Cnooc swings to profit on higher oil, gas revenue

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(MarketWatch) Cnooc Ltd. (0883.HK) swung to a net profit of 16.25 billion yuan (US$2.44 billion) in the first half from a net loss of CNY7.74 billion a year ago, partly on higher revenue from sales of oil and gas.

The major Chinese offshore oil producer said Thursday revenue rose 38% to CNY92.36 billion from CNY66.83 billion.

The company said combined oil-and-gas output in the six months ended June 30 was 237.9 million barrels of oil equivalent, down 1.5% from a year earlier. Oil-and-gas sales rose 36% to CNY74.94 billion, it said.

It declared an interim dividend of 0.20 Hong Kong dollars a share.

In the second half of the year, Cnooc said it expects global oil prices to hover at “a low level” for an extended period.

Nexen is a wholly owned subsidiary of Hong Kong-based CNOOC Limited and has 25% stake in the Stabroek Block offshore Guyana. ExxonMobil subsidiary Esso Exploration and Production Guyana Limited is operator and holds a 45 percent interest and Hess Corporation holds 30%.