China's CNOOC posted a 7.1 per cent rise in first-quarter net profit on Tuesday as the Iran war pushed up global oil prices and the offshore oil and gas major increased its production.
Net income for the January-to-March period was CNY39.14 billion ($5.73 billion), compared with CNY36.56 billion a year earlier, according to a filing with the Hong Kong Stock Exchange on Tuesday. Revenue rose 8.6 per cent to CNY116.08 billion.
CNOOC, the listed arm of China National Offshore Oil Company, reported total net production at 205.1 million barrels of oil equivalent (boe) in the first quarter, up 8.6 per cent from a year earlier, with production increasing from both domestic and overseas operations.
Domestic net production was 140 million boe, up seven per cent year-on-year, with projects including Kenli 10-2 in the Bohai Basin off north China contributing.
Overseas net production was 65.1 million boe, up 12.3 per cent year-on-year, mainly due to contributions from projects such as Yellowtail in Guyana.
The company's unaudited oil and gas sales revenue was CNY97 billion, up 9.9 per cent year-on-year. CNOOC, as one of the world's lowest-cost offshore producers, reported all-in production costs of $28.41 per barrel in the first quarter, up from 2025 whole-year cost at $27.
First-quarter capital spending came in at CNY33.02 billion, up 19.1 per cent year-on-year, due to the accelerated deployment of exploration and adjustment wells and faster capacity construction.
CNOOC's average selling prices of oil and gas are likely to be supported in the short term by geopolitical tensions and global supply disruptions, while the Iran conflict is unlikely to affect its production, according to Fitch Ratings.
"CNOOC's overseas business accounts for about 35 per cent of its oil and gas assets and 31 per cent of sales volume, with Canada the largest contributor and limited Middle East exposure," said Betsy Guo, Associate Director at Fitch Ratings.
CNOOC's Hong Kong-listed shares have risen 36.06 per cent year-to-date, outperforming the Hang Seng Index, which has gained 0.19 per cent.
(Reporting by Sam Li and Aizhu Chen; Editing by Joe Bavier)
