The Numbers: China’s CNOOC reported that oil and gas revenue increased by 13% in the first quarter to 55.31 billion yuan ($8.9 billion). The company didn’t release its first quarter net income.
What’s Interesting: The revenue increase is impressive given the lower crude oil sale prices in the quarter. An increase in production by the US and Iraq helped to boost CNOOC’s crude oil and natural gas output by 17% in the first quarter. That’s good news for CNOOC, which has seen been under pressure since its shares dropped 12% on the Hong Kong exchange over the last year.
The Takeaway: China’s largest offshore oil producer did not include its $15.1 billion acquisition of Canada’s Nexen, which was closed in February, in its initial 2013 output and spending targets. The deal is critical to CNOOC as older fields have caused its production to slow. The Nexen acquisition already contributed to its output increase in the first quarter, implying that CNOOC’s January production estimates of at least 338 million barrels of oil for 2013 are likely to be even higher. CNOOC also just started production on an oil reserve in the South China Sea.