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, China National Offshore Oil Corporation (SH600938, stock price 40.93 yuan, market value 1.95 trillion yuan) released its 2025 annual report. At the performance exchange meeting held the same day, Huang Yongzhang, the vice chairman, executive director, CEO, and president of China National Offshore Oil Corporation, summarized the company’s operational performance over the past year with two keywords: navigating cycles and endogenous growth.

In 2025, China National Offshore Oil Corporation achieved revenue of 398.22 billion yuan, a year-on-year decrease of 5.3%; net profit attributable to the parent company was 122.08 billion yuan, a year-on-year decrease of 11.5%. For an oil and gas company primarily engaged in upstream business, the fluctuating decline in international oil prices is the most direct influencing factor, with the average Brent crude oil price in 2025 at $68.2 per barrel, a year-on-year decrease of 14.6%.

Huang Yongzhang stated that the current geopolitical risks have intensified oil price fluctuations and increased uncertainty in the international energy landscape. Cycle fluctuations are the norm in the industry, and the fundamental way to cope with cycles lies in the internal capabilities of the enterprise. Huang Yongzhang also pointed out that the trend of energy transition is irreversible, and how to build the company’s second curve has become a strategic question that must be addressed.

In 2025, China National Offshore Oil Corporation’s oil and gas production reached a new high. The total net production of oil and gas for the year was 777.3 million barrels of oil equivalent, a year-on-year increase of 7%. Among this, crude oil increased by 5.8%; natural gas saw a significant increase of 11.6%. At the same time, the company’s cost control was effective, with the main cost per barrel of oil at $27.9, a year-on-year decrease of 2.2%.

However, last year’s decline in international oil prices 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’s growth has slowed, shifting the supply-demand balance from tight to loose,” said Mu Xiuping, senior vice president and CFO of China National Offshore Oil Corporation.

Huang Yongzhang expressed affirmation of the company’s annual performance: “In 2025, with the average Brent crude oil price declining by 14.6% year-on-year, the decrease in net profit attributable to the parent company was far lower than the decline in oil prices during the same period, indicating that the company’s profit performance outperformed the oil price during the same period.”

The recent deterioration of the situation in the Middle East has triggered a rise in international oil prices. Mu Xiuping stated: “The volatility of international oil prices, especially the recent rise, is favorable for the company overall. As it is accounted for, it will gradually reflect in the company’s benefits.”

In terms of oil and gas reserves, China National Offshore Oil Corporation also reached a new level, obtaining a total of 6 new oil and gas discoveries throughout the year, successfully evaluating 28 oil and gas structures, with net proven reserves of 7.77 billion barrels of oil equivalent.

It was reported that in 2026, China National Offshore Oil Corporation’s annual production target is set at 780 to 800 million barrels of oil equivalent. Compared to previous annual performance releases, China National Offshore Oil Corporation did not disclose the rolling three-year production targets this time. In this regard, Yan Hongtao, senior vice president of China National Offshore Oil Corporation, stated that the overall planning for the company during the 14th Five-Year Plan period is currently being compiled, and specific data will be released at that time, with the overall trend still being continuous growth.

In this year, China National Offshore Oil Corporation maintained a high dividend level, with the board recommending a 45% payout ratio for 2025, equivalent to an annual dividend of 1.28 Hong Kong dollars per share (before tax), including a final dividend of 0.55 Hong Kong dollars per share (before tax).

While supporting steady production growth, China National Offshore Oil Corporation’s capital expenditure budget for 2026 remains stable, set at 112 billion to 122 billion yuan.

Mu Xiuping stated that from a global perspective, current geopolitical and market supply-demand conditions are undergoing deep adjustments, and China’s energy landscape is also being reshaped. Countries are seeking diverse and stable energy combinations, but among these, oil and gas are still the most indispensable cornerstone energy sources. Therefore, the company will unswervingly consolidate 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 indicated that the company will also actively pay attention to and invest in renewable energy, but investments will be based on effective benefit standards. China National Offshore Oil Corporation will actively promote the integrated development of oil and gas alongside renewable energy according to a certain return rate level.

It was reported that China National Offshore Oil Corporation is actively cultivating renewable energy industries such as offshore wind power. By the end of 2025, the company had acquired more than 11 million kilowatts of renewable energy resources, with over 1.08 million kilowatts put into operation. The company will develop and construct the acquired resources year by year, with specific implementation timelines to be determined based on actual project conditions. The company will continue to increase its efforts to acquire quality wind farm resources, striving to enter the forefront of offshore wind power.

Cover image source: Every Media Asset Library