Increased efforts in exploration and production drive growth
- Cnooc reports record high net profit for 1Q
- Net profit up 24% from previous year
- Revenue increases by 14% to CNY111.47 billion
- Oil and gas sales rise by 21%
- Total net production of oil and gas increases by 9.9%
- Higher realized prices and sales volumes contribute to revenue growth
- Brent crude rises 14% during first three months of 2024
Cnooc, the Chinese oil major, has reported a record high net profit for the first quarter of the year. The company’s net profit increased by 24% compared to the previous year, reaching 39.72 billion yuan (US$5.48 billion). This growth was supported by increased efforts in oil and gas exploration, as well as steady growth in net oil and gas production. Cnooc also experienced a 14% increase in revenue, reaching CNY111.47 billion. The company’s main source of revenue, oil and gas sales, rose by 21%, attributed to higher realized prices and sales volumes. Additionally, total net production of oil and gas increased by 9.9% to 180.1 million barrels of oil equivalent. These positive results were influenced by the 14% rise in Brent crude, the global benchmark, during the first three months of 2024, driven by geopolitical uncertainty surrounding conflicts such as Israel-Hamas and Russia-Ukraine.
Factuality Level: 9
Factuality Justification: The article provides factual information about Cnooc’s record high net profit for the first quarter, supported by increased efforts in oil and gas exploration, and steady growth in net oil and gas production. It includes specific figures such as the net profit, revenue, and oil-and-gas sales increase. The article also mentions the reasons for the company’s strong performance, such as higher realized prices of products and increased sales volumes. The reference to Brent crude prices and geopolitical factors affecting it is relevant to the context.
Noise Level: 3
Noise Justification: The article provides relevant information about Cnooc’s record high net profit for the first quarter, supported by increased efforts in oil and gas exploration. It includes specific details such as the net profit amount, revenue, and percentage increases. The article also explains the factors contributing to the rise in oil-and-gas sales and total net production. However, the mention of geopolitical conflicts at the end seems somewhat irrelevant to the main focus of the article.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the oil and gas industry, particularly Cnooc, a Chinese oil major.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article does not mention any extreme events. It primarily focuses on Cnooc’s financial performance and the factors contributing to its record high net profit.
Public Companies: Cnooc (0883.HK)
Key People: Kimberley Kao (Author)
Reported publicly:
www.marketwatch.com 
