Jingu Financial News | Haitong International issued a research report, pointing out that CNOOC (00883) achieved revenue of 326.024 billion yuan in the first three quarters of this year, a year-on-year increase of 6.26%; achieved a net income attributable to the parent company's shareholders of 116.659 billion yuan (equivalent to earnings per share of 2.45 yuan), a year-on-year increase of 19.47%.

The bank stated that since the first quarter of 2022, the company's quarterly net income has basically remained above 30 billion yuan, thus maintaining the overall profitability of the company at a high level. Maintaining high quarterly profits, in addition to oil prices, the growth of oil and gas production and the decrease in production costs are also important reasons. In the third quarter of this year, the average price of Brent crude oil was 78.71 USD/barrel, a year-on-year decrease of 8.40%, which posed a certain pressure on the profitability of the oil and gas extraction business. However, the company continued to achieve year-on-year growth in net income through cost reduction and increased production. In the third quarter, CNOOC achieved an oil and gas equivalent production of 179.5 million barrels, a year-on-year increase of 7.04%. Among them, crude oil production was 139.1 million barrels, a year-on-year increase of 7.58%; natural gas production was 235.5 billion cubic feet, a year-on-year increase of 5.28%.

The bank expects the company's EPS for 2024-2026 to be 2.97, 3.00, 3.08 yuan/3.27, 3.30, 3.39 Hong Kong dollars, and the BPS for 2024 to be 15.68 yuan/17.25 Hong Kong dollars. Referring to the valuation level of comparable companies, it gives a 1.4 times PB for 2024, corresponding to a fair value of 21.95 yuan/24.19 Hong Kong dollars (corresponding to a PE of 7.4 times in 2024), and gives an investment rating of "outperforming the market".