China National Offshore Oil Company Limited (CNOOC Ltd.), a listed subsidiary of China National Offshore Oil Corporation (CNOOC), Wednesday announced its annual net profit dropped 33.6 percent in 2009 to 29.49 billion yuan (US$4.32 billion).

In a statement filed to the Hong Kong stock exchange, the country's biggest offshore oil and gas producer by output said its earnings per share stood at 0.66 yuan, down 33.3 percent year on year.

The profit decline, down from 44.38 billion yuan a year earlier, was a result of lower crude oil prices last year, as the global financial crisis led to a world recession that curbed demand for fuel, said the company.

The oil producer said its oil and gas output rose 17.2 percent to 227.7 million barrels of oil equivalent in 2009.

Despite a rise in oil and gas output, the company's revenue fell 16.5 percent year on year to 105.2 billion yuan.

Its average selling price of crude oil was US$60.61 a barrel, down 32.2 percent from 2008. While the average selling price of natural gas rose by 4.7 percent year on year to US$4.01 per thousand cubic feet.

Despite the effects of the global economic downturn, the company saw a double-digit expenditure increase on exploration, development and production.

In the statement, the company said it would expand capital expenditure covering 98 exploration wells as nine new projects were expected to be put into production in 2010.

The company's cost of producing one barrel of crude oil was US$22.08, a lower level compared with international counterparts.

Shares of CNOOC Ltd. closed at 12.78 HKD (US$1.65), down 1.084 percent from the previous close.

(Xinhua News Agency April 2, 2010)