31 March 2009 11:53 [Source: ICIS news]
SHANGHAI (ICIS news)--China’s largest offshore oil and gas producer China National Offshore Oil Corporation (CNOOC) said on Tuesday it 2008 net profits surged 42% in 2008 on the back of strong growth in production volume and higher oil prices.
The company’s net profit stood at yuan(CNY)44.38bn ($6.50bn) last year compared to CNY31.26bn in 2007, the company said in a disclosure to the Hong Kong Stock Exchange late on Tuesday.
Total revenues for the period amounted to CNY125.98bn, representing a 38.9% year-on-year increase.
“Our oil and gas sales increased 38.1% to CNY100.8bn in 2008 from CNY 73.036bn in 2007, primarily as a result of both higher average realized oil prices and increase in volume produced and sold in 2008,” the company said.
The average realised price for crude oil increased $23.13/bbl, or 34.9%, to $89.39/bbl in 2008 from $66.26/bbl in 2007.
The current international crude prices are comparatively lower than last year and are expected to have a material effect on the company's profitability in 2009, the company said.
CNOOC’s spent CNY37.4bn in 2008, representing a 38.9% increase from 2007 levels, mostly on exploration and project development and construction. The increase was also contributed by higher service fee and raw material costs in 2008.
“In 2009, the company will continue to increase its capital expenditures, enhance the level of its exploration and development activities in order to pave a smooth way for sustainable growth in the future,” said Fu Chengyu, chairman and CEO of CNOOC.
Ten new projects will commence production in 2009, including the OML 130 project in ?xml:namespace>
CNOOC currently has more than 20 projects under development, according to the report.
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