Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

CNOOC (CEO) Q1 Revenues Decrease, Production Increases

Chinese offshore energy giant CNOOC Ltd. CEO reported first-quarter 2016 total revenue of 24.64 billion yuan (US$3.8 billion), down 30.7% year over year. This decline was mainly due to the decrease in international oil prices.

Production

In the first quarter, CNOOC’s net production was 124.3 million barrels of oil equivalent (MMBoe), up 5.1% from the year-ago level. The company’s production increased on the back of the new projects that were brought online during 2015 in offshore China.

Price Realizations

The company’s average realized oil price decreased 39.1% year over year to $32.54 per barrel. Realized gas price also fell 14.8% from the year-ago level to $5.69 per thousand cubic feet (Mcf).

Capital Expenditure

During the first quarter, CNOOC’s capital expenditure totaled 9.69 billion yuan, down 39.2% from the year-earlier period. This was primarily due to a cut in capital budget by the company to combat low oil prices.

Discoveries

During the first quarter, CNOOC made three new discoveries. It also successfully drilled four appraisal wells, including Caofeidian 12-6 oil and gas structure, in offshore China. Internationally, the company drilled three appraisal wells.

Notably, the company’s projects like Kenli 10-4 oilfield and Panyu 11-5 oilfield have begun production this year.

Zacks Ranks and Key Stock Picks

Currently, CNOOC carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are ReneSola Ltd. SOL, FutureFuel Corp. FF and Braskem S.A. BAK. Each of these stocks sports a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&... blog">Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CNOOC LTD ADR (CEO): Free Stock Analysis Report
 
BRASKEM SA (BAK): Free Stock Analysis Report
 
RENESOLA LT-ADR (SOL): Free Stock Analysis Report
 
FUTUREFUEL CORP (FF): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research