Chinese oil producer CNOOC Ltd. (NYSE:CEO) reported annual profits for 2008 of $6.5 billion, up 42% from 2007. EPS was about $0.15. Production was up 14%, to 195.4 million barrels of oil equivalent. CNOOC noted that it’s all-in per barrel costs for 2008 equaled $19.78, and that the company’s average selling price for crude was $89.39/barrel.
The company’s cost reflect the cost advantages of drilling in the shallow (less than 500 feet) of waters of China’s Bohai Bay.
The company noted that its reserves replacement ratio fell to 60% in 2008, but that its “organic” replacement ratio was 111%. CNOOC has benefitted from new discoveries this year [https://247wallst.com/2009/03/19/chinese-expand-oil-drilling-ceo-cop/], but how these replacement ratio numbers work out is somewhat mysterious.
Still, compared to rival Chinese oil company China Petroleum & Chemical Corporation (NYSE:SNP), or Sinopec, CNOOC’s annual earnings look good. CNOOC does no refining, while Sinopec is China’s largest refiner. That’s what made the difference. Refining in China is a losing game because the government sets the retail price. E&P companies, like CNOOC, avoid that.
CNOOC shares are off about 52% from a 52-week high of $206.79. There’s been no pre-open action on the shares this morning.
Paul Ausick
March 31, 2009
The Easy Way To Retire Early
You can retire early from the lottery, luck, or loving family member who leaves you a fortune.
But for the rest of us, there are dividends. While everyone chases big name dividend kings, they’re missing the real royalty: dividend legends.
It’s a rare class of overlooked income machines that you could buy and hold – forever.
Click here now to see two that could help you retire early, without any luck required.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
