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CNOOC posts flat H2 growth, slowest in over a year

(Agencies)
Updated: 2009-03-31 18:25

China's top offshore oil and gas producer CNOOC Ltd posted almost flat growth in second-half earnings, its slowest growth in over a year, as a steep decline in crude oil prices weighed on margins.

But full-year profit of 44.4 billion yuan ($6.51 billion) for CNOOC -- which makes 100 percent of its operating profits from exploration and production -- set a new record, after crude oil prices rallied in the first half of 2008.

Related readings:  CNOOC starts Huizhou refinery, eyes 70-80% runs  CNOOC starts production at offshore gas field  CNOOC to raise $11.7b in debt financing

CNOOC, the smallest of China's triumvirate of energy firms including PetroChina and Sinopec Corp, posted net profit of 16.9 billion yuan in the second half versus 16.71 billion yuan a year earlier.

For the full year, CNOOC's net profit soared 42 percent.

But analysts foresee weaker earnings for CNOOC this year with oil prices hovering around $49 a barrel, about two-thirds below the record $147 a barrel that was hit last July.

Shares in CNOOC fell 46 percent in the second half of last year, worse than PetroChina's 33 percent fall and Sinopec's 36 percent drop. The benchmark Hang Seng Index fell 35 percent.