China National Offshore Oil Corporation, the country's largest offshore producer of crude oil and natural gas, said its profit jumped to the second highest ever last year against the backdrop of subdued oil prices but warned that the US tariff hikes and ensuing global trade frictions could worsen volatility in crude demand this year.

Net profit rose 11 percent to CNY137.9 billion (USD18.4 billion) in the 12 months ended Dec. 31 from the previous year, just short of CNOOC's record profit of CNY141.7 billion in 2022, the Beijing-based firm said in a financial report yesterday. Revenue rose 1 percent to CNY420.5 billion.

Despite the average price of oil falling 1.6 percent to USD76.75 per barrel and of natural gas 3.3 percent to USD7.72 per thousand cubic feet due to a drop in global energy prices, CNOOC's income from oil and gas sales rose 8 percent to CNY355.6 billion thanks to proactive production and reserve expansion, the company noted.

CNOOC made 11 new oil and gas discoveries last year, boosting its proven reserves by 7 percent to a record high of 7.3 billion barrels of oil equivalent as of Dec. 31, it said, adding that its reserve life remained stable at 10 years.

Recent US tariff hikes have injected uncertainty into the global economy, likely triggering significant fluctuations in crude oil demand, CNOOC's management said at an earnings conference call.

China's reliance on imported crude oil exceeds 70 percent, said Zhou Xinhuai, vice chairman and chief executive of CNOOC. As a key domestic energy producer, the company will firmly uphold its responsibility to safeguard national energy security by prioritizing reserve and production growth, cost control, and operational efficiency, he added.

Shares of CNOOC [SHA: 600938] ended 2.3 percent lower at CNY25.79 (USD3.55) apiece in Shanghai today, with the stock down 12.6 percent this year. Its Hong Kong-listed shares [HKG: 0883] fell 1.2 percent to HKD18.46 (USD2.37).