Cnooc's H1 profit slips as higher costs ate into revenues

|By:, SA News Editor

Cnooc (NYSE:CEO) says H1 net profit fell 2.3% Y/Y as higher spending and little-changed average oil prices undercut an increase in oil and gas production.

Still, H1 net income was a better than expected 33.6B yuan ($5.47B); revenues were flat Y/Y at 138.8B yuan, while oil and gas sales rose 5.7% to 117.1B yuan.

Difficulties in cost control “should not be underestimated,” CEO says, adding that it sees uncertainties and challenges in H2.

H1 production rose 6.8% Y/Y to 211.6M boe, with Canadian unit Nexen contributing 36.3M boe; CEO expects full-year production to reach 422M-435M boe, a 5.6% Y/Y increase.

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