There were no surprise announcements in CNOOC Ltd's Q4 2017 results, as the company already disclosed the main details in its 2018 Strategy Preview (see below). Similar to its Chinese NOC peers, CNOOC Ltd announced improved financial results and production came in above guidance. Net earnings improved drastically from last year as a result of higher oil and gas prices, despite a RMB 9.1 billion (US$1.45 billion) impairment charge. Operating cash flow was also higher, but a 4% increase in operating costs was a surprise. The company remains committed to its 40-60% capital budget increase for 2018 as management feels more positive about the external environment.