CNOOC of China Reports Record High Profits for 2022, Twice the Amount of the Previous Year
China's CNOOC saw a substantial increase in its earnings in 2022, thanks to the booming global oil and gas prices, which were caused by Russia's aggression towards Ukraine. The net profit of the Chinese oil giant soared by more than 100% as a result of this favorable market condition.
The business, which is one of the three biggest state-run oil and gas firms in China, announced its outstanding combined earnings of 141.7 billion yuan ($20.57 billion) this week. This amount is incredibly higher than last year's earnings of 70.32 billion yuan ($10.21 billion), and this news was shared through the Hong Kong Stock Exchange.
The overall production of oil and gas was 624 million barrels of oil equivalent (boe), which is an increase of 8.9% from the previous year's total of 573 million boe.
CNOOC is planning to achieve a remarkable accomplishment as they target to produce around 650 million to 660 million barrels of oil equivalent (boe) in the present year. This is a step towards achieving their goal of 6% increase in annual production growth by the year 2025, where they are expecting to reach a production of 2 million boe per day.
Looking back at its history, the company has been known to explore and produce at a lower cost compared to others in the industry. However, in 2020, the total production cost per barrel came up to $30.39, which is slightly higher compared to the $29.49 per barrel cost in 2021.
The combined capital expenditure (capex) amounted to 100.36 billion yuan, showing an increase of 14.6% compared to the previous year.
As older oil deposits dry up, state-owned oil companies in China are turning to newer, more difficult locations to maintain their domestic oil production. CNOOC, in particular, is playing a major role in this effort. Despite the added costs and geological challenges, the company remains a significant contributor to China's overall oil output.
The corporation is still looking for more sources of resources, announcing that they've found 18 profitable ones this year. In addition, they've managed to replenish their overall reserves by 182 percent.
The net confirmed stockpile remained at roughly 6.24 billion barrels of oil equivalent by the conclusion of 2022, preserving a stockpile existence of over a decade for the past six years nonstop.
Since the beginning of the year, the shares of the company listed on the Hong Kong exchange have experienced a 17.4% increase.
The blog section can be rephrased in simpler English as follows: One dollar is worth 6.8898 Chinese yuan renminbi.
