The Chinese oil and gas group Cnooc benefited much from higher oil prices last year. Thanks in part to the favorable price level, the company doubled its profit compared to a year earlier.
Of the three largest Chinese oil concerns, Cnooc is most dependent on price increases or decreases. Society is hardly involved in refining activities. That worked out well in 2018, as profits rose from 24.7 billion to 52.7 billion yuan, equivalent to 6.9 billion euros. Total revenues rose to just under 227 billion yuan, compared to 186.3 billion yuan a year earlier.
Cnooc also owes the higher profitability to cost savings. Interventions in the organization and technical innovation ensured that the costs of producing a barrel of oil were reduced by around 2 euros.
Shareholders also share in the profit. Cnooc proposes a higher dividend.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.