• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 15 mins *Happy Dance* ... U.S. Shale Oil Slowdown
  • 4 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 53 mins Socialists want to exorcise the O&G demon by 2030
  • 6 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 13 hours UK, Stay in EU, Says Tusk
  • 6 hours How Is Greenland Dealing With Climate Change?
  • 2 days Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 3 hours Is Natural Gas Renewable? I say yes it is.
  • 3 days Chevron to Boost Spend on Quick-Return Projects
  • 3 days Conspiracy - Theory versus Reality
  • 2 days Maritime Act of 2020 and pending carbon tax effects
  • 12 hours Saudi Private Jet Industry Stalls After Corruption Crackdown
A Logical Move From An Inconsistent Tesla

A Logical Move From An Inconsistent Tesla

It seems that Musk and…

Can The U.S. Keep Its Nuclear Industry Afloat?

Can The U.S. Keep Its Nuclear Industry Afloat?

The United States is severely…

China’s Biggest Offshore Producer Posts First-Ever Half-Year Loss

Chinese oil worker

China’s biggest offshore oil and gas producer Cnooc Ltd (NYSE:CEO) reported on Wednesday its first-ever net loss for a half-year, of US$1.16 billion (7.74 billion yuan), on the back of hefty impairment charges and low crude prices.

Analysts had anticipated Cnooc to post a loss of US$1.2 billion, and the company itself had said it expected a loss for the first half this year.

For the first half of 2015, Cnooc had reported a net profit of US$2.2 billion (14.7 billion yuan).

This first half-year, however, Cnooc swallowed a US$1.56-billion (10.359 billion yuan) impairment and provision charge, most of which, according to chairman Yang Hua, resulted from Canadian oil sands assets, Bloomberg reports. Nevertheless, the low prices and the relatively high production costs would not dampen Cnooc’s confidence in its oil sands investments, the manager said in a briefing.

In January to June, Cnooc reported an all-in cost per barrel of oil equivalent (boe) down by 15.5 percent on the year to US$34.86. Capital expenditure was slashed by 33.3 percent.

The company’s production from offshore China increased 2.4 percent with production from new projects, while overseas output declined 2.9 percent, mostly due to the shut down of oil sands projects in Canada, following incidents and forest wild fires, Cnooc said. The group, however, kept its full-year target to produce 470 million-485 million barrels.

Related: Can Fire Ice Replace Both Oil And Renewables?

Despite the hefty half-year loss, Cnooc declared an interim dividend of US $0.02 (HK$0.12) per share, tax inclusive.

Analysts have recently said that Chinese oil companies may use dividend payouts in a bid to calm the fears of investors on the heels of the drop in energy prices.

“At current oil prices, China’s big oil companies have basically nothing but reasonable dividend payouts to keep current investors and attract new ones,” Tian Miao, an analyst at North Square Blue Oak Ltd, said.

China International Capital Corp. and Morgan Stanley had projected that Cnooc might consider a special dividend for investors.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News