CNOOC(00883)2023-08-30 22:23Financial Performance - The total revenue for the first half of 2023 reached HKD 60 billion, a 15% increase compared to the same period last year [4]. - The company reported a net profit of HKD 12 billion for the first half of 2023, up 25% from the previous year [4]. - Total operating revenue for the first half of 2023 was RMB 192,064 million, a decrease of 5% compared to RMB 202,355 million in the same period last year [10]. - Net profit attributable to shareholders was RMB 63,761 million, down 11% from RMB 71,887 million year-on-year [10]. - The net profit excluding non-recurring gains and losses was RMB 62,324 million, reflecting a 12% decrease from RMB 70,910 million in the previous year [10]. - The company's net asset attributable to shareholders increased by 7% to RMB 636,537 million from RMB 597,182 million at the end of the previous year [10]. - The company achieved oil and gas sales revenue of RMB 151,690 million, a decline of 14.1% compared to the previous year [15]. - Basic earnings per share were RMB 1.34, down 15% from RMB 1.57 in the same period last year [11]. - The net cash flow from operating activities for the first half of 2023 was RMB 99,618 million, a decrease of 3% year-on-year, primarily due to a decline in cash inflow from oil and gas sales caused by falling international oil prices [86]. - The company's total assets as of June 30, 2023, were RMB 999,074 million, an increase from RMB 929,031 million as of December 31, 2022, representing an increase of approximately 7.5% [110]. Production and Exploration - The company reported a significant increase in production, achieving an average daily output of 1.5 million BOE (barrels of oil equivalent), representing a 10% increase year-on-year [4]. - Oil and gas net production reached 331.8 million barrels of oil equivalent, an increase of 8.9% year-on-year [15]. - The net production in China was 231.2 million barrels of oil equivalent, up 6.6% year-on-year, primarily due to increased output from the Kenli 6-1 and Lufeng 15-1 oilfields [18]. - The company aims to achieve a production capacity of 500 million BOE by 2025, focusing on both conventional and unconventional resources [4]. - The company completed 181 exploration wells and collected 6,391 square kilometers of 3D seismic data [17]. - The company made five new discoveries in Chinese waters, with geological reserves exceeding 20 million tons for the Panyu 10-6 and Kaiping 18-1 discoveries [16]. - The company is actively pursuing strategic acquisitions to enhance its market position, with a focus on assets in Africa and South America [4]. Technological Innovation - The company is investing in new technologies for enhanced oil recovery, with a budget allocation of HKD 1 billion for R&D in 2023 [4]. - The company is focusing on technological innovation, with significant progress in deepwater exploration and the construction of the world's first ultra-large deepwater platform with remote control capabilities [12]. - The company has strengthened its core technology system and improved its autonomous innovation capabilities, enhancing the reliability of intelligent distribution technology [20]. - The company is committed to technological innovation to enhance competitiveness, and insufficient core technology reserves may adversely affect its operational targets [43]. Environmental Initiatives - The company launched the world's first semi-submersible "Double Hundred" deep-sea floating wind power project, expected to reduce carbon emissions by approximately 22,000 tons annually [21]. - The company is advancing its green low-carbon initiatives, aiming to consume 500 million kilowatt-hours of green electricity within the year, equivalent to a reduction of about 440,000 tons of carbon emissions [21]. - The company has invested approximately RMB 321 million in environmental management and pollution control projects in the first half of 2023 [25]. - The company has established five wastewater discharge outlets and 48 air discharge outlets, adhering to various national and local environmental standards [23]. - During the reporting period, the emissions of key pollutants were: COD at 33.96 tons, ammonia nitrogen at 0.92 tons, SO2 at 14.97 tons, NOX at 91.20 tons, particulate matter at 1.42 tons, and smoke at 0.07 tons, all within the approved discharge limits for the first half of 2023 [24]. Risk Management - The company maintains a risk management and internal control system to address potential risks associated with its operational goals [29]. - The global economic slowdown and tightening liquidity may adversely affect the company's performance due to its reliance on the oil and gas industry [30]. - The company faces intensified competition from national oil companies and large integrated oil and gas firms, which may negatively affect its business and financial performance [35]. - The company is exposed to HSSE risks that could result in injuries, environmental damage, and reputational harm, potentially affecting its operational capabilities [36]. - Risks associated with mergers and acquisitions may lead to increased costs and failure to achieve operational goals if asset acquisitions do not succeed [38]. Shareholder and Governance - The company declared an interim dividend of HKD 0.59 per share for 2023, reflecting a commitment to return value to shareholders [3]. - The company has a significant shareholder, CNOOC (BVI) Limited, holding approximately 64.55% of the issued Hong Kong shares, equating to 28,772,727,268 shares [58]. - The company held its annual general meeting on May 31, 2023, where 11 resolutions were discussed without any rejections [53]. - The audit committee has reviewed the accounting standards and practices adopted by the company and its subsidiaries, ensuring compliance with financial reporting standards [60]. - The company has complied with all relevant corporate governance codes and regulations during the reporting period [63]. Financial Instruments and Liabilities - As of June 30, 2023, the company reported that the current and former directors and senior executives held a total of 1,650,000 Hong Kong shares, representing approximately 0.004% of the issued Hong Kong shares [55]. - The company has outstanding bonds totaling 728,246,000 for CPNA 2035, and $690,200,000 for CPNA 2039, with respective repurchase percentages of 6.45%, 0.55%, and 0.83% [62]. - The company's total liabilities increased by 9% to RMB 361,348 million, with current liabilities rising by 34% to RMB 152,289 million, primarily due to increased dividend payables [85]. - The company has capital commitments of RMB 67,065 million as of June 30, 2023, an increase from RMB 58,346 million at the end of 2022 [147]. - The company incurred interest expenses of RMB 23 million on a RMB 4,300 million loan from CNOOC Group at a fixed interest rate of 1.08% during the six months ended June 30, 2023 [145].