Chinese Oil Giant CNOOC Books Record-High Profit For 2022

CNOOC, the Chinese state-owned oil and gas giant, reported on Wednesday a record-high profit for 2022, thanks to the high oil and gas prices. 

CNOOC also boosted its net oil and gas production to 623.8 million barrels of oil equivalent (boe), which was a new record high for the company.

The Chinese giant saw its net profit double to $20.6 billion (141.7 billion Chinese yuan) last year as it "maximized its profit during the high oil price cycle."

Total revenues jumped by 71.6% year over year to $61.3 billion (422.2 billion yuan) in 2022.

CNOOC's average realized oil price for the year stood at $96.59 per barrel, up by 42.3% from 2021, while the average realized natural gas price jumped by up 23.5% annually to $8.58 per thousand cubic feet.

All-in cost was $30.39 per boe, "which effectively alleviated the pressure of rising commodity prices and continued to consolidate the company's cost competitiveness," CNOOC said.

The company's net proved reserves increased to 6.24 billion boe, with the reserve replacement ratio standing at 182% and the reserve life remaining at 10 years.

While CNOOC followed the international majors who posted record-breaking profits for 2022, another giant in China, state-controlled Sinopec, reported earlier this week lower-than-expected net figures for 2022, citing the impact of Covid lockdowns that stifled China's economy last year.

The company reported a net profit of around $9.64 billion, or 66.2 billion yuan, for 2022, which compared with a record result of $10.47 billion, or 72 billion yuan, a year earlier.

The main impact on Sinopec's performance came from lower fuel demand amid the lockdowns. At the same time, chemicals prices were down, affecting refiners' performance. Sinopec booked a loss at its chemicals department for the last quarter of the year, Bloomberg noted in a report on the news.

By Charles Kennedy for Oilprice.com

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