Cnooc profit jumps 57% on oil prices, demand

March 24 | Updated: Mar 25 2006, 05:30am hrs
Cnooc Ltd, Chinas biggest offshore oil and gas producer, said profit rose 57% last year as the nations economic expansion boosted demand, and prices for crude climbed to records.

Net income increased to 25.3 billion yuan ($3.15 billion), or 0.62 yuan a share, from 16.1 billion yuan, or 0.39 yuan per share a year earlier, the Beijing-based company said in a statement on Friday. Sales rose 26% to 69.5 billion yuan.

Cnoocs chairman Fu Chengyu is seeking acquisitions to sustain earnings growth and bolster reserves as energy use in the worlds fastest-growing major economy surges.

Cnooc this year, bought Nigerian fields and agreed to explore off Equatorial Guinea after US lawmakers blocked Fus $18.5 billion bid for Unocal Corp. Cnoocs profit rose at twice the pace of rival PetroChina Co.

The results were in line with my expectations, Liu Yang, who helps manage $1.8 billion of Asian stocks, including Cnooc, at Atlantis Investment Management, said.

Time To Toast
Sales rose 26% to 69.5 billion yuan
Oil and gas production rose 11% to 154.8 million barrels
Cnooc has bought Nigerian fields and agreed to explore off Equatorial Guinea
I am sure that they would soon get on the acquisition trail again after Unocal. It is a stock worth holding for the long term as it has top quality management.

Cnooc said oil and gas production rose 11% to 154.8 million barrels of oil equivalent. The company realised an average price of $47.31 for its oil last year, an increase of 34%, as production of the fuel climbed 11.4% to 130.3 million barrels. Revenue from oil and gas sales jumped 45% to 53.4 billion yuan, with gas output climbing 6.7% to 142.2 billion cubic feet.

Cnoocs profit, a record for Chinas third-largest oil company, was below the average estimate of 26 analysts in a Thomson Financial survey for 26.8 billion yuan. Cnooc will pay a final dividend of 10 Hong Kong cents, compared with 3 Hong Kong cents a year ago, the statement said.

Bloomberg