CNOOC hits record profits, production amidst lower prices

(Bloomberg) – Cnooc Ltd. saw profits hit a record in the first quarter as China’s biggest offshore driller continued to increase production amidst slightly lower global crude prices.

Net income for the quarter was 39.72 billion yuan ($5.48 billion), a 24% increase over the previous year, the company said in a filing on Thursday. Revenue rose 14% over the period to 111.47 billion yuan, including a 21% surge in oil and gas sales. Cnooc’s realized price for oil rose 6.2%, despite the small drop in the world market.

The firm has been a prime contributor to Beijing’s push for increased production as the country tries to enhance energy security amid global market volatility. Cnooc lifted production by 9.9% to 180.1MMboe, another record, in the first three months.

Overseas production rose 17%, mainly from increases in Canada and Guyana. Total capital expenditure also rose by 17% to 29 billion yuan over the period.

Global benchmark crude futures were 0.5% lower in the first quarter compared to the previous year, although they’ve rallied since March amid escalating tensions in the Middle East.