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CNOOC's third-quarter net income rises 2.7% on higher oil prices

By Reuters News

BEIJING, Oct 30 (Reuters) - Chinese offshore oil and gas major CNOOC Ltd 600938.SS reported a 2.7% year-on-year rise in third-quarter net income on Friday, supported by higher oil prices.

Net income during the July-September period was 33.30 billion yuan ($5 billion), CNOOC said in a filing with the Hong Kong Stock Exchange.

Higher oil sales revenue more than offset lower natural gas sales revenue, helping lift earnings.

Net income for the first nine months was 119.12 billion yuan, up 16.8% from a year earlier.

CNOOC's third-quarter revenue rose 7.6% year-on-year to 112.91 billion yuan.

NATURAL GAS AND OIL PRODUCTION RISE

Oil and natural gas production rose 2.7% to 593.7 million barrels of oil equivalent (boe) during the first nine months, while natural gas output fell 2.9% to 755.3 billion cubic feet.

Production in China rose 1.9% during the nine-month period to 408.5 million boe, while overseas production increased 4.3% to 185.1 million boe.

Revenue from oil liquids sales rose 23.6% year-on-year to 86.45 billion yuan in the third quarter and increased 24% to 265.36 billion yuan in the first nine months.

Natural gas sales revenue fell 7% year-on-year to 12.82 billion yuan in the third quarter and declined 3.7% to 40 billion yuan in the first nine months.

Its average realised oil price rose 32.1% year-on-year to $88.03 per barrel in the third quarter.

Its all-in cost was $30.57 per barrel of oil equivalent in the first nine months, compared with the $27.35 it reported a year earlier.

The company attributed the cost increase to exchange rate movements that raised costs in US dollar terms, higher taxes linked to rising oil prices and changes in the mix of producing fields.

Capital spending was 89.9 billion yuan in the first nine months, up 4.5% from a year earlier, mainly reflecting stepped-up work on infill wells.

CNOOC made five new discoveries and successfully appraised 23 oil- and gas-bearing structures during the first nine months, including Bozhong 8-3 South, Huizhou 21-8 and Caofeidian 22-3 in China.

It brought nine new projects into production during the period. Four began production in the third quarter, including the second phase of the Bozhong 26-6 oilfield development and the Panyu 10-4 oilfield development.

CNOOC's Hong Kong-listed shares have risen 16% year to date, outperforming the benchmark Hang Seng Index .HSI, which has fallen 9.1%.

($1 = 6.6552 Chinese yuan renminbi)

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