CNOOC(00883)2020-04-07 22:12Financial Performance - Total revenue for 2019 reached RMB 233,199 million, an increase from RMB 227,711 million in 2018, representing a growth of approximately 2.1%[4] - Net profit for 2019 was RMB 61,045 million, up from RMB 52,675 million in 2018, indicating a growth of about 15.8%[4] - Investment income for 2019 was RMB 4,632 million, an increase from RMB 3,685 million in 2018, representing a growth of about 25.7%[4] - The company reported a revenue of 197.17 billion RMB and a net profit of 61.05 billion RMB, despite a more than 10% decline in international oil prices[12] - The company reported a significant increase in revenue, achieving a total of 100 billion RMB, representing a year-over-year growth of 15%[145] - Oil and gas sales revenue reached RMB 197,173 million (USD 28,618.5 million), an increase of about 5.7% compared to the previous year[188] - The net profit for 2019 was RMB 61,045 million (USD 8,860.3 million), a significant year-on-year increase of approximately 15.9%[188] Production and Reserves - The average daily net production for 2019 was 1,387,564 barrels of oil equivalent, maintaining a strong production level[2] - The company had confirmed net reserves of approximately 5.18 billion barrels of oil equivalent as of December 31, 2019[2] - The total net production of oil liquids in China was 726,866 barrels per day, showing a slight increase from 705,366 barrels per day in 2018, representing a growth of approximately 3.5%[8] - The total net production of natural gas in China reached 987.9 million cubic feet per day in 2019, up from 834.8 million cubic feet per day in 2018, indicating a growth of about 18.3%[8] - The total net production (in barrel of oil equivalent per day) increased to 1,330,740 barrels in 2019 from 1,243,357 barrels in 2018, reflecting a growth of approximately 7%[8] - The company achieved a net oil and gas production of 506.5 million barrels of oil equivalent, marking the highest level in its history[12] - As of December 31, 2019, the net proven oil reserves in China reached 1,899.7 million barrels, an increase from 1,430.6 million barrels in 2015, representing a growth of 32.7% over the five-year period[9] - The total net proven reserves (in million barrels of oil equivalent) rose to 2,964.3 million barrels in 2019, compared to 2,324.3 million barrels in 2015, marking an increase of 27.5%[9] Exploration and Development - The company is focusing on expanding its operations in various regions, including Asia, Africa, North America, South America, Oceania, and Europe[2] - The company continues to invest in technology development to enhance its exploration and production capabilities[3] - The company made 23 commercial exploration discoveries and successfully evaluated 30 oil and gas structures, with proven geological reserves increasing by nearly 200 million cubic meters of oil equivalent[12] - The company plans to enhance its clean energy development efforts, focusing on key natural gas projects, including the Lingshui 17-2 gas field, which has entered the development phase[13] - The company aims to enhance exploration efforts in both domestic and overseas markets, focusing on large and medium-sized oil and gas field explorations[26] - The company is committed to reducing exploration costs and improving efficiency, with the cost per barrel reaching a historical low[30] Cost Management and Efficiency - The average cost per barrel of oil equivalent decreased to 29.78 USD, continuing a six-year downward trend, while operating expenses per barrel fell to 7.39 USD, the best level in recent years[12] - The company plans to implement stricter cost control and more prudent investment decisions in response to economic uncertainties in 2020[185] - The average operating cost per barrel of oil equivalent decreased by 4.7% to RMB 50.9 (USD 7.39) from RMB 53.4 (USD 8.07) in 2018[191] - The management emphasized a focus on operational efficiency, aiming to reduce costs by 5% in the upcoming year[138] Corporate Governance - The company emphasizes the importance of corporate governance and adheres to the Corporate Governance Code to protect shareholder interests[80] - The board consists of six members as of December 31, 2019, including one executive director, one non-executive director, and four independent non-executive directors[93] - The company has established a nomination committee chaired by the chairman or an independent non-executive director, ensuring compliance with the Corporate Governance Code provision A.5.1[133] - The company has maintained good corporate governance practices, with all independent non-executive directors having been re-elected in the past three years[131] Risk Management - The company faces significant risks from oil and gas price volatility, which can materially impact business, cash flow, and profits[55] - The risk management committee is responsible for identifying, analyzing, and assessing comprehensive risks, focusing on major decisions and events[51] - The company is committed to continuous improvement of its risk management and internal control systems to maintain good corporate governance[53] - The company acknowledges that macroeconomic complexities and political instability can have substantial effects on its business and strategy[55] Environmental and Social Responsibility - The company emphasizes environmental protection during project construction and production phases, aiming for "increased production without increased pollution" or "increased production with reduced pollution"[155] - The company has established an environmental management information system covering all levels of the group for monitoring and managing pollutant emissions[155] - The company made charitable donations amounting to RMB 640 million during the year ended December 31, 2019[166] - The company emphasizes its commitment to social responsibility and sustainable development, aiming to provide clean and reliable energy while addressing stakeholder needs[73] Leadership and Management - Yang Hua has over 30 years of experience in oil exploration and production, having held various senior positions within the company, including CEO and Chairman[140] - The management team has undergone significant changes, with several key executives transitioning out of their roles in recent years[150] - The financial leadership has been stable, with Xie Weizhi overseeing financial strategies since 2017[149] - The company emphasizes its commitment to exploration and production, leveraging the expertise of its senior management[151] Shareholder Engagement - The company emphasizes effective communication with shareholders, ensuring external auditors attend annual general meetings to address audit-related questions[126] - The company has a professional investor relations department to maintain communication channels with shareholders and investors[126] - The company has committed to addressing any shareholder proposals presented at the annual general meeting[131]