CNOOC(SH:600938)2024-08-28 11:21Production and Exploration - The company's net production reached 362.6 million barrels of oil equivalent in the first half of 2024, an increase of 9.3% year-on-year, achieving historical highs in both domestic and international oil and gas production [31]. - The company completed 174 exploration wells and collected 4,755 square kilometers of 3D seismic data in the first half of 2024, contributing to significant exploration advancements [36]. - The company has made significant breakthroughs in exploration technology, leading to the discovery of several large oil fields, including the Longkou 7-1 and Bohai Zhong 26-6 [35]. - The company's oil and gas production in the first half of 2024 consisted of 78.2% oil liquids and 21.8% natural gas, with oil liquids production increasing by 8.8% and natural gas production rising by 10.8% year-on-year [67]. - Total sales volume was 356.1 million barrels of oil equivalent, an increase of 11.1% from 320.6 million barrels in the first half of 2023 [134]. Financial Performance - The company's operating revenue for the first half of 2024 reached RMB 226.77 billion, an increase of 18% compared to RMB 192.06 billion in the same period last year [59]. - Net profit attributable to shareholders of the parent company was RMB 79.73 billion, reflecting a 25% increase from RMB 63.76 billion year-on-year [59]. - The net cash flow from operating activities amounted to RMB 118.55 billion, up 19% from RMB 99.62 billion in the previous year [59]. - Oil and gas sales revenue for the first half of 2024 reached RMB 185,112 million, an increase of 22.0% compared to RMB 151,686 million in the same period of 2023 [134]. - Crude oil sales amounted to RMB 161,256 million, up 24.1% from RMB 129,933 million year-on-year [134]. - Natural gas sales increased to RMB 23,856 million, reflecting a 9.7% rise from RMB 21,753 million in the previous year [134]. Investments and Dividends - The company plans to distribute an interim dividend of HKD 0.74 per share, reflecting its commitment to shareholder returns [22]. - The company has initiated 24 assistance projects in various regions, investing over RMB 60 million to support rural revitalization efforts [71]. - The company declared cash dividends totaling RMB 45 million during the reporting period [198]. - The company plans to distribute an interim dividend of HKD 0.74 per share for 2024, marking a historical high for the same period [60]. Environmental and Technological Initiatives - The company has initiated the first offshore photovoltaic integrated project at the Penglai oil field, enhancing its commitment to green and low-carbon development [40]. - The company is focusing on integrating oil and gas exploration with renewable energy development, with an 82% coverage rate of photovoltaic systems at onshore terminals [40]. - The company is committed to technological innovation to enhance competitiveness, with insufficient core technology reserves potentially impacting its operational goals [85]. - The company is actively promoting green low-carbon development and has made significant investments in offshore wind power and CCS/CCUS research [175]. Risk Management - The company has established a risk management and internal control system to mitigate potential losses from operational risks [46]. - The company is actively enhancing its risk management and internal control systems to address significant risks through a comprehensive risk management mechanism [93]. - The company faces risks from high customer concentration, where a significant reduction in purchases from major clients could adversely affect performance [83]. - The company has a high concentration of procurement from major suppliers, and any disruption in service from these suppliers could negatively impact operations and performance [84]. - The company is exposed to exchange rate risks due to revenue being primarily in RMB and USD, which could affect cash flow if capital expenditures require currency conversion [88]. Asset and Liability Management - The total assets of the company at the end of the reporting period were RMB 1,075.40 billion, a 7% increase from RMB 1,005.60 billion at the end of the previous year [59]. - The net assets attributable to shareholders of the parent company increased by 8% to RMB 719.20 billion from RMB 666.59 billion year-on-year [59]. - The company's total liabilities amounted to RMB 354,501 million, which is a 5.0% increase from RMB 337,722 million at the end of 2023 [185]. - Current liabilities rose to RMB 166,125 million, a significant increase of 34.0% from RMB 123,939 million at the end of 2023, primarily due to an increase in dividend payables [186]. Cost Management - Operating expenses for the company were RMB 17,463 million, an 8.4% increase from RMB 16,103 million year-on-year [134]. - The company maintained a strong cost control with a decrease in per barrel operating cost to $6.81, down 4.9% from $7.16 in the previous year [134]. - Depreciation, depletion, and amortization (excluding oilfield abandonment costs) rose to RMB 35,385 million, a 12.1% increase from RMB 31,577 million in the previous year [136]. Challenges and Outlook - The company anticipates an increase in carbon dioxide emissions in line with production growth, posing challenges to meet national emission reduction standards and potentially leading to increased costs and reputational damage [79]. - The company faces potential delays in project development in Canada due to the need for consultations with Indigenous peoples regarding land ownership claims [110]. - The company regularly reviews oil and gas price forecasts, and significant deviations from these forecasts could have adverse effects on its financial performance [105].