CNOOC Ltd, China's biggest offshore oil and gas producer, said its 2010 net profit surged 84.5 percent on higher oil prices as demand increased with the global economic recovery. The company reported a net profit of 54.41 billion yuan ($8.2 billion), up from 29.49 billion yuan in 2009 when it was hammered by low oil prices due to the financial crisis, according to a filing to the Hong Kong Stock Exchange.
Revenue jumped 74.0 percent last year to 183.05 billion yuan, up from 105.20 billion yuan in 2009, the listed unit of state-owned China National Offshore Oil Corporation said. "In 2010, the world economy continued to recover from the financial crisis with the support of the government's loosening monetary policies and economic stimulus plan," the company said.
"Due to rising demand, international oil prices increased considerably over the previous year," it said, adding its net oil and gas production surged substantially by 44.4 percent last year.
The company said it expected "stable growth" on strong economic expansion in China and continued recovery in the global economy, but warned rising inflation could push costs higher and erode its profit margin.
"Looking forward to the year 2011, the world economy is expected to maintain its pace of recovery, and the economy of China is expected to maintain its rapid growth," it said. New York's main contract, light sweet crude for delivery in May, eased 26 cents to $104.71 per barrel in Asian trade on March 23 but analysts said the escalating unrest in Libya and the rest of the Middle East and North Africa would push prices higher.
CNOOC said it would invest more in exploration and have more than 10 new projects under construction in 2011, after "successfully expanding its scope of business to South America and the Middle East". CNOOC paid $3.1 billion in March 2010 for a 50 percent stake in Bridas Corporation, which was previously wholly-owned by Argentina's Bridas Energy Holdings.