CNOOC LIMITED 2010 Mid-Year Review Analyst Briefing August 19, 2010
Agenda Overview Solid Operating Results Strong Financial Performance Outlook 3
Overview
Mid-Year Summary Successful exploration program 9 new discoveries, 7 successful appraisals and breakthrough in new areas Strong production growth Net production of 149.0 mm boe, up 40.8% YoY 4 new projects started production Robust…
Highlights 1H 2010 1H 2009 % Change Oil and gas sales (RMB mm) 67,639 32,523 108.0% Net profit (RMB mm) 25,988 12,402 109.6% EPS (RMB) 0.58 0.28 Dividends per share (HK) 0.21 0.20 Net production (mmboe) 149.0 105.8 40.8% Realized…
Solid Operating Results
Robust Production Growth (mm boe) 275-290 300 200 149.0 28.7 105.8 100 18.5 120.3 87.3 0 1H 2009 1H 2010 2010 E WTI US51.46 WTI US78.35 WTI US75.0 Oil Gas Given the strong production performance in 1H 2010, we are…
Net Production Leading Peers 1H 2010 Production & Change (YoY) mm boe 160 45% Production Change % 40% 140 35% 120 30% 100 25% 20% 80 15% 60 10% 40 5% 0% 20 -5% - -10% CNOOC OXY APC DVN APA CNQ ECA EOG TLM…
Production by Areas Net Production 1H 2010 1H 2009 %Change Malacca Strait PSC Beijing 0 100 200 300 km Bohai Bay Korea Production Summary Qingdao Crude Oil & Liquids (mmbbls) Indonesia Bohai Bay 67.4 42.3 59.5% Western South…
Production Growth Drivers (mmboe) New fields on stream in 2009 and 2010 Producing fields 170 + 10.1 +40.7 +2.9 149.0 150 - 10.6 130 Outperforming producing fields 105.8 110 90 70 Acquisition: Bridas 1H 2009 New fields Br…
Major Development Projects Jinzhou 25-1 Bozhong 3-2 Commencement of production Construction of Topside completed announced in Q1 Luda 32-2 Bozhong 19-4 Ready for production Commencement of production announced in Q3…
Oil and Gas Discoveries/Appraisals Indt. Discovery QHD33-1S Discoveries/Appraisals PSC Discovery Beijing Tianjin Indt. Appraisal Bohai Bay 9 discoveries PSC Appraisal PL9-1 PL9-1 KL6-4 0 100 200 300 km QK18-1 QHD33-1S KL6-4…
Breakthrough in New Areas Penglai 9-1 Significant discovery Pay zones of 94+119 meters Open up a new prospect for Bohai Bay Bohai Bay Kenli 6-4 Mid-sized discovery Pay zones of 101 meters Breakthrough in Laidong-Miaonan…
Breakthrough in New Areas Enping 24-2 Mid-sized discovery Oil pay zones of 138 meters First discovery in Enping trough Liuhua 16-2 Mid-sized discovery South Oil pay zones of 67 meters China Open up oil exploration in Baiyun Sea…
Disciplined Acquisitions Missan in Iraq: Resource rich area Fiscal regime and economics accepted by the oil industry Panyu 4-2/5-1 in offshore China: Core area Low risk Bridas: JV with experienced local partner to…
Solid HSE Performance One of our top priorities since established Strictly follow the HSE standards Incidents closely monitored and effectively handled No major accident in the past 10 years 1H 2010 1H 2009 Rate of…
Proactive Response to Emergency Suizhong 7 Emergency Response Bases in Tanggu offshore China, 7 more in planning Longkou Close cooperation with CNOOC Oil Spill Response Bases professional contractors Frequent equipment…
Strong Financial Performance
Key Financial Items - Consolidated (m m RMB) 1000000 1H 2010 1H 2009 Change % REVENUE Oil and gas sales 67,639 32,523 108.0% Marketing revenues, net 111 195 Other income 575 338 Revenue subtotal 68,325 33,056 106.7% EXPENSES…
Contributors to Net Profit Changes Net profit increased by 109.6% YoY mainly due to production growth and higher realized oil price. 22
Net Profit Leading Peers 1H 2010 Net Profit US million 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - CNOOC OXY DVN APA CNQ ECA TLM APC EOG Source: Company disclosure 23
All-in Cost All-in Cost (US/boe) All-in cost up 7.3% from 2009 Mainly due to DD&A growth 23.85 Controllable items decreased 24 22.23 2.50 3.32 1.30 Opex down 15.3% from 2009 18 1.46 0.60 0.69 SG&A down 11.0% from 2009 12 9.65…
DD&A Analysis DD&A of US11.75/BOE Up 21.8% from 2009 but still sitting on the low end among peers Mainly due to new fields that developed in high cost environment Lag between Capex and PD booking in certain projects (US/boe) 18…
Industry Costs Under Pressure Industry costs remain at high level. Source: Bernstein Research 27
Profitability Leading Peers US EBT per BOE Benchmark 50 Peers highest 40 30 20 10 - Peers lowest -10 CNOOC Peers Average -20 2001 2002 2003 2004 2005 2006 2007 2008 2009 Net Margin Benchmark Peers highest 50% 30% 10%…
Capital Expenditure (US Million) 7,776 Cost savings through high efficiency 8,000 More workload scheduled in 2H 2010 1,496 Delay by bad weather conditions 6,000 Completion Rate 4,000 4,809 Exploration wells vs. exploration…
Balance Sheet Movements Billion RMB Jun. 30, 2010 Total assets mainly including: Dec. 31, 2009 Cash and Cash 31.82bn cash and cash equivalents; equivalents, 31.8 Time deposits with 8.2bn time deposits with maturity Cash and Cash…
Change in Cash Position Million RMB Cash inflow (outflow) 1H 2010 1H 2009 Net cash flow from operating activities 37,932 17,021 Net cash flow from investing activities (29,282) 10,257 Net cash flow from financing 353 (4,984) Net…
High Dividend Payment Proposed 2010 interim dividend of HK0.21 per share: Dividend per share increased 5.0% YoY 31.5%(1) payout of net profit of 1H 2010 3.0% (2) dividend yield Interim dividend payment will be approximately…
Outlook
Sustainable, Stable and Profitable Growth Reserves Continue to add reserves through exploration and acquisitions RRR: 100% 9 development projects scheduled to come Development on stream in 2010 Production Production target…
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