Core Viewpoint - China National Offshore Oil Corporation (CNOOC) reported a strong financial performance for the fiscal year 2024, with significant increases in revenue and net profit, driven by both domestic and international production growth [1][2] Financial Performance - In 2024, CNOOC achieved oil and gas sales revenue of 355.6 billion yuan and a net profit attributable to shareholders of 137.9 billion yuan, representing a year-on-year growth of 11.4% [1] - The average cost of crude oil equivalent for the year was $28.52 per barrel, a decrease of approximately 1.1% year-on-year, reinforcing the company's cost competitiveness [1] Production and Exploration - CNOOC's net production of oil and gas reached 726.8 million barrels of oil equivalent, marking a year-on-year increase of 7.2% [1] - Domestic production benefited from contributions from fields such as Bohai Zhong 19-6, with a 5.6% increase, while international production saw a significant rise of 10.8% due to the commissioning of the Payara project in Guyana [1] - The company made 11 new oil and gas discoveries in 2024, including significant projects like Longkou 7-1 and Qinhuangdao 29-6, and successfully evaluated 30 oil and gas structures [1] - As of the end of 2024, CNOOC's net proven reserves reached 7.27 billion barrels of oil equivalent, a year-on-year increase of 7.2%, with a stable reserve life of 10 years [1] Strategic Outlook - CNOOC's Chairman, Wang Dongjin, emphasized the company's commitment to driving reserve growth and production through technological innovation, maintaining cost advantages, and providing stable dividends to shareholders [2] - The company plans to continue its efforts in enhancing quality and efficiency, aiming for high-quality development in the future [2]

Core Viewpoint - China National Offshore Oil Corporation (CNOOC) reported a total revenue of RMB 420.506 billion for the year ending December 31, 2024, reflecting a year-on-year growth of 0.94% and a net profit attributable to shareholders of RMB 137.936 billion, which is an increase of 11.38% [1] Group 1: Financial Performance - Total revenue reached RMB 420.506 billion, with a year-on-year increase of 0.94% [1] - Net profit attributable to shareholders was RMB 137.936 billion, representing an 11.38% increase [1] - Earnings per share stood at RMB 2.9, with a proposed final dividend of HKD 0.66 per share [1] Group 2: Resource and Production Growth - The company achieved a record high in proven reserves with a replacement rate of 167%, ensuring a stable reserve life of 10 years [1] - Oil and gas production reached 726.8 million barrels of oil equivalent, marking a 7.2% year-on-year increase [1] - The company made 11 new oil and gas discoveries during the year and established a trillion-cubic-meter gas area in the South China Sea [1] Group 3: Technological Innovation and International Expansion - The company is enhancing its technological innovation capabilities, with significant discoveries guided by innovative exploration theories [2] - The "Deep Sea No. 1" ultra-deepwater gas field won the National Science and Technology Progress Award, showcasing the company's advancements in technology [2] - CNOOC successfully acquired 10 oil contracts in Mozambique, Brazil, and Iraq, further solidifying its position as a leading global industry player [1]

Financial Performance - In 2024, CNOOC Limited achieved a total oil and gas production of 726.8 million barrels of oil equivalent, representing a year-on-year increase of 7.2%[4] - The company reported a total revenue of RMB 420.5 billion for the year, with oil and gas sales revenue contributing RMB 355.6 billion, up from RMB 327.9 billion in 2023[8] - Net profit attributable to shareholders reached RMB 138 billion, compared to RMB 124.1 billion in the previous year, marking a significant increase[8] - Total revenue for the year 2024 reached RMB 362,711 million, an increase of 8.5% from RMB 334,050 million in 2023[17] - Oil and gas sales revenue amounted to RMB 355,615 million, up from RMB 327,867 million in the previous year, reflecting a growth of 8.5%[17] - The net profit attributable to shareholders for 2024 was RMB 142,322 million, compared to RMB 126,878 million in 2023, representing an increase of 12.1%[9] - Basic and diluted earnings per share for 2024 were both RMB 2.90, an increase from RMB 2.60 in 2023, marking a growth of 11.5%[9] - The company reported a total comprehensive income of RMB 142,368 million for 2024, compared to RMB 127,125 million in 2023, an increase of 12.0%[9] - The company’s pre-tax profit for 2024 was RMB 51.994 billion, compared to RMB 48.884 billion in 2023, reflecting an increase of 4.5%[26] - The company’s total operating revenue for the company was RMB 420,506 million, a 0.9% increase from RMB 416,609 million in the previous year, driven by higher oil and gas sales[39] Assets and Liabilities - Non-current assets totaled RMB 791,672 million in 2024, up from RMB 755,323 million in 2023, indicating a growth of 4.8%[10] - Current assets increased to RMB 264,609 million in 2024 from RMB 250,275 million in 2023, reflecting a rise of 5.7%[10] - Total assets less current liabilities reached RMB 937,406 million, compared to RMB 881,659 million in 2023, showing an increase of 6.3%[11] - The company's net assets rose to RMB 749,436 million in 2024, up from RMB 667,876 million in 2023, representing a growth of 12.2%[11] - The company’s total assets increased to RMB 1,056.281 billion in 2024 from RMB 1,005.598 billion in 2023, an increase of 5%[19] - The company’s total liabilities decreased to RMB 306.845 billion in 2024 from RMB 337.722 billion in 2023, a reduction of 9.1%[19] - As of December 31, 2024, the company had interest-bearing liabilities of RMB 91,887 million, down from RMB 120,177 million in 2023, resulting in a significant decrease in the debt-to-equity ratio from 15.2% to 10.9%[55] Dividends and Shareholder Returns - The company plans to maintain a dividend payout ratio of no less than 45% from 2025 to 2027, subject to shareholder approval[6] - The company declared an interim dividend of HKD 0.74 per share for 2024, an increase from HKD 0.59 per share in 2023, representing a growth of 25.42%[28] - The board has proposed a final dividend of HKD 0.66 per share (tax included) for the fiscal year 2024[37] - For the fiscal year 2024, the net profit attributable to shareholders was RMB 137,936 million, with a proposed final dividend of HKD 0.66 per share, totaling HKD 31,370 million[62] - The total dividend for the fiscal year 2024, including the mid-term dividend, amounts to HKD 1.40 per share, representing 44.7% of the net profit attributable to shareholders[62] Production and Reserves - The proven reserves replacement rate reached 167%, with a stable reserve life of 10 years, ensuring a solid resource foundation for future development[3] - The net confirmed reserves as of the end of 2024 stand at 727 million barrels of oil equivalent, with a reserve replacement ratio of 167%[35] - The company aims for a production target of 760 to 780 million barrels of oil equivalent in 2025, with a reserve replacement ratio target of no less than 130%[61] - The average cost per barrel of oil equivalent was USD 28.52, reinforcing the company's cost competitiveness[6] Strategic Initiatives and Developments - CNOOC Limited successfully acquired 10 oil contracts in Mozambique, Brazil, and Iraq, enhancing its international business presence[4] - The company has made significant technological advancements, including the establishment of intelligent oil and gas fields, accelerating its digital transformation[5] - The company is committed to green transformation and has initiated offshore wind power projects while advancing CCS/CCUS industrialization[5] - The company aims to expand its natural gas business and enhance offshore natural gas exploration and development efforts[34] Financial Management and Policies - The company has a prudent financial policy, focusing on cost control as a key performance indicator[34] - Research and development expenses were RMB 3.436 billion in 2024, down from RMB 4.136 billion in 2023, a reduction of 17%[24] - The company reported a decrease in other taxes (excluding income tax) to RMB 20,276 million, down 16.7% from RMB 24,331 million, due to historical mining rights revenue recognition in the previous year[41] - Interest income for the company was RMB 4,582 million, a decrease of 4.6% from RMB 4,805 million, attributed to changes in average bank deposit size and interest rates[46] - The company experienced a net foreign exchange loss of RMB 1,318 million, compared to RMB 297 million in the previous year, due to fluctuations in currency exchange rates[47] Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the fiscal year ending December 31, 2024[67] - The company has not purchased, sold, or redeemed any listed securities during the fiscal year ending December 31, 2024[66] - The board of directors confirmed compliance with the company's ethical standards regarding securities trading for the fiscal year ending December 31, 2024[68] Future Outlook - The company’s future outlook includes uncertainties related to oil and gas price fluctuations, macroeconomic factors, and regulatory changes[70]

Investment Rating - The report does not explicitly state an investment rating for the company [2] Core Insights - The global economy is expected to grow by 3.2% in 2025, with China's economy projected to grow by 5% [8] - Global oil demand is anticipated to continue growing, with Brent crude oil prices expected to remain between $70 and $80 per barrel [8] - The company aims for a production target of 760-780 million barrels of oil equivalent for 2025, up from an estimated 720 million barrels in 2024 [34] Summary by Sections Macro Environment - The report highlights a stable macroeconomic outlook with global oil demand growth and favorable oil price predictions [8] Capital Expenditure - The capital expenditure budget for 2025 is set between RMB 125-135 billion, maintaining stability to support production growth [14] - The capital expenditure structure is divided into exploration (16%), development (61%), production capitalization (20%), and others (3%) [13] Exploration Work - The company focuses on finding large and medium-sized oil and gas fields, with a significant emphasis on offshore and unconventional resources [18] - The exploration budget for 2025 includes 220 exploration wells and extensive seismic data collection [17] Production Goals - The company targets a net production of approximately 720 million barrels of oil equivalent in 2024 and aims for 760-780 million barrels in 2025 [34] Key New Projects - Major projects include the Bohai Zhong 26-6 oilfield, which has a peak production capacity of 22,300 barrels of oil equivalent per day [37] - The Guyana Yellowtail project is expected to significantly increase production capacity by 2030 [55] - The Brazil Buzios 7 project is projected to reach a total production capacity of 1.5 million barrels per day by 2027 [58] Future Operating Strategy - The company emphasizes enhancing storage and production, technological innovation, and green development as part of its strategic goals [61] Financial Health - The report indicates a commitment to maintaining a dividend payout ratio of no less than 45% from 2025 to 2027, subject to shareholder approval [89]

Group 1 - China National Offshore Oil Corporation (CNOOC) has seen continuous net buying from southbound funds for five consecutive days, with a total net buying amount of 1.668 billion HKD and a cumulative stock price increase of 3.17% [1][2] - On January 2, CNOOC was among the actively traded stocks, with a transaction amount of 1.598 billion HKD through the Hong Kong Stock Connect, and a net buying amount of 566 million HKD [2] - During the same period, the total transaction amount for actively traded stocks through the Hong Kong Stock Connect reached 31.607 billion HKD, with a net buying amount of 1.945 billion HKD [2]

Group 1 - China National Offshore Oil Corporation (CNOOC) is currently under investigation for serious violations of discipline and law involving its former drilling office director, Dong Xingliang [1] - The investigation is being conducted by the CNOOC's disciplinary inspection team and the Jiangsu Provincial Commission for Discipline Inspection and Supervision [1]

Investment Rating - Buy rating with a target price of HKD 23.12, representing a 33.5% upside from the current price [2] Core Views - The company maintained high single-quarter net profit despite a decline in oil prices, driven by production growth and excellent cost control [2] - The company achieved a net profit of RMB 116.659 billion in the first three quarters, a year-on-year increase of 19.5% [2] - The company's oil and gas production reached 542.1 million barrels of oil equivalent in the first three quarters, with a year-on-year increase of 7.0% [2] - The company's cost per barrel of oil decreased to USD 28.14, with operating costs at USD 7.21 per barrel, placing it among the global leaders in cost control [2] - The company's capital expenditure in the first three quarters was approximately RMB 95.34 billion, a year-on-year increase of 6.6%, with high growth potential in future projects [2] Financial Performance - The company's revenue for Q3 2024 was RMB 99.254 billion, a year-on-year decrease of 13.5% but a sequential increase of 6.3% [2] - The company's net profit for Q3 2024 was RMB 36.928 billion, with a total revenue of RMB 326.024 billion for the first three quarters, a year-on-year increase of 6.3% [2] - The company's oil and gas sales contributed significantly to revenue, with domestic fields like Bozhong and Enping showing strong production growth [2] - The company's realized oil sales price increased from USD 76.8 per barrel in the first three quarters of 2023 to USD 79.0 per barrel in the same period of 2024, narrowing the discount to international oil prices [2] Production and Reserves - The company's net production in Q3 2024 was 179.6 million barrels of oil equivalent, a year-on-year increase of 7.0% [2] - Overseas production growth was driven by the successful commissioning of the Payara project in Guyana [2] - The company secured 9 new offshore exploration blocks and discovered 4 new oil and gas structures, with projects expected to come online between 2024 and 2027 [2] Financial Forecasts - The company is expected to achieve revenues of RMB 451.4 billion, RMB 465.5 billion, and RMB 476.0 billion in 2024, 2025, and 2026, respectively [2] - Net profit is forecasted to be RMB 145.2 billion, RMB 148.9 billion, and RMB 153.0 billion for 2024, 2025, and 2026, respectively [2] - The company's EPS is expected to be RMB 3.05, RMB 3.13, and RMB 3.22 for 2024, 2025, and 2026, respectively [2] Valuation Metrics - The company's PE ratio is forecasted to be 5.2x, 5.1x, and 5.0x for 2024, 2025, and 2026, respectively [2] - The company's PB ratio is expected to be 1.2x, 1.1x, and 1.0x for 2024, 2025, and 2026, respectively [2] - The dividend yield is projected to be 8.3%, 8.5%, and 8.8% for 2024, 2025, and 2026, respectively [2]

Investment Rating - Maintains an **OUTPERFORM** rating with a target price of HK$24.19 [1] - The current price is HK$17.30 as of November 11, 2024 [1] Core Views - The company achieved a revenue of RMB 326.024 billion in the first three quarters of 2024, a year-on-year increase of 6.26% [1] - Net profit attributable to shareholders reached RMB 116.659 billion, up 19.47% year-on-year, with diluted EPS of RMB 2.45 [1] - Despite a decline in Brent crude prices, the company maintained strong profitability through cost reduction and increased production [1] - Single-quarter net profit has remained above RMB 30 billion since Q1 2022, driven by growth in oil and gas production and lower production costs [1][6] Financial Performance - Q3 2024 Brent crude average price was $78.71/barrel, down 8.40% year-on-year, but the company still achieved year-on-year net profit growth [1] - Oil and gas equivalent production in Q3 2024 was 179.50 million barrels, up 7.04% year-on-year, with oil liquid production at 139.1 million barrels (up 7.58%) and natural gas production at 235.5 billion cubic feet (up 5.28%) [1] - Forecasted EPS for 2024-2026 are RMB 2.97, 3.00, and 3.08, respectively, with a 2024 BPS of RMB 15.68 [1][7] Valuation and Peer Comparison - The company is valued at a 2024E P/B multiple of 1.4x, with a target price of RMB 21.95/HK$24.19 [1][7] - Compared to peers, the company's valuation is higher than PetroChina (0.64x P/B) and Sinopec (0.57x P/B) but lower than ExxonMobil (2.02x P/B) [2] Key Financial Metrics - Revenue for 2024E is projected at RMB 444.187 billion, up 7% year-on-year, with net profit expected to grow 14% to RMB 141.224 billion [4] - Gross profit margin is forecasted to remain strong at 51.1% in 2024E, with ROE at 18.9% [4] - The company's debt-to-asset ratio is expected to decrease to 31.5% in 2024E, reflecting improved financial health [4]

Investment Rating - The report maintains a "Buy" rating for the company, citing strong fundamentals and consistent performance [1][6] Core Views - The company achieved record-high net profit in H1 2024, with revenue reaching RMB 226.8 billion, up 18.1% YoY, and net profit attributable to shareholders rising 25% YoY to RMB 79.7 billion [1][4] - Free cash flow remained robust at RMB 63.99 billion, with a capital expenditure of RMB 63.1 billion, up 11.7% YoY, completing 47-51% of the annual budget [1][4] - The company declared an interim dividend of HKD 0.74 per share, a 25.4% YoY increase, with a payout ratio of 40.3% [1][4] Financial Performance - Net production reached a record high of 362.6 million barrels of oil equivalent (BOE) in H1 2024, up 9.3% YoY, driven by contributions from domestic fields like Kenli 6-1 and Bozhong 19-6, as well as the Payara project in Guyana [1][5] - Average realized oil price increased by 9.2% YoY to USD 80.32 per barrel in H1 2024, while average realized gas price declined by 4.1% YoY to USD 7.79 per thousand cubic feet [1][5] - The company's cost control was effective, with a 1.5% YoY reduction in barrel oil equivalent cost to USD 27.75 per BOE [6] Future Projections - The report forecasts net profit attributable to shareholders for 2024-2026 at RMB 141.8 billion, RMB 152.1 billion, and RMB 163.3 billion, with YoY growth rates of 14.5%, 7.2%, and 7.4%, respectively, assuming a Brent crude price of USD 80 per barrel [1][6] - Under different oil price scenarios (USD 60, 70, and 85 per barrel), the company's net profit for 2025 could range from RMB 100 billion to RMB 163 billion, with dividend yields of 5.3%, 6.8%, and 8.6%, respectively [6] Market Data - As of September 10, 2024, the company's closing price was HKD 19.16, with a total market capitalization of HKD 911.4 billion and total assets of RMB 1.0754 trillion [2] - The company's net asset value per share stood at RMB 15.1, with a dividend yield of 6.5% in 2023, expected to rise to 8.6% by 2026 [3][11]

Financial Performance - The company achieved operating revenue of RMB 226.77 billion, an increase of 18% compared to RMB 192.06 billion in the same period last year[10]. - Net profit attributable to shareholders reached RMB 79.73 billion, reflecting a 25% increase from RMB 63.76 billion year-on-year[10]. - The net cash flow from operating activities was RMB 79.20 billion, up 27% from RMB 62.32 billion in the previous year[10]. - Oil and gas sales revenue amounted to RMB 185.11 billion, representing a 22% year-on-year increase[14]. - The company's operating revenue for the first half of 2024 was RMB 226,770 million, an increase of 18.1% compared to RMB 192,064 million in the same period last year, driven by higher oil and gas sales and rising international oil prices[79]. - The company reported a profit of RMB 63,761 million for the period, compared to a profit of RMB 63,748 million in the previous year, indicating a slight increase[99]. - The company's profit for the six months ended June 30, 2024, was RMB 79,731 million, compared to RMB 63,761 million for the same period in 2023, reflecting an increase of 24.9%[119]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.74 per share (tax included) for 2024, based on the authorization from the 2023 annual general meeting[3]. - The company plans to distribute an interim dividend of HKD 0.74 per share, the highest in the company's history[13]. - The interim dividend declared is HKD 0.74 per share, totaling approximately HKD 35,187 million (RMB 32,139 million), an increase from HKD 0.59 per share in the previous period[120]. Exploration and Production - The company operates as China's largest offshore oil and gas producer and one of the largest independent exploration and production companies globally, with assets distributed across Asia, Africa, North America, South America, Oceania, and Europe[8]. - The company focuses on exploration, development, production, and sales of crude oil and natural gas, primarily in the Bohai Sea, western and eastern South China Sea, and East China Sea[8]. - The company's net production reached 362.6 million barrels of oil equivalent, a 9.3% increase compared to the same period last year[12]. - The company made significant discoveries in offshore oil fields, including the Bluefin discovery in Guyana and new oil fields in Bohai Sea[12]. - The company completed 174 exploration wells and collected 4,755 square kilometers of 3D seismic data in the first half of the year[16]. - The company achieved a natural gas flow rate exceeding 10 million cubic meters per day at the Lingshui 36-1 discovery, marking a significant breakthrough in ultra-deep water exploration[15]. - The company made a new discovery of 100 million tons at the Bluefin-1 well in the Guyana Stabroek block, further expanding the resource scale[15]. - The company successfully implemented China's first ultra-deep large displacement well at the Enping 21-4 oil field, setting records for the deepest offshore drilling and horizontal length[20]. - The company is actively pursuing green low-carbon development, focusing on offshore wind power and integrating new energy with oil and gas exploration[78]. Financial Position and Assets - The company's total assets as of June 30, 2024, were RMB 1,075,404 million, a 6.9% increase from RMB 1,005,598 million at the end of 2023[87]. - Current assets reached RMB 297,170 million, up 18.7% from RMB 250,275 million at the end of 2023, mainly due to an increase in cash and cash equivalents[87]. - The company's depreciation, depletion, and amortization amounted to RMB 37,555 million, an increase of 11.3% compared to RMB 33,738 million in the same period last year, primarily due to new oil field production and increased output[83]. - The company's total equity attributable to shareholders reached RMB 719,198 million, up from RMB 666,586 million at the end of 2023, marking a growth of 7.9%[99]. Environmental and Social Responsibility - The company generated a total of 28.58 million kWh of electricity in the first half of the year, resulting in a CO2 reduction of 16,600 tons[21]. - The company expanded its green electricity usage by consuming over 400 million kWh, leading to a reduction of nearly 300,000 tons of carbon emissions[21]. - The Ningbo terminal photovoltaic project achieved an annual power supply of 1.4 million kWh, with the onshore terminal photovoltaic coverage rate increasing to 82%[22]. - The company completed the world's first 5 MW offshore high-temperature flue gas waste heat power generation device, expected to save approximately 300 million cubic meters of natural gas and reduce CO2 emissions by about 800,000 tons over 20 years[22]. - The company invested over RMB 60 million in 24 assistance projects in various regions, focusing on industry, talent, culture, ecology, and infrastructure[23]. - The company reported a total of 19.96 tons of COD, 0.64 tons of ammonia nitrogen, and 6.07 tons of SO2 emissions, all within the approved limits for the first half of 2024[25]. - The company invested approximately RMB 348 million in environmental management and pollution control facilities in the first half of 2024[26]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[29]. Risk Management - The company has established a comprehensive risk management and internal control system to mitigate potential losses from risks encountered in achieving operational goals[30]. - The company faces risks from macroeconomic changes, including geopolitical tensions and trade disputes, which could negatively impact oil and gas supply and downstream demand[31]. - The company is subject to high customer concentration risk, where a significant reduction in purchases from major customers could adversely affect performance[41]. - The company is also exposed to high supplier concentration risk, which could disrupt operations if key suppliers fail to provide services[42]. - The company anticipates increased carbon emissions with production growth, facing potential costs and reputational damage if unable to meet national emission reduction standards[34]. - The company is at risk from fluctuating oil and gas prices, which can significantly impact business, cash flow, and earnings[35]. - The company may face challenges in achieving expected returns from acquisitions and divestitures due to various factors affecting asset acquisition success[39]. - The company recognizes the increasing competition in the energy sector, which may negatively impact its business and financial performance[36]. - The company is aware of the potential for HSSE risks that could lead to significant operational disruptions and reputational damage[37]. - The company faces risks related to undeveloped reserves, which could negatively impact performance if not developed timely and effectively[43]. - The company emphasizes the importance of technology and innovation to enhance competitiveness and operational capabilities, with insufficient core technology reserves potentially affecting production and cost control targets[44]. - Cybersecurity threats and IT infrastructure failures could lead to business interruptions, data loss, and increased costs, impacting the company's reputation[45]. - The company is exposed to foreign exchange risks due to revenue being primarily in RMB and USD, which could affect cash flow and capital expenditures[47]. - Legal risks arise from potential violations of anti-corruption, anti-money laundering, and corporate governance laws, which could harm the company's reputation and operational capabilities[50]. - The company is subject to various data privacy laws across jurisdictions, potentially leading to significant compliance costs[51]. - Economic sanctions from the U.S. could impact the company's operations and partnerships, affecting investor perception and business opportunities[52]. - The company is committed to enhancing its risk management and internal control systems to address significant risks through a comprehensive risk management mechanism[53]. Corporate Governance - The financial report has not been audited, and the company ensures the accuracy and completeness of the financial data presented[3]. - The company’s financial report is prepared according to both Chinese accounting standards and international/Hong Kong financial reporting standards[3]. - The company’s CEO and CFO have confirmed the authenticity and accuracy of the financial report[3]. - The company complied with all code provisions of the Corporate Governance Code during the six months ending June 30, 2024[65]. - The company’s board confirmed compliance with the ethical standards required by the Corporate Governance Code during the reporting period[66]. - The audit committee reviewed the interim results for the six months ending June 30, 2024, which were unaudited[61]. Subsidiaries and Joint Ventures - The company has a 100% ownership in its directly held subsidiary, CNOOC (China) Limited, which is engaged in offshore oil and gas exploration and production in China[102]. - The company has a 50% stake in BC Energy Investments Corp., registered in the British Virgin Islands, with a total issued capital of USD 102,325,582[106]. - The company’s subsidiaries are engaged in oil and gas exploration, development, and production activities across various countries, including Nigeria, Canada, the UK, the USA, and Brazil[104]. - The company’s financial performance is significantly influenced by its subsidiaries and joint ventures, which are critical to its asset base and overall results[107]. Capital Expenditures and Investments - Capital expenditures totaled RMB 63,125 million, an increase of 11.7% from RMB 56,514 million in the same period last year, ensuring sufficient support for resource increase and production[90]. - The company and its subsidiaries invested approximately RMB 62,811 million in property, plant, and equipment, up from RMB 57,136 million in the same period last year[121]. - The total amount committed for planned projects is RMB 32,099.09 million, with RMB 28,679.05 million already utilized as of June 30, 2024[94]. - The company has capital commitments to CNOOC and/or its affiliates amounting to approximately RMB 8,142 million as of June 30, 2024, down from RMB 14,382 million as of December 31, 2023[149]. Market and Customer Insights - 62% of the sales revenue for the six months ended June 30, 2023, came from customers in China, while no other individual region contributed more than 10%[113]. - The company’s sales revenue from major customer Sinopec accounted for 8% of total oil and gas sales for the six months ended June 30, 2024, down from 12% in the same period of 2023[142].