CNOOC 0883

[winston]

not vested

Valuation

We value CNOOC based on discounted cash flow (DCF) with 10% weighted average cost of capital (WACC), 0% terminal growth, and long-term oil price assumption of US$60/bbl to derive our HK$ 15.00 target price (TP).

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... 883_HK.xml

[winston]

not vested

CNOOC Ltd (883 HK) - Riding on higher oil prices

CNOOC Ltd is the largest producer of offshore crude oil and natural gas in China and one of the largest pure play oil and gas exploration and production companies in the world.

Its earnings fluctuate with oil & gas prices, though the company has been focusing on cost control and organic growth in recent years.

The group’s good cost control is one of CNOOC’s key competitive strengths to create shareholders’ value.

However, potential asset injections from the parent has introduced uncertainty with regards to its pure play status, and risks relating to Trump’s Executive Order is an added concern. BUY.

Source: OCBC

[winston]

CNOOC Ltd (883 HK) - Fundamentals remain positive

Near-term natural gas prices have surged and the increase in energy costs has broadened to other commodities such as oil and coal.

Our bank has also recently increased the 3-month forecast for Brent crude to USD85/bbl, before drifting back to below USD80/bbl over a 12-month time frame.

CNOOC would benefit from the higher commodity prices, though the stock continues to be on the US “Entity List”; so far sanctions have had minimal impact on company’s operations.

Looking ahead, a development to look out for is the planned A-share listing, which would broaden the investor base of the company.

Given CNOOC’s ample cash position, capital-raising is likely not the sole purpose of the A-share listing. BUY.

Source: OCBC

[winston]

vested

M Stanley Ramps up CNOOC (00883.HK) TP to $14, Rated Overweight

Morgan Stanley lifted the 2Q22E for Brent oil futures to USD110 per barrel and hiked the target price of CNOOC (00883.HK) from $13.8 to $14, with an Overweight rating.

From a cost perspective, CNOOC was predicted to continue outperforming its two peers among China's "three oils", the broker remarked.

The low-cost strategy and outstanding execution record should place CNOOC at a prime position to benefit from the oil price rally.

Related News: JPM Hikes PETROCHINA TP to $5.15, Cuts SINOPEC CORP TP to $4.6

In additional, the company's commitment on dividend distribution in 2022-24 has further attested the management's confidence in the oil prices and the company's earnings, Morgan Stanley added.

Source: AAStocks Financial News

[winston]

vested

C Suisse Raises CNOOC (00883.HK) TP to $13.3; Div, Buyback Vows Welcomed by Mkt

2022/01/12

CNOOC (00883.HK)'s 2022 business strategy indicated its growth outlook, with a focus on dividend and share buyback vows for the first time in CNOOC's history.

Credit Suisse expected the strategy to be welcomed by the market, with positive response from CNOOC's share price.

CNOOC announced to distribute FY21 special dividend and conduct share buyback, with $0.7 minimum DPS guarantee over 2022-24E, implying a guaranteed dividend yield of 8% for the next three years.

Overall, the stock was kept at Outperform, with target lifted from $13 to $13.3.

Related News: M Stanley Ramps up CNOOC (00883.HK) TP to $14, Rated Overweight

Source: AAStocks Financial News

[winston]

not vested

Cnooc plans share buybacks after record profit on pricey oil

Oil and gas output rose 8.5% to 573 million barrels of oil equivalent.

Cnooc plans to propose at its shareholder meeting annual dividends of at least 40% of profits from 2022 to 2024, with an absolute dividend of at least HK$0.70 per share.

Capital expenditures of 90 billion to 100 billion yuan this year, up from 88 billion in 2021.

Cnooc’s Bohai Bay production hub last year became the country’s largest, and still has room to grow.

Planned a 35 billion yuan IPO on the Shanghai Stock Exchange that could also bolster upstream drilling and funding for its new renewable segment. The China Securities Regulatory Commission gave written approval for the listing Wednesday.

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... pricey-oil

[winston]

not vested

Cnooc weighs sale of US$3 billion UK North Sea portfolio

by Dinesh Nair and Vinicy Chan

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... -portfolio

[winston]

not vested

Brokers│Views

JPMorgan│may declare strong div post A-shr listing; 2022 NP may set new high

HSBC Global Research│more stock price catalysts in future

Credit Suisse│2021 result strong, but not to declare 2H21 div before A-shr listing

Related News: CNOOC 2021 NP Soars 1.82x YoY to RMB70.32B; No Final Div due to A-shr Issue

Source: AAStocks Financial News

[winston]

not vested

CNOOC eyes West retreat as delist watchlist grows

CNOOC (0883) is preparing to exit its operations in Britain, Canada and the United States over fears of possible sanctions, sources said.

This news came as US regulators added 12 US-listed Chinese firms including a unit of Melco International Development (0200) and internet conglomerate Sohu to a delisting watchlist.

CNOOC, the state-owned oil giant, is preparing to exit its businesses in the three Western countries because of concerns in Beijing the assets could become subject to Western sanctions, the sources said.

The US said last week China could face consequences if it helped Russia to evade Western sanctions that have included financial measures that restrict Russia's access to foreign currency and make it complicated to process international payments.

Companies periodically carry out reviews of their portfolios, but the exit being prepared would take place less than a decade after CNOOC entered the three countries via a US$15 billion (HK$117 billion) acquisition of Canada's Nexen, a deal that transformed the Chinese champion into a leading global producer.

The assets, which include stakes in major fields in the North Sea, the Gulf of Mexico and large Canadian oil sand projects, produce around 220,000 barrels of oil equivalent per day, Reuters calculations found.

As it seeks to leave the West, CNOOC is looking to acquire new assets in Latin America and Africa, and also wants to prioritize the development of large, new prospects in Brazil, Guyana, and Uganda, the sources said.

Source: The Standard

https://www.thestandard.com.hk/section- ... list-grows

[winston]

not vested

CNOOC profits up 131pc

Mainland oil giant CNOOC (0883) recorded a 131 percent year-on-year jump in its first-quarter net profit.

That came in at 34.3 billion yuan (HK$40.6 billion) thanks to a higher oil price and sales. It has proposed a special dividend of HK$1.18.

It had last month delayed the announcement of 2021's dividend allocation until after it completed its Shanghai listing, which was achieved last week.

The firm has promised share buybacks this year and annual dividends of at least 40 percent of profits from 2022 to 2024.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... s-up-131pc