CNOOC Ltd Reports Q3 Profit Drop of 8% Despite Higher Production Output

Lower realized oil prices and a 13% decrease in Q3 oil price despite 7% rise in oil and gas production contribute to CNOOC's profit fall.

CNOOC's Q3 net profit dropped 8.13% to 33.88 billion yuan ($4.64 billion) due to lower realized oil prices, despite a 7% year-on-year increase in oil and gas production to 167.8 million barrels of oil equivalent (boe).
The company's realized oil price for Q3 was 13% lower at $83.2 compared to the same period last year.
Nationwide production in China increased 6.7% to 345.5 million boe and overseas production grew by nearly 12% to 154.1 million boe, boosted by operations in Guyana and Brazil.
CNOOC aims for a record production target of 650 million to 660 million boe for 2023, aligning with its medium-term goal of a 6% increase in average annual production by 2025.
Capital expenditure increased 21.5% to 32.95 billion yuan and reached a total of 89.5 billion yuan for the first 9 months of the year, a 30% increase compared to last year. The company plans to further increase capex to 100 billion - 110 billion yuan for 2023, supporting the development of nine projects and aiming for a reserve replacement ratio of over 130%.