(Yicai) Oct. 25 -- Shares of China National Offshore Oil Corporation, one of the country's three oil and gas titans, fell after profit dropped in the third quarter and first nine months of the year as increased production failed to offset lower oil prices.

After retreating by as much as 3.9 percent this afternoon, CNOOC [SHA: 600938] finished the day 2.8 percent lower at CNY19.63 (USD2.68) a share in Shanghai. Its Hong Kong-listed stock [HKG: 0883] also shed 2.8 percent to close at HKD13.04 (USD1.67).

Net profit fell 8.1 percent to CNY33.9 billion in the three months ended Sept. 30 from a year ago, while revenue rose 5.5 percent to CNY114.8 billion, the Beijing-based firm said yesterday. Nine-month profit slid 10.2 percent on a 1.4 percent dip in revenue to CNY306.8 billion.

CNOOC said downward pressure continued to mount on the global economy in the first nine months as the US and European central banks raised interest rates. With slow growth in global crude oil demand, major oil-producing countries maintained policies to reduce output, leading to market concern about supply shortages, it added.

International oil prices rebounded in the first three quarters, but are still down after previous declines, CNOOC noted. The average price of Brent crude oil fell 20 percent to USD81.96 a barrel in the period, while CNOOC’s declined 24 percent to USD76.84, it pointed out.

CNOOC's average net realized gas price dipped 2.7 percent to USD7.92 per thousand cubic feet, mainly because the decrease in overseas natural gas prices was in line with market prices, it added.

CNOOC's net production reached a record high in the nine months, jumping 8.3 percent to 499.7 million barrels of oil equivalent. Domestic net output rose 6.7 percent to 345.5 million barrels, while overseas it climbed 11.8 percent to 154.1 million barrels. In the third quarter, net output in rose 7 percent from a year ago to 167.8 million BOE.

Set up in 1982, the state-owned company mainly focuses on the exploration, development, and production of oil and natural gas resources offshore. It is a major player in the industry and has a key role in China’s energy security and resource development.

Editor: Martin Kadiev