(MENAFN- ProactiveInvestors) (NYSE:CEO) rose in New York trading after China’s biggest offshore explorer reported a 6.6 percent increase in full-year profit beating the plunge in crude prices that has hit explorers across the world.
Shares of advanced 4.8 percent to $141.23 at 2:52 p.m. in New York.
Net income was 60.2 billion yuan ($9.69 billion) or 1.35 yuan per share for last year up from 56.5 billion yuan or 1.26 yuan per share a year earlier the Beijing-based company said in a statement today. That topped a consensus forecast of 52.3 billion yuan according to Reuters.
For the current year said cost cuts twinned with production growth will remain its priorities as it braces for long-term weakness in oil prices. Last month said it planned to cut 2015 capital expenditure by 26-35 percent to 70 billion-80 billion yuan while still trying to raise output by up to 15 percent.
"The company...has sensed the pinch of the 'cold winter'" 's chairman Wang Yilin said in the statement. "In 2015 we may face even more severe environment for our exploration and development."
Sales dropped 4 percent to 275 billion yuan.
Brent a benchmark for half of the world’s crude trading dropped 48 percent last year forcing explorers worldwide to pare investment and fire workers.
Oil and gas output rose 5.1 percent year on year to 432 million boe in 2014 as more than 10 new projects commenced production.
’s per barrel cost dropped to $42.30 in 2014 from $45.02 per barrel a year earlier and it lowered exploration drilling and construction costs by 9 billion yuan according to a presentation posted to the company’s website.
is seeking to slash expenses this year by as much as 35 percent from the levels of a year ago. “In 2015 the company will adjust its operating strategy to adapt to a more complex and changing environment in order to meet all the targets for the year” chief executive Li Fanrong said in a statement.
The company also said it has written off hundreds of millions of dollars worth of overseas assets marking another setback for the state-run energy giant as it copes with plunging oil prices.
The $842-million impairment is tied to properties in North America and the U.K. North Sea the company said in the presentation.
The company’s holdings in Alberta include stakes in Syncrude Canada Ltd. and Corp. In December started production at its steam-driven Kinosis project which has 20000 barrels per day of capacity.
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