CNOOC(00883)2022-04-11 22:26Financial Performance - Total revenue for 2021 reached RMB 246.111 billion, an increase from RMB 155.372 billion in 2020, representing a growth of 58.5%[2] - Net profit for 2021 was RMB 70.307 billion, up from RMB 24.956 billion in 2020, marking a significant increase of 181.5%[2] - The company reported a pre-tax profit of RMB 95.821 billion for 2021, up from RMB 34.907 billion in 2020, which is an increase of 174.5%[2] - Investment income for 2021 was RMB 2.850 billion, a slight decrease from RMB 2.978 billion in 2020[2] - The company reported oil and gas sales revenue of RMB 222.1 billion and a net profit of RMB 70.3 billion, marking the highest profit level in the company's history[25] - The company achieved a net profit of RMB 703.1 billion, marking the best performance in its history[23] Production and Reserves - Average daily net production for 2021 was 1,569,560 barrels of oil equivalent, with proven reserves estimated at approximately 5.73 billion barrels of oil equivalent as of December 31, 2021[1] - The net production of oil liquids reached 851,389 barrels per day in 2021, an increase from 775,161 barrels per day in 2020, representing a growth of approximately 9.8%[4] - Natural gas net production was 1,299.7 million cubic feet per day, up from 1,153.1 million cubic feet per day in 2020, indicating a growth of about 12.7%[4] - Total net production (in barrels of oil equivalent per day) increased to 1,516,208 barrels in 2021 from 1,389,543 barrels in 2020, reflecting a rise of approximately 9.1%[4] - The company achieved a net production of 573 million barrels of oil equivalent, exceeding the annual production target and setting a historical high[11] - The total proven oil reserves increased to 3,923.8 million barrels, reflecting a growth from 3,649.0 million barrels in the previous year, representing a 7.5% increase[6] - The company’s natural gas reserves reached 7,019.8 billion cubic feet, an increase from 6,863.3 billion cubic feet in the previous year[6] Exploration and Development - The company made 22 commercial discoveries during the year, including four medium to large oil and gas fields in Chinese waters[11] - The company completed 206 exploration wells in 2021, including 4 cooperative wells, and made 16 new discoveries in Chinese waters[29] - The company plans to continue high exploration investment in 2022, focusing on large and medium-sized oil and gas field exploration in China[34] - The company has established a new energy subsidiary to accelerate the development of renewable energy projects[15] - The company has a total exploration area of 287,673 square kilometers, with significant areas in Bohai, South China Sea, and East China Sea[28] Operational Efficiency and Cost Management - The average cost per barrel of oil equivalent was USD 29.49, reinforcing the company's cost competitiveness[23] - The company’s digital transformation initiatives improved production efficiency by 30% and reduced operational costs significantly[68] - The company is advancing the development of heavy oil thermal recovery and economically effective development of low-permeability oilfields, aiming to enhance single well production and reduce decline rates[40] Sustainability and Environmental Initiatives - The offshore oilfield shore power project has been successfully launched, marking a significant breakthrough in energy efficiency[15] - The company initiated China's first offshore carbon dioxide storage demonstration project, with an estimated storage capacity exceeding 1.46 million tons[70] - The company implemented over 40 energy-saving renovation projects, saving 161,000 tons of standard coal and reducing carbon dioxide emissions by 409,000 tons[71] - The company emphasizes sustainable development by extracting natural resources in a safe, efficient, and environmentally friendly manner, committing to clean and reliable energy supply[77] Governance and Compliance - The company has adopted a code of ethics to ensure compliance with legal and ethical standards, with annual reviews conducted since 2009[186] - CNOOC's governance standards have been recognized for their transparency and ethical conduct, contributing to stable and effective operations[115] - The company is subject to evolving anti-corruption, anti-bribery, and anti-money laundering regulations, particularly in the U.S., EU, and other regions[114] - The company has established compliance manuals and systems to address anti-corruption, anti-money laundering, and antitrust compliance requirements[159] Risk Management - The company faces risks from macroeconomic factors, including the impact of the COVID-19 pandemic and geopolitical tensions, which may adversely affect performance[93] - Fluctuations in crude oil and natural gas prices pose significant risks to the company's business, cash flow, and profitability[97] - The company has established a risk management and internal control system that is designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatements or losses[155] Employee and Workforce Management - The company has established a competitive compensation system, providing various social insurances and supplementary insurances for employees, including accident and critical illness insurance[83] - The company emphasizes gender equality in hiring practices and actively promotes the increase of female employees in management positions[136] - In 2021, the company selected 90 young technological talents to enhance their innovative thinking and practical abilities in exploration and development[86] Future Outlook and Strategic Initiatives - The company plans to maintain a dividend payout ratio of no less than 40% over the next three years, with a minimum annual dividend of HKD 0.70 per share[17] - The company is expanding its market presence in international regions, targeting a DD% increase in market share by the end of the fiscal year[196] - Strategic acquisitions are planned, with an estimated investment of EE billion to enhance operational capabilities and market reach[196]