CNOOC (883) Q2 2025 earnings summary

Executive summary

• Achieved record-high net oil and gas production of 384.6 million BOE, up 6.1% year-over-year, with natural gas output rising 12% and both domestic and overseas production reaching historical highs for the period.

• Net profit attributable to shareholders was RMB69.5 billion, down 12.8% year-over-year, mainly due to lower oil prices, but the decline was less than the drop in oil prices.

• Revenue decreased by 8.4% to RMB207.6 billion, reflecting a 13.9% drop in realized crude prices, partially offset by higher sales volumes.

• Ten new projects commenced production, including major developments in China and Brazil, and five new discoveries and 18 successful appraisals solidified the resource base.

• Interim dividend of HK$0.73 per share declared, with a payout ratio of 45.5%, totaling approximately RMB31.6 billion, the second highest in company history.

Financial highlights

• Oil and gas sales reached RMB171.7 billion, down 7.2% year-over-year.

• All-in cost per BOE remained stable at US$26.94, a 2.9% year-on-year decrease.

• Free cash flow was robust at RMB57 billion, and total assets increased to RMB1.119 trillion.

• Basic and diluted EPS were RMB1.46, down 12.7%–13% year-over-year.

• Capital expenditure for H1 2025 was RMB57.6 billion, mainly for exploration and production capacity expansion.

Outlook and guidance

• Will continue to focus on reserve and production growth, green energy transition, and technological innovation.

• 2025 production target set at 760–780 million BOE, with CapEx budget of RMB125–135 billion.

• Reserve replacement ratio target is no less than 130%, with reserve life stable at 10 years.

• Oil and gas will remain the core business, with new energy as a supplementary growth area.

• Strategic focus will be maintained in H2 2025, with continued efforts to achieve annual targets and deliver shareholder returns.