CNOOC reports lower than expected earnings

CNOOC (CEO.NYSE, 0883.HKG), the listed subsidiary of China’s largest offshore oil producer, reported that profits fell 9.3% to US$10.3 billion (RMB63.7 billion) in 2012, missing analyst estimates, Bloomberg reported. The decline in net earnings is attributed to rising costs as the company pushes to increase production, with the state-owned oil producer reporting that sales increased by 2.8% to US$40 billion last year. CNOOC said Friday its acquisition of Canadian oil company Nexen will add 20% to its production capacity and 30% to its reserves. The company said it will release its plan for the integration of Nexen into its existing operations in the second half of 2013.