CNOOC 3Q Revenue Rises; Only Halfway To 2017 Spending Goal
BEIJING, Oct 25 (Reuters) - Third-quarter revenue rose at CNOOC Ltd, the listed arm of China National Offshore Oil Co, because of higher oil and natural gas prices but the company's capital spending has lagged its goal.
Earnings from the main oil and gas business in the quarter ending on Sept. 30 rose to 35.94 billion yuan ($5.41 billion), up 16.9 percent from 30.7 billion yuan a year ago, marking the best third quarter performance since 2015, the company said on Wednesday.
Capital spending plans have lagged projection and the company is likely to only spend 60 billion yuan in 2017, the lower end of its target of 60 billion to 70 billion yuan, Xie Weizhi, CNOOC's chief financial officer said during a conference call with reporters.
Capital spending in the third quarter was flat from a year ago at 11.8 billion yuan. For the first nine months of the year, CNOOC spent only 33.18 billion yuan, only half of the full-year goal.
"Looking at the progress of projects in the first nine months, we are under pressure to spend 70 billion yuan this year," Xie said, without specifying why spending was below target.
Overall revenue gained in the quarter as higher oil and gas prices offset a decline in oil output during the period. However, natural gas sales revenue jumped 22 percent as production increased and prices rose.
Total crude oil production worldwide fell to 95.6 million barrels in the third quarter from 97.6 million barrels a year ago, with output from both domestic and overseas oilfields dropping, the company said. Gas output rose to 119.8 billion cubic feet from 115.7 billion cubic feet in the previous year.
The state-owned firm reported a realized oil price of $50.87 per barrel for the third quarter, up 20.4 percent from the year ago period. Natural gas prices rose 15.9 percent from a year earlier.
Even with the stronger natural gas sales, Xie lamented the fact that CNOOC's gas fields are not well-placed to meet surging gas demand in north China.
"The Chinese government has paid a great deal of attention to gas consumption. Most of our gas fields are in the South China Sea area, creating challenges for gas sales. There is a mismatch between our production and sales market," Xie said.
($1 = 6.6445 Chinese yuan renminbi)
(Reporting by Meng Meng and Aizhu Chen; Editing by Christian Schmollinger)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- Analyst Says USA Influence on Middle East Seems to be Fading
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally