CNOOC (883) Q2 2024 earnings summary

Executive summary

• Achieved record highs in net profit, production, reserves, and revenue in H1 2024, with net profit attributable to shareholders up 25% to RMB79.73 billion and net production reaching 362.6 million BOE, a 9.3% increase year-over-year.

• Oil and gas sales revenue rose 22% year-over-year to RMB185.1 billion, with total revenue at RMB226.77 billion and interim dividend per share up 25.4% to HK$0.74.

• Major discoveries and project launches in China and overseas, including seven new oilfields, Lingshui 36-1, and significant breakthroughs in Guyana and Mozambique.

• Technological innovation advanced with new deepwater development models, green energy projects, and record-setting offshore drilling.

• Interim dividend payout ratio reached 40.3%, with robust cash flow and a gearing ratio of 11.4%.

Financial highlights

• Net profit attributable to shareholders: RMB79.73 billion, up 25% year-over-year; basic and diluted EPS: RMB1.68, up 25%.

• Oil and gas sales: RMB185.1 billion, up 22% year-over-year; total revenue: RMB226.77 billion, up 18%.

• All-in cost per BOE: US$27.75, down 1.5% year-over-year; OPEX and DD&A well controlled.

• Free cash flow: RMB63.99 billion; total assets exceeded RMB1 trillion; gearing ratio at 11.4%.

• Interim dividend payout: HK$0.74 per share, totaling RMB32.14 billion.

Outlook and guidance

• Focus on reserves and production growth, technological innovation, and green development for H2 2024.

• Confident in achieving or exceeding annual production and operational targets despite uncertainties such as weather and macroeconomic factors.

• 2024 production target: 700–720 million BOE; reserve replacement ratio target: no less than 130%; CapEx budget: RMB125–135 billion.