent to 9.8 million barrels in the first quarter, mainly due to the typhoon, Yang said today.
parent state-controlled society had access to gas fields BG Group Plc in Queensland, as part of an agreement to buy liquefied natural gas company Curtis LNG in Australia with the largest Export of fuel.
BG and China National Offshore Oil Corp. has signed an agreement on March 24 to supply 3.6 million tonnes of LNG per year for 20 years.
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