CNOOC (883) Q3 2024 earnings summary

Executive summary

• Net production reached 542.1 million boe in the first three quarters, up 8.5% YoY, with China and overseas production rising 6.8% and 12.2% respectively.

• Net profit attributable to equity shareholders for the first three quarters was RMB116.7 billion, a 19.5% increase YoY.

• Nine new discoveries and 23 successful appraisals of oil and gas structures were achieved, with two new discoveries and five appraisals in Q3.

• Major development projects, including Suizhong 36-1/Luda 5-2, Shenhai-1 Phase II, and Bozhong 19-2, commenced production.

• Net production and net profit reached record highs for the first three quarters, driven by reserves growth and cost control, despite stable international oil prices.

Financial highlights

• Oil and gas sales revenue for the first three quarters was RMB271.43 billion, up 13.9% YoY.

• Third quarter net profit grew 9.0% YoY to RMB36.93 billion; basic EPS for the first three quarters was RMB2.45, up 19.5% YoY.

• Q3 2024 revenue was RMB99.25 billion, down 13.5% from Q3 2023; first three quarters revenue was RMB326.02 billion, up 6.3% YoY.

• Net cash flows from operating activities for the first three quarters were RMB182.77 billion, up 14.9% YoY.

• Total assets at September 30, 2024, were RMB1,079.39 billion, up 7.3% from year-end 2023.

Outlook and guidance

• Focus remains on reserves and production growth, with continued cost control and major project execution.

• Cost competitiveness remains strong, with all-in cost at US$28.14 per boe for the first three quarters.

• The company continues to focus on increasing reserves, production, and efficiency amid stable international oil prices and a recovering Chinese economy.

• Several new projects commenced or are progressing, supporting future production increases.