Cnooc Profit Drops on Lower Oil Price Despite Rising Output

  • Full-year capex budget raised to fund expansion in capacity
  • State firm has a monopoly on offshore exploration in China

A China National Offshore Oil Corp. filling station in Shanghai, China.

Photographer: Raul Ariano/Bloomberg
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Cnooc Ltd.’s profit dropped in the third quarter due to lower oil prices as China’s sputtering economic recovery kept a lid on domestic demand.

The Chinese offshore driller’s net income declined 8.1% to 33.9 billion yuan ($4.64 billion) from the same period last year, the company said in a statement on Tuesday. That followed an 11% drop in the first half. Revenue over the quarter rose 5.5% to 114.8 billion yuan as production expanded.