Cnooc Ltd.’s profit dropped in the third quarter due to lower oil prices as China’s sputtering economic recovery kept a lid on domestic demand.

The Chinese offshore driller’s net income declined 8.1% to 33.9 billion yuan ($4.64 billion) from the same period last year, the company said in a statement on Tuesday. That followed an 11% drop in the first half.

Global benchmark Brent crude jumped by more than a quarter in the three months through September, but was still 12% lower on average than in the same period in 2022. With a relatively small refining business, Cnooc is more exposed than its peers to fluctuations in the oil price.

The state-owned company, which has a monopoly on offshore drilling in China, is also seeking to expand its operations internationally, including in Brazil, Guyana and Africa.

Read More: Cnooc Boss Raises Prospect That China’s Oil Demand Has Peaked

Cnooc’s oil and gas output rose to 167.8 million barrels equivalent in the third quarter, from 156.8 million barrels a year earlier, as new projects came on stream. It raised spending to 89.5 billion yuan in the first nine months, compared with 68.7 billion yuan in the same period in 2022.

The company set its budget for the full year at 120 billion to 130 billion yuan, from a previous target of 100 billion to 110 billion yuan, as it looks to fund an expansion in capacity.

Cnooc’s sister companies, Sinopec and PetroChina Co., will report earnings on Thursday and next Monday, respectively.

(Updates with full-year capex in penultimate paragraph)