China’s biggest offshore oil and gas explorer, CNOOC Ltd., revealed a 7.9% increase in profits for the first half of 2013. This beats estimates that higher cost output would take its toll on profits this year.
CNOOC said in a statement yesterday that net income rose to 34.38 billion yuan ($5.6 billion) from 31.87 billion yuan a year earlier.
Canadian oil company Nexen, which CNOOC bought earlier this year for $15.1 billion made up about 0.5% of total profits, although it’s output accounted for nearly 13% of CNOOC’s total.
The acquisition of Nexen was China’s largest ever overseas acquisition.
Li Fanrong, CNOOCc’s chief executive officer, said at a press conference in Hong Kong yesterday:
“Operation cost at Nexen was a bit high but the acquisition provided exactly what the company had expected. In the longer term, the rich unconventional oil and gas reserves at Nexen will provide CNOOC the kind of resources to achieve consistent and solid growth.”