In the first half of this year, the company achieved a net income of 79.731 billion yuan, the best profit in the company's history for the same period.
Zhongtong Finance APP learned that Haitong Int'l released a research report stating that it initiated coverage on CNOOC (00883) for the first time, giving it an 'outperform' investment rating. It is expected that the company's EPS for 2024-2026 will be 2.97, 3.00, 3.08 yuan/3.27, 3.30, 3.39 Hong Kong dollars respectively, with a 2024 BPS of 15.68 yuan/17.25 Hong Kong dollars and a target price of 24.19 Hong Kong dollars. CNOOC released its 2024 half-year report, achieving a revenue of 226.77 billion yuan in the first half of this year, an 18.07% year-on-year growth; and achieving a net income of 79.731 billion yuan attributable to the parent company, a 25.05% year-on-year growth.
Haitong International's main viewpoints are as follows:
Achieved the best profit for the same period in history in 1H24.
In the first half of this year, the company achieved a net income of 79.731 billion yuan, the best profit in the company's history for the same period. The rise in crude oil prices and the increase in oil & gas production were important reasons for the company's impressive profit.
Steady growth in oil & gas production.
In the first half of this year, the company achieved an oil & gas production of 0.362 billion barrels of oil equivalent; including a natural gas production of 460.9 billion cubic feet, a 10.9% year-on-year increase; and a petroleum liquid production of 0.284 billion barrels, an 8.8% year-on-year increase.
Crude oil prices have increased.
In the first half of this year, the company's crude oil prices reached $80.32 per barrel, a year-on-year increase of 6.75%. In addition, the company's natural gas prices reached $7.79 per thousand cubic feet, which is basically unchanged year-on-year.
Second-quarter profits exceeded 40 billion yuan.
The company's net income for the first and second quarters of this year was 39.7 billion yuan and 40 billion yuan respectively, with quarterly profits exceeding 40 billion yuan. Brent crude oil prices for the first two quarters of this year were $81.76 and $85.03 per barrel, respectively, with sequential increases driving profit improvement; in terms of production, the company's oil and gas production in the first two quarters of this year was 0.18 billion barrels of oil equivalent and 0.183 billion barrels of oil equivalent, with a slight increase on a quarterly basis.
Capital expenditure in the first half of the year was 63.125 billion yuan, a year-on-year increase of 11.7%.
In the 63.125 billion yuan of capital expenditure in the first half of this year, development investment reached 40.221 billion yuan, a year-on-year increase of 13.3%. The growth in development investment has laid a solid foundation for the increase in oil and gas production.
Risk Warning: Significant fluctuations in oil and gas prices have a significant impact on the company's profitability.