Chinese offshore oil and gas giant CNOOC has announced a 13% decline in interim net profit for the first half of 2025, as lower crude prices offset the benefits of record-high oil and gas production.

According to a filing to the Hong Kong Stock Exchange, net profit attributable to equity shareholders fell to 69.5 billion yuan ($9.7 billion), following a record interim profit in 2024. In comparison, domestic rival PetroChina posted a 5.4% earnings drop to about $11.7 billion, while Sinopec’s net income plunged 40% to $2.99 billion.

Despite the decline in earnings, CNOOC achieved a significant production milestone, increasing oil and gas output by 6% year-on-year to a record 384.6 million barrels of oil equivalent. Natural gas production saw a 12% rise during the period.

“We steadily promoted construction of major projects and achieved record-high oil and gas production,” the company stated, highlighting improvements in reserve utilization, recovery rates, and maintaining a low decline rate for mature offshore fields.

CNOOC reported five new discoveries offshore China, including the Jinzhou 27-6 field in the Bohai Sea, and confirmed major oil and gas-bearing structures like Qinhuangdao 29-6. Additionally, the company commenced production at Bozhong 26-6 Phase I in the Bohai Bay, Brazil’s Buzios-7 and Mero-4 projects, and Phase 2 of the Shenhai-1 deepwater gas project in the South China Sea.

Beyond domestic operations, CNOOC strengthened its international footprint through advanced deepwater exploration in Guyana and signed its first oil exploration contract in Kazakhstan.

Revenue from oil and gas sales dropped 7% to 171.7 billion yuan compared to the same period last year. The company’s Hong Kong-listed shares fell 1.84% to HK$18.64 on Wednesday, down 2.5% year-to-date, while the Hang Seng Index has surged 25.6% this year.