CNOOC(00883)2024-09-10 08:57Financial 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].