Cnooc,China’s biggest offshore oil explorer, posted record half-year profit that beat analysts’ estimates after crude prices rose and it increased output to meet demand in the fastest-growing major economy.
Net income climbed 51 percent to 39.34 billion yuan ($6.2 billion), or 0.88 yuan a share, in the first six months from 25.99 billion yuan, or 0.58 yuan, a year earlier, Cnooc said in a Hong Kong stock exchange filing today. That surpassed the 35.95 billion-yuan median estimate of eight analysts surveyed by Bloomberg News and the previous record of 28.4 billion yuan in the period ended Dec. 31.
Production rose 13 percent helped by acquisitions in North America and Africa, while crude climbed to the highest in more than two years. Output growth may slow in the second half after oil spills disrupted operations at a field in northern China and unit Bridas Corp. fell behind schedule for completing the acquisition of a $7.1 billion stake in Pan American Energy LLC.
“It looks like production is slowing down,” said Laban Yu, an analyst at Jefferies Group Inc in Hong Kong. “It’s a record profit because of oil prices, and that won’t repeat itself in the next half as crude has already pulled back.”
Crude in New York averaged $98.50 a barrel in the first half, compared with $78.46 a year earlier. The price has fallen 11 percent since the beginning of the second half, averaging $92.02, on speculation a slowing U.S. economy and Europe’s debt crisis will lead to weaker oil demand.
Cnooc has climbed 8.7 percent in Hong Kong trading in the past 12 months, compared with the 5.8 percent decline in the benchmark Hang Seng Index. (HSI) The Beijing-based company fell 2.1 percent to close at HK$14.22, before the earnings announcement.
Overall revenue increased 51 percent to 124.6 billion yuan in the first six months, Cnooc said in the earnings statement.