CNOOC (883) Q2 2025 earnings summary

Executive summary

• H1 net oil and gas production reached a record 384.6 million BOE, up 6.1% YoY; natural gas output rose 12.0%.

• Net profit attributable to shareholders was RMB69,533 million, down 12.8% YoY, as lower oil prices partly offset production growth and efficiency gains.

• Revenue fell 8.4% to RMB207,608 million; oil and gas sales revenue declined 7.2% to RMB171,745 million.

• Interim dividend declared at HK$0.73/share, totaling RMB31,602 million, with a 45.51% payout ratio.

Financial highlights

• Basic and diluted EPS were RMB1.46, down ~13% YoY.

• Net cash flows from operating activities were RMB109,182 million, down 7.9% YoY; free cash flow was RMB57 billion.

• Total assets were RMB1.119 trillion; equity was RMB788.4 billion and the asset-liability ratio was 29.5%.

• H1 capital expenditure was RMB57.6 billion, down 8.8% YoY, with spending executed according to plan.

• Operating profit was RMB95.1 billion, versus RMB105.5 billion in H1 2024.

Outlook and guidance

• 2025 production target is 760–780 million BOE, with a reserve replacement ratio target of at least 130%.

• 2025 CapEx budget is RMB125–135 billion; H2 CapEx is expected to exceed H1.

• Priorities include reserve and production growth, technological innovation, green development, and cost competitiveness.

• Full-year production target remains achievable despite typhoon impacts; ~250,000 tonnes of output had been affected, within budgeted allowances.

• H2 cost initiatives include technology, lean management, investment optimization and safe operations; cost reduction will not be pursued without limit.