CNOOC (883) Q4 2024 earnings summary

Executive summary

• Achieved record-high production and reserves in 2024, with net production of 726.8 million BOE, up 7.2% year-over-year, and reserve replacement at 167%.

• Net profit attributable to equity shareholders rose 11.4% to RMB137.9 billion, supported by increased reserves, production, and efficiency.

• Maintained strong cost leadership, with all-in cost per BOE at US$28.52, down 1.1% year-over-year, and operating expenses per BOE at US$7.61.

• Board proposed a full-year dividend of HK$1.40 per share (up 12% year-over-year), with a payout ratio of 44.7% and a commitment to a minimum 45% payout through 2027.

• Advanced green and low-carbon initiatives, including offshore wind, CCUS, and digital transformation.

Financial highlights

• Oil and gas sales rose 8.4% to RMB355.6 billion; total revenue increased 0.9% to RMB420,506 million.

• Operating cash flow increased 5.3% to RMB220.9 billion; free cash flow was RMB97.5 billion.

• Total assets reached RMB1,056.3 billion; equity attributable to shareholders rose 12.1% to RMB747,548 million.

• Basic and diluted EPS were RMB2.90, up from RMB2.60 in 2023.

• Capital expenditure surpassed RMB130 billion, supporting reserves and production growth.

Outlook and guidance

• 2025 production target set at 760–780 million BOE; reserve replacement ratio to be no less than 130%.

• Capex budget for 2025 is RMB125–135 billion.

• Dividend payout policy to remain at or above 45% for 2025–2027, subject to shareholder approval.

• Focus on increasing reserves, production, technological innovation, and green transformation.