CNOOC Annual Profit Declines Amid Higher Costs; Revenue, Production Rise

(RTTNews) - Chinese energy firm CNOOC Limited (CEO, CNU.TO) Friday said full year profit declined from the previous year, as higher costs more than offset increased production and improved revenues.

Profit attributable to owners of the parent for the state-run company declined to 56.46 billion yuan ($9.09 billion) from last year's 63.69 billion yuan, primarily due to decreased oil prices and higher costs.

Revenue increased to 285.86 billion yuan from 247.63 billion yuan reported last year. The Group is principally engaged in the exploration, development, production and sale of crude oil, natural gas and other petroleum products.

Oil and gas sales rose to 226.45 billion yuan from 194.8 billion yuan, due to the significant increase of production attributable from the acquisition of Canadian energy firm Nexen inc.

Marketing revenues advanced to 55.5 billion yuan from 50.77 billion yuan in the prior year.

Sales volume improved to 397.2 million barrels of oil equivalent or BOE from 322.6 million BOE in the prior year.

Net production climbed to 411.7 million BOE from 342.4 million BOE, benefiting from the addition from the Nexen acquisition and the increased production of shale oil and gas in North America and technical service contract in Iraq.

Overseas production volume accounted for 36.2 percent of total net production volume in 2013, compared to 22 percent in 2012.

Operating expenses jumped 40 percent to 30.014 billion yuan, and operating expenses per BOE increased 15.2 percent.

The board recommended a final dividend of HK$0.32 per share for the year, payable on July 3, to all shareholders on the register on June 13.

Looking ahead, CNOOC said in 2014, the outlook for the global political and economic situations would remain complicated.

In 2014, the company plans to bring seven to ten new projects on stream out of around 20 projects that are expected to be under construction.

The stock closed up 1.1 percent in Hong Kong at HK$12.32.