CNOOC Reports Record Net Income

Upon releasing its 2005 annual results, CNOOC Limited said that the company's net income reached RMB 25.3 billion (US$3.14 billion), an increase of RMB 9.18 billion (US$1.1 billion) or 57 percent from 2004. The 2005 figure reported is the company's highest to date.

Earning per share reached RMB 0.62 (US$0.08), a 58-percent increase from the previous year. CNOOC also said that its 2005 revenues jumped 25.8 percent to RMB 69.5 billion (US$8.6 billion). The company generated revenues of RMB 53.4 billion (US$6.7 billion) from oil and gas sales, up 45 percent from 2004.

CNOOC's net production amounted to 154.8 million barrels of oil equivalent in 2005, a 10.9-percent increase from 2004, and 130 million barrels of oil and 142 billion cubic feet of natural gas.

The CNOOC says that it distributed a total dividend of HK$ 0.2 (US$0.03) per share to its shareholders during 2005.

Mr. Yang Hua, Chief Financial Officer and Executive Vice President of the Company commented: "I'm very proud that our financial results hit a new record this year," said Yang Hua, CNOOC's chief financial officer and executive vice president. "This is the result of our consistent efforts to maintain prudent financial policy."

CNOOC reports that its 2005 exploration activities resulted in 14 oil and gas discoveries and eight appraisal successes offshore China, achieving a reserve replacement ratio of 186 percent and increasing net proved reserves by 288 million BOE. As of December 31, 2005, the company has accumulated net proved reserves at approximately 2.36 billion BOE.

Seven new projects commenced production successfully last year, said CNOOC, adding that production in offshore China grew by 13.7 percent to 141 million BOE.

Overseas, the company acquired a 16.69-percent stake in the Canadian company MEG. Earlier this year, CNOOC also announced that it would acquire 45 percent working interests in the deepwater OML 130, offshore Nigeria. By the end of 2005, the company had assets or interests in countries including Indonesia, Australia, Myanmar, Canada, and Morocco.