CNOOC Production Down, Sales Up

  • Posted by
  • on October 26th, 2011

Leakage at a couple platforms curtail output, but the Chinese oil giant increases Q3 revenues.

1 yr chart (Y! Finance)


Currently ranked #2 in the BeanScreen, CNOOC ($CEO) released their Q3 report this morning. Oddly enough though, it doesn’t appear EPS or net income figures were available. I think they only report those twice a year (their first half 2011 highlights can be found here).

Here’s the latest Q3 YoY numbers:

  • Oil and gas sales +23.7%
  • Total revenue +23.0%
  • Oil and gas production -9.1%
  • Average oil selling price +50.3%
  • Average gas selling price +20.0%
  • CapEx +28.8%

Still dealing with the fallout from spillage at their Penglai field in Bohai Bay, CNOOC announced that previously revised full year production targets would likely be met. Back in August they cut their annual production target from 355-365 million barrels to 331-341 million.

CNOOC‘s chief exec had this to say about the spillage and the quarter:

“In the third quarter, the adjusted annual production target was further challenged by the suspension of production at PL19-3 oilfield due to the oil spill incident. The Company will be well prepared to deal with these challenges through stabilizing production of the existing fields as well as pushing for the construction on the new projects. In the meantime, the Company will properly handle and resolve all subsequent issues of the oil spill incident. We will also carry out thorough safety inspection in all offshore areas to prevent any potential risks and thus laying a better foundation for the Company’s long-term development.”

So on the surface a decent report from CNOOC in our view (minus the leaks). Wish they reported some EPS figures, but looks like we’ll have to wait until January 2012 to get a more complete earnings update.

We own CEO shares at a cost basis of about $206, with our last purchase being made this past August at $180. They currently yield a divy of about 3.2%.


sourcesCNOOC Limited Announces Third Quarter Results –  Yahoo! Finance

CNOOC Q3 production totals 80.9 mln bbls of oil equivalentReuters

CNOOC confident of meeting output target this yr – Reuters

CNOOC says oil leak leads to 62,000 bpd output loss – Reuters

disclosurewe currently own shares in CEO



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