Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

## 0883 Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

`Free Cash Flow = Operating Cash Flow - Capital Expenditures`

Using above formula to calculate Free Cash Flow for CNOOC Limited (0883), the free cash flow value is 65.456B.

All amounts in CNY

Operating Cash
147.89B
Capital Expenditure
-82.44B
Free Cash Flow
65.456B

CNOOC Limited has a positive free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

## 0883 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for CNOOC Limited (HKEX:0883).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 70.32B 24.96B 61.05B 52.67B
Depreciation 64.68B 60.22B 58.43B 56.44B
Change To Netincome 15.03B -7.62B 6.9B 13.94B
Change To Account Receivables -9.8B 5.62B -3.21B -940M
Change To Liabilities 7.44B -3.33B 1.44B 301M
Change To Inventory -99M 2.25B -1.3B 1.72B
Total Cash From Operating Activities 147.89B 82.34B 123.52B 124.4B
Capital Expenditures -82.44B -75.42B -72.01B -51.27B
Investments -17.23B 19.1B -655M -48.66B
Other Cashflows From Investing Activities 3.4B 5.46B 5.15B 3.89B
Total Cashflows From Investing Activities -96.23B -50.85B -67.46B -95.45B
Dividends Paid -20.47B -25.85B -28.97B -23.59B
Net Borrowings -6.88B -7.03B 2.59B 1.72B
Other Cashflows From Financing Activities -5.98B -5.82B -11.3B -5.24B
Total Cash From Financing Activities -33.33B -38.7B -37.69B -27.11B
Effect Of Exchange Rate -912M -2.45B 311M 208M
Change In Cash 17.41B -9.66B 18.68B 2.05B