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, CNOOC (SH600938, stock price 40.93 yuan, market value 1.95 trillion yuan) released its annual report for 2025. At the performance exchange meeting held on the same day, CNOOC’s Vice Chairman, Executive Director, CEO, and President Huang Yongzhang summarized the company’s operating performance over the past year with two keywords: navigating the cycle and organic growth.

In 2025, CNOOC achieved revenue of 398.22 billion yuan, a year-on-year decrease of 5.3%; net profit attributable to shareholders was 122.08 billion yuan, a year-on-year decrease of 11.5%. For a primarily upstream oil and gas company, the direct impact of fluctuating international oil prices is evident, with the average Brent crude oil 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 volatility and increased uncertainty in the international energy landscape. The cyclical fluctuations are a norm in the industry, and the fundamental way to deal with cycles lies in the internal capabilities of the company. Huang 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 claims “profitability outperformed oil prices during the same period”

In 2025, CNOOC’s oil and gas production reached a new high. The annual net production of oil and gas 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 achieved notable cost control, with major costs at $27.9 per barrel, a year-on-year decrease of 2.2%.

However, the decline in international oil prices last year still had some 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 has slowed down, 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 oil price down 14.6% year-on-year, the decline in our net profit attributable to shareholders was much lower than the drop in oil prices during the same period, which indicates that our profitability outperformed oil prices.”

The recent deterioration of the situation in the Middle East has led to an increase in international oil prices. Mu Xiuping stated, “The volatility of international oil prices, especially the recent price increase, is beneficial for the company. As it is accounted for, it will gradually reflect in the company’s performance.”

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

It was introduced 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 plan for the company during the 14th Five-Year Plan period is being formulated, and specific data will be released at that time, with the overall trend still being continuous growth.

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

Will actively focus on and invest in new energy But investments have efficiency standards

While supporting stable 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-demand are undergoing deep adjustments, and China’s energy landscape is also being reshaped. Countries are seeking diverse and stable energy combinations, but amidst this, oil and gas remain the most essential cornerstone energies. Therefore, the company will steadfastly strengthen its oil and gas main business, maintaining a certain level and intensity of investment in the oil and gas sector.

On the other hand, Mu Xiuping noted that the company will also actively pay attention to and invest in new energy, but investments will have efficiency standards. CNOOC will promote the integrated development of oil, gas, and new energy based on certain return rate levels.

It was introduced that CNOOC is actively cultivating new energy industries such as offshore wind power. By the end of 2025, it has acquired new energy resources exceeding 11 million kilowatts, with over 1.08 million kilowatts put into production. The company will develop and construct the acquired resources year by year, with specific implementation schedules depending on actual project conditions. The company will continue to intensify efforts in acquiring quality wind farm resources, striving to enter the forefront of offshore wind power.

Cover image source: Every Media Resource Library