Lower Oil Prices Impact Profits; CNOOC Hits Record High Production in 2025 and Defines 2026 Targets

The 2025 operating data of China's leading offshore crude oil and natural gas producer has been officially released. Affected by the decline in international oil prices, the full-year net profit fell year-on-year and was lower than analysts' expectations. However, the oil and gas production hit a record high in the same period, demonstrating strong production resilience.

Data shows that the company achieved a net profit of $17.7 billion (equivalent to 122.1 billion yuan) in 2025, a decrease of 11.5% from 2024, which was lower than the average estimate of $18.9 billion (equivalent to 130.7 billion yuan) given by analysts in a Bloomberg survey. The adverse impact of falling oil prices was the main reason for the profit fluctuation.

In terms of revenue structure, the company's oil and gas sales revenue in 2025 decreased by 5.6% compared with 2024, of which oil sales revenue fell by 9.1%, while natural gas sales revenue increased by 16.9% year-on-year, showing a differentiated trend of "oil decline and gas increase". In terms of prices, the realized natural gas price rose by 3% year-on-year, while the realized crude oil and liquids price fell by 13.4%, from $76.75 per barrel in 2024 to $66.47 per barrel in 2025. The price decline directly affected the overall profit level.

Despite the drag on profits, the company achieved a major breakthrough in oil and gas production in 2025. The full-year net oil and gas production reached a record high of 777.3 million barrels of oil equivalent (boe), an increase of 7% compared with 2024. Offshore oil and gas business has become a key support for the growth of China's oil and gas reserves and production, providing a solid guarantee for the stability of energy supply.

Faced with the complex market environment, the company has clarified its 2026 development plan, aiming to further increase oil and gas reserves and production, build competitive advantages through international expansion, and set the full-year oil and gas production target between 780 million boe and 800 million boe.

Regarding the 2026 macroeconomic outlook, relevant research and judgment show that the world is facing increased geopolitical risks and frequent regional conflicts, and the uncertainty surrounding oil prices will increase significantly; at the same time, global inflationary pressures persist, economic growth remains weak, and the growth divergence among different economies will further intensify. Against this background, steadily promoting capacity improvement and international layout has become an important measure for the company to cope with market fluctuations.