China’s CNOOC rakes in record first-half profit on high oil prices amid Iran war

China National Offshore Oil Corporation (CNOOC), the country's leading offshore oil and gas producer, reported a record-breaking first-half profit of 85.8 billion yuan ($12.7 billion) in the six months ending June. The company's earnings surged 23.4% year-on-year, driven by higher oil prices and increased production amid the ongoing Iran war.

Revenue rose 16.9% to 242.7 billion yuan, also a new record high for an interim period. Oil and gas sales climbed 20% to 206.1 billion yuan, while net production rose 3.7% to a record 398.7 million barrels of oil equivalent. Both domestic and overseas production hit record highs, the company said. CNOOC's chairman, Zhang Chuanjiang, pledged to maintain focus on production targets, reserve expansion, technological advancements, and environmental protection in the second half of the year.

The interim dividend stood at HK$0.94 per share, up 28.8% from the previous year and the highest since the company's listing. Shares fell 0.8% to HK$24.92 in Hong Kong ahead of the earnings release. The strong results followed a volatile period for global energy markets, with escalating conflict in the Middle East and disruptions to Strait of Hormuz shipping driving oil prices to unprecedented highs.

Brent crude jumped from around $61 a barrel to over $100 in March and peaked at $115 in the second quarter before easing as ceasefire talks eased concerns about oil supply disruptions. Higher oil prices also boosted earnings at China Petroleum & Chemical Corporation (Sinopec), the largest oil refiner in China. Sinopec reported a 19.3% jump in first-half profit to 25.6 billion yuan and a 2% increase in revenue to 1.4 trillion yuan.

The company attributed the profit surge to increased crude purchases from non-Middle Eastern sources and adjustments in procurement amid geopolitical tensions. However, high oil prices also dampened domestic fuel consumption, leading to a 28.6% year-on-year decline in operating profit for Sinopec's marketing and distribution business.