CNOOC sales drop 15% as out­put falls

China Daily (USA) - - BUSINESS - By BLOOMBERG

CNOOC Ltd, China’s big­gest off­shore oil and gas pro­ducer, posted a 15 per­cent fall in third-quar­ter sales as out­put de­clined with cap­i­tal spend­ing. Its shares led de­clines among en­ergy com­pa­nies in Asia on Thurs­day.

Rev­enue from oil and nat­u­ral gas was 30.75 bil­lion yuan ($4.5 bil­lion) in the three months ended on Sept 30, the Bei­jing-based com­pany said in a state­ment to the Hong Kong stock ex­change on Wed­nes­day. CNOOC, which doesn’t re­port quar­terly profit, said out­put fell 7.7 per­cent.

CNOOC fell as much as 3.4 per­cent in Hong Kong on Tian Miao, Thurs­day be­fore trad­ing down 3.1 per­cent at HK$10.16 ($1.31) at 9:57 am lo­cal time. The city’s bench­mark Hang Seng In­dex slipped 0.5 per­cent, while the MSCI Asia Pa­cific AP En­ergy In­dex lost 0.9 per­cent.

“CNOOC’s sales de­cline was well-ex­pected as oil prices haven’t re­bounded to a level that may push the off­shore pro­ducer to in­crease out­put,” Tian Miao, a Bei­jing-based an­a­lyst at North Square Blue Oak Ltd said. “Fourth-quar­ter out­put should be sim­i­lar to the third-quar­ter, and CNOOC may con­tinue to pay a high div­i­dend to please share­hold­ers in the low crude price en­vi­ron­ment.”

Brent oil, the global bench­mark, av­er­aged $46.99 a bar­rel in the third quar­ter, an 8.4 per­cent de­cline from the same pe­riod last year. The com­pany’s re­al­ized oil price dur­ing the quar­ter fell 13.5 per­cent from the pre­vi­ous pe­riod, while the nat­u­ral gas price tum­bled 18.6 per­cent.

Out­put de­clines in the third quar­ter were caused by oil­field main­te­nance, bad weather and a lack of new projects, chief fi­nan­cial of­fi­cer Zhong Hua said in a con­fer­ence call af­ter the earn­ings were re­leased.

“CNOOC’s sales de­cline was well-ex­pected as oil prices haven’t re­bounded to a level that may push the off­shore pro­ducer to in­crease out­put.” a Bei­jing-based an­a­lyst at North Square Blue Oak Ltd

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