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 journalist｜Yang Yu Every editor｜Xu Shaohang

On the evening of March 26, China National Offshore Oil Corporation (SH600938, stock price 40.93 yuan, market value 1.95 trillion yuan) released its 2025 annual report. At the performance communication meeting held on the same day, Huang Yongzhang, Vice Chairman, Executive Director, CEO, and President of CNOOC, summarized the company’s operational performance over the past year with two keywords: navigating cycles 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 company was 122.08 billion yuan, a year-on-year decrease of 11.5%. For an upstream-focused oil and gas company, the fluctuation and decline of international oil prices are the most direct influencing factors, with the average Brent crude price in 2025 being $68.2 per barrel, a year-on-year decrease of 14.6%.

Huang Yongzhang stated that the current geopolitical risks have intensified oil price fluctuations and increased the uncertainty of the international energy landscape; cyclical fluctuations are the norm in the industry, and the fundamental way to respond to cycles lies in the company’s internal capabilities. Huang also pointed out that the trend of energy transition is irreversible, and how to build the company’s second curve has become a strategic question that must be answered.

Production growth but profit decline Huang Yongzhang says “profitability outperformed oil prices during the same period”

In 2025, CNOOC’s oil and gas production reached a new high. The net production of oil and gas for the year was 777.3 million barrels of oil equivalent, a year-on-year increase of 7%. Among them, crude oil increased by 5.8%; natural gas saw a significant increase of 11.6%. At the same time, the company’s cost control was effective, with the main cost per barrel being $27.9, a year-on-year decrease of 2.2%.

However, the decline in international oil prices last year still had a certain impact on the company’s performance. “From the perspective of the global oil market, the supply side has significantly increased, reaching a nearly 20-year high; the demand side’s growth has slowed, and the supply-demand balance has shifted from tight to loose,” said Mu Xiuping, Senior Vice President and Chief Financial Officer of CNOOC.

Huang Yongzhang affirmed the company’s annual performance: “In 2025, with the average Brent crude price decreasing by 14.6%, the decline in net profit attributable to the parent company was far lower than the decline in oil prices during the same period, so it can be said that the company’s profitability outperformed oil prices during the same period.”

Recently, the deteriorating 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 favorable for the company as they will gradually be reflected in the company’s benefits as they are accounted for.”

In terms of oil and gas reserves, CNOOC also reached a new level, obtaining six new oil and gas discoveries throughout the year and successfully evaluating 28 oil and gas-bearing structures, with net proven reserves reaching 7.77 billion barrels of oil equivalent.

It was reported that in 2026, CNOOC’s annual production target is set at 780 to 800 million barrels of oil equivalent. Compared to previous annual performance releases, CNOOC did not disclose a three-year rolling production target this time. In response, Yan Hongtao, Senior Vice President of CNOOC, stated that the overall planning for the company’s 14th Five-Year Plan is currently being compiled, and specific data will be released at that time, with the overall trend still being continuous growth.

This year, CNOOC maintained a high dividend level, with the board recommending a dividend payout ratio of 45% for 2025, translating to an annual dividend of 1.28 Hong Kong dollars per share (tax-inclusive), of which the final dividend is 0.55 Hong Kong dollars per share (tax-inclusive).

Will actively focus on and invest in new energy but investment has efficiency standards

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

Mu Xiuping stated that from a global perspective, geopolitical factors and market supply and demand are undergoing deep adjustments, and China’s energy landscape is also being reshaped. All countries are seeking a diversified and stable energy mix, but in this context, oil and gas remain the most indispensable cornerstone energy sources. Therefore, the company will unswervingly strengthen its oil and gas core business, maintaining a certain level and intensity of investment in the oil and gas sector.

On the other hand, Mu Xiuping stated that the company will also actively pay attention to and invest in new energy; however, investments will be based on efficiency standards. CNOOC will actively promote the integrated development of oil and gas and new energy according to a certain return rate.

It was reported that CNOOC is actively cultivating new energy industries such as offshore wind power. By the end of 2025, the company had obtained over 11 million kilowatts of new energy resources and had put into operation over 1.08 million kilowatts. The company will develop and construct the acquired resources year by year, with specific implementation timelines depending on actual project conditions. The company will continue to strengthen its efforts to acquire high-quality wind farm resources, striving to enter the top tier of offshore wind power.