CNOOC's net profit attributable to parent company in 2025 declines by 11.5%. Huang Yongzhang: The fundamental way to cope with cycles lies in the company's internal strength.

Every reporter｜Yang Yu Every editor｜Xu Shaohang

On the evening of March 26, China National Offshore Oil Corporation (CNOOC, SH600938, stock price 40.93 yuan, market value 1.95 trillion yuan) released its annual report for 2025. At the performance communication meeting held on the same day, CNOOC’s Vice Chairman, Executive Director, CEO, and President Huang Yongzhang summarized the company’s operational performance over the past year with two keywords: “crossing the cycle” and “endogenous growth.”

In 2025, CNOOC achieved revenue of 398.22 billion yuan, a year-on-year decrease of 5.3%; net profit attributable to the parent was 122.08 billion yuan, a year-on-year decrease of 11.5%. For an oil and gas company primarily engaged in upstream business, the most direct impact was from the fluctuation of international oil prices, with the average Brent oil price in 2025 at $68.2 per barrel, down 14.6% year-on-year.

Huang Yongzhang stated that current geopolitical risks have intensified oil price volatility and increased uncertainties in the international energy landscape. Cyclical fluctuations are normal in the industry, and the fundamental way to respond to these cycles lies in the company’s internal strength. He also pointed out that the trend of energy transition is irreversible, and how to build the company’s second growth curve has become a strategic question that must be addressed.

Production growth but profit decline: Huang Yongzhang states “profit performance outperformed oil prices during the same period”

In 2025, China National Offshore Oil Corporation’s oil and gas output reached a new high. The total net production of oil and gas for the year was 777.3 million barrels of oil equivalent, an increase of 7% year-on-year. Among this, crude oil increased by 5.8%; natural gas saw a significant increase of 11.6%. Meanwhile, the company’s cost control was effective, with the main cost per barrel of oil at $27.9, down 2.2% year-on-year.

However, the decline in international oil prices last year still impacted the company’s performance. “From the global oil market perspective, supply has surged significantly, reaching a nearly 20-year high; demand growth has slowed, shifting the supply-demand balance from tight to loose,” said Mu Xiuping, Senior Vice President and CFO of CNOOC.

Huang Yongzhang affirmed the company’s annual performance: “In 2025, despite a 14.6% decrease in the average Brent oil price, the decline in our net profit attributable to the parent was far less than the decline in oil prices during the same period. It can be said that our profit performance outperformed oil prices during that time.”

Recently, the worsening situation in the Middle East has led to an increase in international oil prices. Mu Xiuping stated: “The fluctuations in international oil prices, especially the recent rise, are overall beneficial to the company. As these are recorded in the accounts, they will gradually be reflected in the company’s performance.”

In terms of oil and gas reserves, CNOOC has also advanced to a new level, with six new discoveries in oil and gas, successful evaluations of 28 oil and gas-bearing structures, and proven reserves reaching 7.77 billion barrels of oil equivalent.

It is reported that in 2026, CNOOC’s annual production target is set at 780 to 800 million barrels of oil equivalent. Compared with previous annual performance disclosures, CNOOC did not disclose a rolling three-year production target this time. Regarding this, Yan Hongtao, Senior Vice President of CNOOC, said that the company’s “14th Five-Year Plan” overall planning is still being drafted, and specific data will be released at that time. The overall trend remains continuous growth.

This year, CNOOC maintained a relatively high dividend payout level, with the board recommending a payout ratio of 45% for 2025, equivalent to an annual dividend of HKD 1.28 per share (pre-tax), with the final dividend of HKD 0.55 per share (pre-tax).

Will actively focus on and invest in new energy, but investment standards are based on benefits

While supporting steady production growth, CNOOC’s capital expenditure budget for 2026 remains stable, set between 112 billion and 122 billion yuan.

Mu Xiuping stated that from a global perspective, both geopolitical factors and market supply-demand are undergoing deep adjustments. China’s energy landscape is also being reshaped. Countries are seeking diversified and stable energy portfolios, but among these, oil and natural gas remain the most indispensable cornerstone energies. Therefore, the company will unswervingly strengthen its main oil and gas business, maintaining a certain level and intensity of investment in this sector.

On the other hand, Mu Xiuping said that the company will also actively focus on and invest in new energy, but investments will be evaluated based on benefit standards. CNOOC will promote the integrated development of oil, gas, and new energy according to certain return rate levels.

It is reported that CNOOC is actively cultivating new energy industries such as offshore wind power. By the end of 2025, it had secured over 11 million kilowatts of new energy resources and put into operation more than 1.08 million kilowatts. The company will develop and construct these resources year by year, with specific implementation schedules to be determined based on project actual conditions. The company will continue to increase efforts to acquire high-quality wind farm resources, striving to enter the top tier of offshore wind power.