China’s Cnooc posts higher profits

Cnooc, China's biggest offshore oil and gas explorer, posted a better-than-estimated 7.9 per cent increase in first-half profit as rising output helped counter higher costs, including at its Nexen purchase. The shares advanced the most in 19 months.

Net income rose to 34.38 billion yuan, or 0.77 yuan a share, from 31.87 billion yuan, or 0.71 yuan, a year earlier. That compared with the 30.25 billion yuan median estimate of eight analysts, according to data compiled by Bloomberg.

Nexen, a Canadian oil company Cnooc bought this year for $15.1 billion in China’s biggest overseas acquisition, contributed 0.5 per cent to profit, even as its output accounted for 13 per cent of the Chinese company’s total. Cnooc’s net production in the period rose 23 per cent to 198.10 million barrels of oil equivalent.– (Bloomberg)