China: Earnings Decline 11% at Oil Producer

Cnooc, a Chinese offshore oil producer, said first-half profit declined 11 percent, less than analysts had expected, as the company reined in operating costs. Net income slid to 14.6 billion yuan ($1.9 billion) from 16.3 billion yuan a year earlier, the Beijing-based company said, reflecting lower average oil prices. Oil and gas production rose to the equivalent of about 467,000 barrels of oil a day, Cnooc said. Oil and gas sales fell 6.4 percent, to 33.2 billion yuan. The average price Cnooc received for its oil fell 5.8 percent, to $58.80 a barrel. Gas prices gained 1.3 percent.