Investment Rating - Maintains an **OUTPERFORM** rating with a target price of HK$24.19 [1] - The current price is HK$17.30 as of November 11, 2024 [1] Core Views - The company achieved a revenue of RMB 326.024 billion in the first three quarters of 2024, a year-on-year increase of 6.26% [1] - Net profit attributable to shareholders reached RMB 116.659 billion, up 19.47% year-on-year, with diluted EPS of RMB 2.45 [1] - Despite a decline in Brent crude prices, the company maintained strong profitability through cost reduction and increased production [1] - Single-quarter net profit has remained above RMB 30 billion since Q1 2022, driven by growth in oil and gas production and lower production costs [1][6] Financial Performance - Q3 2024 Brent crude average price was $78.71/barrel, down 8.40% year-on-year, but the company still achieved year-on-year net profit growth [1] - Oil and gas equivalent production in Q3 2024 was 179.50 million barrels, up 7.04% year-on-year, with oil liquid production at 139.1 million barrels (up 7.58%) and natural gas production at 235.5 billion cubic feet (up 5.28%) [1] - Forecasted EPS for 2024-2026 are RMB 2.97, 3.00, and 3.08, respectively, with a 2024 BPS of RMB 15.68 [1][7] Valuation and Peer Comparison - The company is valued at a 2024E P/B multiple of 1.4x, with a target price of RMB 21.95/HK$24.19 [1][7] - Compared to peers, the company's valuation is higher than PetroChina (0.64x P/B) and Sinopec (0.57x P/B) but lower than ExxonMobil (2.02x P/B) [2] Key Financial Metrics - Revenue for 2024E is projected at RMB 444.187 billion, up 7% year-on-year, with net profit expected to grow 14% to RMB 141.224 billion [4] - Gross profit margin is forecasted to remain strong at 51.1% in 2024E, with ROE at 18.9% [4] - The company's debt-to-asset ratio is expected to decrease to 31.5% in 2024E, reflecting improved financial health [4]

Investment Rating - The report maintains a "Buy" rating for the company, citing strong fundamentals and consistent performance [1][6] Core Views - The company achieved record-high net profit in H1 2024, with revenue reaching RMB 226.8 billion, up 18.1% YoY, and net profit attributable to shareholders rising 25% YoY to RMB 79.7 billion [1][4] - Free cash flow remained robust at RMB 63.99 billion, with a capital expenditure of RMB 63.1 billion, up 11.7% YoY, completing 47-51% of the annual budget [1][4] - The company declared an interim dividend of HKD 0.74 per share, a 25.4% YoY increase, with a payout ratio of 40.3% [1][4] Financial Performance - Net production reached a record high of 362.6 million barrels of oil equivalent (BOE) in H1 2024, up 9.3% YoY, driven by contributions from domestic fields like Kenli 6-1 and Bozhong 19-6, as well as the Payara project in Guyana [1][5] - Average realized oil price increased by 9.2% YoY to USD 80.32 per barrel in H1 2024, while average realized gas price declined by 4.1% YoY to USD 7.79 per thousand cubic feet [1][5] - The company's cost control was effective, with a 1.5% YoY reduction in barrel oil equivalent cost to USD 27.75 per BOE [6] Future Projections - The report forecasts net profit attributable to shareholders for 2024-2026 at RMB 141.8 billion, RMB 152.1 billion, and RMB 163.3 billion, with YoY growth rates of 14.5%, 7.2%, and 7.4%, respectively, assuming a Brent crude price of USD 80 per barrel [1][6] - Under different oil price scenarios (USD 60, 70, and 85 per barrel), the company's net profit for 2025 could range from RMB 100 billion to RMB 163 billion, with dividend yields of 5.3%, 6.8%, and 8.6%, respectively [6] Market Data - As of September 10, 2024, the company's closing price was HKD 19.16, with a total market capitalization of HKD 911.4 billion and total assets of RMB 1.0754 trillion [2] - The company's net asset value per share stood at RMB 15.1, with a dividend yield of 6.5% in 2023, expected to rise to 8.6% by 2026 [3][11]

Financial Performance - The company achieved operating revenue of RMB 226.77 billion, an increase of 18% compared to RMB 192.06 billion in the same period last year[10]. - Net profit attributable to shareholders reached RMB 79.73 billion, reflecting a 25% increase from RMB 63.76 billion year-on-year[10]. - The net cash flow from operating activities was RMB 79.20 billion, up 27% from RMB 62.32 billion in the previous year[10]. - Oil and gas sales revenue amounted to RMB 185.11 billion, representing a 22% year-on-year increase[14]. - The company's operating revenue for the first half of 2024 was RMB 226,770 million, an increase of 18.1% compared to RMB 192,064 million in the same period last year, driven by higher oil and gas sales and rising international oil prices[79]. - The company reported a profit of RMB 63,761 million for the period, compared to a profit of RMB 63,748 million in the previous year, indicating a slight increase[99]. - The company's profit for the six months ended June 30, 2024, was RMB 79,731 million, compared to RMB 63,761 million for the same period in 2023, reflecting an increase of 24.9%[119]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.74 per share (tax included) for 2024, based on the authorization from the 2023 annual general meeting[3]. - The company plans to distribute an interim dividend of HKD 0.74 per share, the highest in the company's history[13]. - The interim dividend declared is HKD 0.74 per share, totaling approximately HKD 35,187 million (RMB 32,139 million), an increase from HKD 0.59 per share in the previous period[120]. Exploration and Production - The company operates as China's largest offshore oil and gas producer and one of the largest independent exploration and production companies globally, with assets distributed across Asia, Africa, North America, South America, Oceania, and Europe[8]. - The company focuses on exploration, development, production, and sales of crude oil and natural gas, primarily in the Bohai Sea, western and eastern South China Sea, and East China Sea[8]. - The company's net production reached 362.6 million barrels of oil equivalent, a 9.3% increase compared to the same period last year[12]. - The company made significant discoveries in offshore oil fields, including the Bluefin discovery in Guyana and new oil fields in Bohai Sea[12]. - The company completed 174 exploration wells and collected 4,755 square kilometers of 3D seismic data in the first half of the year[16]. - The company achieved a natural gas flow rate exceeding 10 million cubic meters per day at the Lingshui 36-1 discovery, marking a significant breakthrough in ultra-deep water exploration[15]. - The company made a new discovery of 100 million tons at the Bluefin-1 well in the Guyana Stabroek block, further expanding the resource scale[15]. - The company successfully implemented China's first ultra-deep large displacement well at the Enping 21-4 oil field, setting records for the deepest offshore drilling and horizontal length[20]. - The company is actively pursuing green low-carbon development, focusing on offshore wind power and integrating new energy with oil and gas exploration[78]. Financial Position and Assets - The company's total assets as of June 30, 2024, were RMB 1,075,404 million, a 6.9% increase from RMB 1,005,598 million at the end of 2023[87]. - Current assets reached RMB 297,170 million, up 18.7% from RMB 250,275 million at the end of 2023, mainly due to an increase in cash and cash equivalents[87]. - The company's depreciation, depletion, and amortization amounted to RMB 37,555 million, an increase of 11.3% compared to RMB 33,738 million in the same period last year, primarily due to new oil field production and increased output[83]. - The company's total equity attributable to shareholders reached RMB 719,198 million, up from RMB 666,586 million at the end of 2023, marking a growth of 7.9%[99]. Environmental and Social Responsibility - The company generated a total of 28.58 million kWh of electricity in the first half of the year, resulting in a CO2 reduction of 16,600 tons[21]. - The company expanded its green electricity usage by consuming over 400 million kWh, leading to a reduction of nearly 300,000 tons of carbon emissions[21]. - The Ningbo terminal photovoltaic project achieved an annual power supply of 1.4 million kWh, with the onshore terminal photovoltaic coverage rate increasing to 82%[22]. - The company completed the world's first 5 MW offshore high-temperature flue gas waste heat power generation device, expected to save approximately 300 million cubic meters of natural gas and reduce CO2 emissions by about 800,000 tons over 20 years[22]. - The company invested over RMB 60 million in 24 assistance projects in various regions, focusing on industry, talent, culture, ecology, and infrastructure[23]. - The company reported a total of 19.96 tons of COD, 0.64 tons of ammonia nitrogen, and 6.07 tons of SO2 emissions, all within the approved limits for the first half of 2024[25]. - The company invested approximately RMB 348 million in environmental management and pollution control facilities in the first half of 2024[26]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[29]. Risk Management - The company has established a comprehensive risk management and internal control system to mitigate potential losses from risks encountered in achieving operational goals[30]. - The company faces risks from macroeconomic changes, including geopolitical tensions and trade disputes, which could negatively impact oil and gas supply and downstream demand[31]. - The company is subject to high customer concentration risk, where a significant reduction in purchases from major customers could adversely affect performance[41]. - The company is also exposed to high supplier concentration risk, which could disrupt operations if key suppliers fail to provide services[42]. - The company anticipates increased carbon emissions with production growth, facing potential costs and reputational damage if unable to meet national emission reduction standards[34]. - The company is at risk from fluctuating oil and gas prices, which can significantly impact business, cash flow, and earnings[35]. - The company may face challenges in achieving expected returns from acquisitions and divestitures due to various factors affecting asset acquisition success[39]. - The company recognizes the increasing competition in the energy sector, which may negatively impact its business and financial performance[36]. - The company is aware of the potential for HSSE risks that could lead to significant operational disruptions and reputational damage[37]. - The company faces risks related to undeveloped reserves, which could negatively impact performance if not developed timely and effectively[43]. - The company emphasizes the importance of technology and innovation to enhance competitiveness and operational capabilities, with insufficient core technology reserves potentially affecting production and cost control targets[44]. - Cybersecurity threats and IT infrastructure failures could lead to business interruptions, data loss, and increased costs, impacting the company's reputation[45]. - The company is exposed to foreign exchange risks due to revenue being primarily in RMB and USD, which could affect cash flow and capital expenditures[47]. - Legal risks arise from potential violations of anti-corruption, anti-money laundering, and corporate governance laws, which could harm the company's reputation and operational capabilities[50]. - The company is subject to various data privacy laws across jurisdictions, potentially leading to significant compliance costs[51]. - Economic sanctions from the U.S. could impact the company's operations and partnerships, affecting investor perception and business opportunities[52]. - The company is committed to enhancing its risk management and internal control systems to address significant risks through a comprehensive risk management mechanism[53]. Corporate Governance - The financial report has not been audited, and the company ensures the accuracy and completeness of the financial data presented[3]. - The company’s financial report is prepared according to both Chinese accounting standards and international/Hong Kong financial reporting standards[3]. - The company’s CEO and CFO have confirmed the authenticity and accuracy of the financial report[3]. - The company complied with all code provisions of the Corporate Governance Code during the six months ending June 30, 2024[65]. - The company’s board confirmed compliance with the ethical standards required by the Corporate Governance Code during the reporting period[66]. - The audit committee reviewed the interim results for the six months ending June 30, 2024, which were unaudited[61]. Subsidiaries and Joint Ventures - The company has a 100% ownership in its directly held subsidiary, CNOOC (China) Limited, which is engaged in offshore oil and gas exploration and production in China[102]. - The company has a 50% stake in BC Energy Investments Corp., registered in the British Virgin Islands, with a total issued capital of USD 102,325,582[106]. - The company’s subsidiaries are engaged in oil and gas exploration, development, and production activities across various countries, including Nigeria, Canada, the UK, the USA, and Brazil[104]. - The company’s financial performance is significantly influenced by its subsidiaries and joint ventures, which are critical to its asset base and overall results[107]. Capital Expenditures and Investments - Capital expenditures totaled RMB 63,125 million, an increase of 11.7% from RMB 56,514 million in the same period last year, ensuring sufficient support for resource increase and production[90]. - The company and its subsidiaries invested approximately RMB 62,811 million in property, plant, and equipment, up from RMB 57,136 million in the same period last year[121]. - The total amount committed for planned projects is RMB 32,099.09 million, with RMB 28,679.05 million already utilized as of June 30, 2024[94]. - The company has capital commitments to CNOOC and/or its affiliates amounting to approximately RMB 8,142 million as of June 30, 2024, down from RMB 14,382 million as of December 31, 2023[149]. Market and Customer Insights - 62% of the sales revenue for the six months ended June 30, 2023, came from customers in China, while no other individual region contributed more than 10%[113]. - The company’s sales revenue from major customer Sinopec accounted for 8% of total oil and gas sales for the six months ended June 30, 2024, down from 12% in the same period of 2023[142].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 26.43, indicating a potential upside of 38.5% from the current price of HKD 19.08 [2]. Core Insights - The company achieved a record net profit of HKD 797 billion in the first half of the year, representing a 25% year-on-year increase. Revenue for the same period was HKD 2268 billion, up 18% year-on-year [1]. - The total oil and gas production reached 362.6 million barrels of oil equivalent, a 9.3% increase year-on-year, with oil prices averaging USD 80.32 per barrel, up 9.2% year-on-year [1]. - The company continues to focus on increasing reserves and production, aiming for a reserve replacement ratio of no less than 130% and a production target of 700-720 million barrels of oil equivalent for 2024 [1]. Financial Performance - The company reported a significant increase in revenue from oil liquid products, which reached HKD 1613 billion, a 24% increase year-on-year, while natural gas product revenue was HKD 239 billion, up 9.7% year-on-year [1]. - The average cost per barrel of oil equivalent decreased to USD 27.75, a 1.5% decline year-on-year, with operational costs down by 4.8% due to increased production and currency fluctuations [1]. - The interim dividend for 2024 was set at HKD 0.74 per share, a historical high for the same period, with a payout ratio of 40.3%, reflecting a 25.4% increase year-on-year [1]. Future Projections - Revenue projections for 2024, 2025, and 2026 are estimated at HKD 451.4 billion, HKD 471.0 billion, and HKD 481.7 billion respectively, with net profits expected to be HKD 145.2 billion, HKD 151.2 billion, and HKD 155.4 billion [2][4]. - The report anticipates an 8x PE valuation for 2024, supporting the target price of HKD 26.43 [2].

研究报告 Research Report 8 Sep 2024 中国海洋石油 China National Offshore Oil Corporation (883 HK) 上半年净利润同比增长 25% [Table_yemei 观点聚焦 1] Investment Focus | --- | --- | |----------------------------------------------------------------|---------------------------| | 1H24 net income up 25% y/y [Table_Info] 首次覆盖优于大市 | Initiate with OUTPERFORM | | 评级 | 优于大市 OUTPERFORM | | 现价 | HK$19.84 | | 目标价 | HK$24.19 | | HTI ESG | 5.0-5.0-5.0 | | E-S-G: 0-5, (Please refer to the Appendix for ESG comments) | | | 市值 | HK$966.93bn / US$124. ...

Financial Performance - Oil and gas net production reached 362.6 million barrels of oil equivalent, an increase of 9.3% year-on-year[2] - Oil and gas sales revenue amounted to RMB 185.11 billion, representing a 22.0% increase compared to the same period last year[2] - Net profit attributable to shareholders was RMB 79.73 billion, a growth of 25.0% year-on-year[2] - Basic and diluted earnings per share were both RMB 1.68, reflecting a 25.0% increase[2] - The company achieved a historical high in operating profit of RMB 105.54 billion, up from RMB 84.27 billion in the previous year[7] - For the six months ended June 30, 2024, the total comprehensive income amounted to RMB 81,213 million, an increase of 14.9% compared to RMB 71,146 million for the same period in 2023[8] - The basic and diluted earnings per share for the period were RMB 1.68, up from RMB 1.34, representing a growth of 25.4% year-over-year[8] - The company reported a profit of RMB 79,731 million for the six months ended June 30, 2024, compared to RMB 63,761 million in 2023, indicating an increase of 24.9%[19] - Total revenue for the six months ended June 30, 2024, was RMB 226,770 million, up from RMB 192,064 million in 2023, marking a growth of 18.0%[15] Dividends - The interim dividend declared was HKD 0.74 per share, an increase of 25.4% compared to the previous year[2] - The company declared an interim dividend of HKD 0.74 per share, an increase from HKD 0.59 per share in the previous year, totaling approximately RMB 32,139 million[20] - The company will distribute an interim dividend of HKD 0.74 per share (tax included) for the 2024 interim period[34] - A 10% corporate income tax will be withheld for non-resident corporate shareholders receiving the interim dividend[35] - The interim dividend will be paid on or around October 18, 2024, to shareholders registered on the company's register as of September 20, 2024[34] - Shareholders must submit relevant documentation by September 13, 2024, to avoid the 10% withholding tax if eligible[35] - The company will not withhold individual income tax for natural person shareholders as of September 20, 2024[35] Assets and Liabilities - The company's non-current assets totaled RMB 778,234 million as of June 30, 2024, compared to RMB 755,323 million at the end of 2023, reflecting an increase of 3.0%[9] - Current assets increased to RMB 297,170 million from RMB 250,275 million, marking a growth of 18.7%[9] - Cash and cash equivalents rose to RMB 142,960 million, up from RMB 133,439 million, indicating an increase of 7.4%[9] - The company's net assets reached RMB 720,903 million, a rise of 7.9% from RMB 667,876 million at the end of 2023[9] - The total liabilities decreased from RMB 213,783 million to RMB 188,376 million, a reduction of 11.9%[9] - The company’s total assets as of June 30, 2024, were RMB 1,075,404 million, an increase from RMB 1,005,598 million at the end of 2023[15] - The company’s total liabilities as of June 30, 2024, were RMB (354,501) million, compared to RMB (337,722) million at the end of 2023[15] Operational Highlights - Significant discoveries included the Bluefin oil field in Guyana and the Lingshui 36-1 gas field in the South China Sea[3] - The average cost per barrel of oil equivalent was maintained at USD 27.75, ensuring a competitive cost advantage[4] - The company is focused on enhancing production efficiency and reducing costs while advancing its transition to renewable energy[5] - The company plans to continue its strategic initiatives to achieve new milestones in production and operational efficiency in the second half of the year[5] - 62% of the company's sales revenue for the six months ended June 30, 2024, came from customers in China, with no other individual region contributing more than 10%[16] Governance and Compliance - The company’s board has confirmed compliance with the corporate governance code during the six months ending June 30, 2024[30] - The board consists of executive, non-executive, and independent non-executive directors, ensuring diverse governance[36] - The company emphasizes that actual results may differ from forward-looking statements due to various uncertainties, including macroeconomic factors and industry competition[37] Shareholder Actions - The company repurchased a total of 16,366,000 shares listed on the Hong Kong Stock Exchange in July 2024, at a total cost of HKD 331 million, equivalent to approximately RMB 302 million[24] - There were no repurchases, sales, or redemptions of listed securities by the company during the six months ending June 30, 2024[29] - The company will close its Hong Kong share register from September 16 to September 20, 2024, for dividend eligibility[34] Provisions and Receivables - The company recognized a provision for abandonment discounting of approximately RMB 1,614 million for the six months ended June 30, 2024, compared to RMB 1,428 million in 2023[17] - Accounts receivable as of June 30, 2024, totaled RMB 42,742 million, with a provision for bad debts of RMB 96 million, representing a provision ratio of 0.22%[21] - The company’s accounts receivable aging analysis shows that 100% of receivables over three years are fully provided for bad debts[21] - Accounts payable to suppliers and partners as of June 30, 2024, amounted to RMB 66,905 million, an increase from RMB 59,017 million as of December 31, 2023[22] - The company’s total accounts payable and accruals as of June 30, 2024, were RMB 69,198 million, compared to RMB 61,382 million as of December 31, 2023[22]

Financial Performance - The company's operating revenue for Q1 2024 was RMB 111,468 million, representing a 14.1% increase compared to the same period last year[2]. - Net profit attributable to shareholders of the parent company reached RMB 39,719 million, up 23.7% year-on-year[2]. - Total revenue for Q1 2024 reached RMB 111,468 million, a 14% increase from RMB 97,711 million in Q1 2023[15]. - Net profit for Q1 2024 was RMB 39,726 million, up 24% from RMB 32,109 million in Q1 2023[16]. - Operating profit for Q1 2024 was RMB 52,597 million, representing a 21% increase compared to RMB 43,347 million in Q1 2023[15]. - The company reported a total comprehensive income of RMB 39,877 million for Q1 2024, compared to RMB 28,549 million in Q1 2023[17]. Cash Flow - The net cash flow from operating activities was RMB 59,978 million, reflecting a 15.4% increase from the previous year[2]. - In Q1 2024, the cash inflow from operating activities was RMB 113,816 million, an increase of 9.1% compared to RMB 103,925 million in Q1 2023[18]. - The net cash flow from operating activities reached RMB 59,978 million, up 15.5% from RMB 51,968 million in the same period last year[18]. - Cash inflow from investment activities totaled RMB 15,283 million, down 38.1% from RMB 24,687 million in Q1 2023[18]. - The net cash flow from investment activities was negative at RMB -33,884 million, an improvement from RMB -42,935 million in Q1 2023[18]. - Cash inflow from financing activities was RMB 1,352 million, significantly higher than RMB 75 million in Q1 2023[19]. - The net cash flow from financing activities was negative at RMB -1,156 million, slightly improved from RMB -1,735 million in the previous year[19]. - The total cash and cash equivalents at the end of Q1 2024 amounted to RMB 158,407 million, compared to RMB 92,600 million at the end of Q1 2023, reflecting a 70.9% increase[19]. - The company received RMB 1,331 million from borrowings in Q1 2024, a substantial increase from RMB 75 million in Q1 2023[19]. Production and Sales - Oil and gas sales revenue was RMB 89,977 million, marking a 21.3% increase from RMB 74,196 million in the same quarter last year[5]. - In Q1 2024, the company achieved a total net production of 180.1 million barrels of oil equivalent, a year-on-year increase of 9.9%[10]. - The company's domestic net production was 123.2 million barrels of oil equivalent, up 6.9% year-on-year, primarily due to new project contributions[10]. - The overseas net production reached 56.9 million barrels of oil equivalent, a year-on-year increase of 16.9% driven by production increases in Guyana and Canada[10]. - The average realized price for oil liquids was USD 78.75 per barrel, a 6.2% increase from USD 74.17 per barrel in Q1 2023[5]. - The average realized oil price in Q1 2024 was $78.75 per barrel, an increase of 6.2% compared to the previous year[10]. - The average realized gas price in Q1 2024 was $7.69 per thousand cubic feet, a decrease of 7.7% year-on-year[10]. - The company’s main cost per barrel of oil was $27.59, a decrease of 2.2% year-on-year[10]. Capital Expenditures and Assets - Capital expenditures totaled RMB 29,014 million, which is a 17.3% increase compared to RMB 24,736 million in Q1 2023[5]. - Capital expenditures for Q1 2024 amounted to approximately RMB 29.01 billion, a year-on-year increase of 17.3%[10]. - The total assets at the end of the reporting period were RMB 1,005,598 million, showing a 4.9% increase from the end of the previous year[2]. - Total assets as of March 31, 2024, amounted to RMB 1,055,179 million, an increase from RMB 1,005,598 million as of December 31, 2023[14]. - Current assets increased to RMB 288,758 million as of March 31, 2024, compared to RMB 250,275 million at the end of 2023, reflecting a growth of 15%[14]. - Total liabilities rose to RMB 347,100 million as of March 31, 2024, compared to RMB 337,722 million at the end of 2023[14]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 151,765[6]. - Earnings per share for Q1 2024 was RMB 0.84, an increase from RMB 0.68 in Q1 2023[17]. Other Financial Metrics - Non-recurring gains and losses totaled RMB 244 million for the quarter[3]. - The weighted average return on equity was 5.79%, an increase of 0.54 percentage points compared to the previous year[2]. - The company made 2 new discoveries and successfully evaluated 4 oil and gas structures in Q1 2024[10]. - The company’s inventory decreased slightly to RMB 6,267 million as of March 31, 2024, from RMB 6,451 million at the end of 2023[14]. - The cash outflow for purchasing fixed assets and other long-term assets was RMB -28,520 million, compared to RMB -24,095 million in the same quarter last year[18]. - The impact of exchange rate changes on cash and cash equivalents was RMB 30 million, a recovery from a negative impact of RMB -331 million in Q1 2023[19].

Financial Performance - CNOOC Limited reported a net confirmed reserve of approximately 6.78 billion barrels of oil equivalent as of December 31, 2023[5]. - Total revenue for the year 2023 was $416.609 million, a slight decrease from $422.230 million in 2022, representing a decline of approximately 1.4%[9]. - Total expenses increased to $248.840 million in 2023 from $228.905 million in 2022, marking an increase of about 8.7%[9]. - Net profit for 2023 was $124.090 million, down from $141.677 million in 2022, reflecting a decrease of approximately 12.5%[9]. - The company's total assets reached $1,005.598 million in 2023, an increase from $929.031 million in 2022, representing a growth of about 8.2%[10]. - Current assets amounted to $250.275 million in 2023, compared to $264.679 million in 2022, indicating a decrease of approximately 5.4%[10]. - Shareholders' equity increased to $667.876 million in 2023 from $598.383 million in 2022, showing a growth of about 11.6%[10]. - The company reported a pre-tax profit of $172.974 million for 2023, down from $194.770 million in 2022, a decrease of approximately 11.1%[9]. - Investment income for 2023 was $3.084 million, compared to $2.058 million in 2022, reflecting an increase of approximately 50%[9]. - The company achieved a revenue of RMB 416.6 billion and a net profit attributable to shareholders of RMB 123.8 billion, maintaining strong profitability despite falling oil prices[15]. Production and Reserves - The average daily net production for the year reached 1,857,619 barrels of oil equivalent[5]. - The total net production of oil equivalent reached 1,857,619 barrels per day in 2023, an increase from 1,709,175 barrels per day in 2022, reflecting a growth of about 8.7%[11]. - The company achieved a net production of 678 million barrels of oil equivalent in 2023, marking a historical high for five consecutive years[14]. - The net proven oil reserves reached 2,667.3 million barrels in 2023, an increase from 2,280.4 million barrels in 2022, representing a growth of approximately 17%[12]. - The net proven natural gas reserves increased to 8,180.2 billion cubic feet in 2023, up from 7,786.2 billion cubic feet in 2022, marking a growth of about 5%[12]. - The total net proven reserves (in million barrels of oil equivalent) reached 6,784.2 million barrels in 2023, compared to 6,238.6 million barrels in 2022, reflecting an increase of approximately 9%[12]. - The reserve replacement ratio was reported at 182% in 2023, indicating strong performance in replenishing reserves[13]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.66 per share, in addition to an interim dividend of HKD 0.59 per share, totaling HKD 1.25 per share for 2023[2]. - The company maintains a dividend payout policy with a minimum payout ratio of 40% from 2022 to 2024, with an absolute dividend value not less than HKD 0.70 per share (tax included) regardless of operational performance[172]. - The dividend distribution policy was approved at a special shareholders' meeting on October 26, 2021, ensuring shareholder returns based on future earnings, capital requirements, and financial conditions[172]. Operational Focus and Strategy - CNOOC Limited is the largest offshore oil and gas producer in China and one of the largest independent oil and gas exploration and production companies globally[5]. - The company emphasizes the importance of macroeconomic factors and oil price volatility in its future performance outlook[3]. - The company is committed to low-carbon development and technological advancements in its operations[4]. - The company plans to accelerate the construction of a world-class energy company and aims for steady growth in reserves and production in 2024[15]. - The company has made significant progress in integrating exploration and development, with rapid production from new discoveries such as Xijiang 24-2[25]. Environmental and Social Responsibility - The company is committed to sustainable development by reducing the environmental impact of oil and gas exploration and development activities and promoting the development of new energy and green technologies[110]. - The company has implemented a comprehensive environmental management system focusing on pollution control and ecological protection during oil and gas extraction[199]. - The company is actively promoting energy conservation and carbon reduction initiatives in line with national "carbon peak and carbon neutrality" goals[199]. - The company has developed a "14th Five-Year" energy-saving and carbon reduction action plan to enhance efficiency and reduce emissions[199]. - The company aims to achieve "increased production without increased pollution" through targeted environmental protection measures[199]. Governance and Risk Management - The company has established a comprehensive risk management and internal control system, ensuring effective compliance and risk mitigation strategies[82]. - The board of directors receives biannual reports on risk management and internal control, ensuring all significant risks are monitored and addressed[84]. - The company integrates Environmental, Social, and Governance (ESG) risk management into its regular operations, assessing at least six categories of ESG risks, including climate change and data privacy[107]. - The company has received multiple awards for its high standards of corporate governance, including the "Best Listed Company" award and the "Gold Award" for ESG[108]. - The company emphasizes the importance of ethical conduct and compliance policies in its governance framework[150]. Market Expansion and Future Outlook - The company is actively pursuing mergers and acquisitions to strengthen its market position and expand its service offerings[181]. - Future outlook includes a commitment to sustainable development and innovation in energy solutions[180]. - The company is considering strategic acquisitions to enhance its market position, with a budget of $1 billion for potential deals[184]. - The company plans to launch multiple key new projects in China and overseas in the next three years to support further production growth[29].

中国海洋石油（883） 更新报告 买入 2024年3月28 日 桶油成本优势明显，资本支出预算上调 许尚青  业绩符合预期：公司 2023 年全年实现营业收入人民币 4166.09 亿 +852-25321539 元，同比下降 1.33%；实现归母净利润 1238.43 亿元，同比下降 tim.xu@firstshanghai.com.hk 12.60%。扣非净利润 1251.88 亿元，同比下降 10.74%。Q4 单季度 实现营业收入 1097.92 亿元，同比下降 1.16%，环比下降 4.32%。 陈晓霞 实现归母净利润 261.98 亿元，同比下降 20.45%，环比下降 + 852-25321956 22.68%。实现扣非净利润294.83亿元，同比下降10.57%，环比下 降 11.68%。业绩同比下降主要由于国际油价下降，价差缩窄影响 xx.chen@firstshanghai.com.hk 营收。派发 2023 年末期股息 0.66 港元/股（含税），全年股息 1.25港元/股（含税），股息支付率达43.6%。 主要数据  增储上产成绩明显：公司 2023 年油气净产量为 678 百万桶 ...

Financial Performance - CNOOC Limited achieved a total revenue of RMB 416.609 billion in 2023, a slight decrease from RMB 422.230 billion in 2022[3]. - The net profit attributable to shareholders for 2023 was RMB 124.090 billion, down from RMB 141.677 billion in 2022, reflecting a decrease of approximately 12.5%[3]. - The company’s operating profit for 2023 was RMB 167.769 billion, down from RMB 193.325 billion in 2022[3]. - CNOOC Limited's total comprehensive income for 2023 was RMB 127.125 billion, compared to RMB 161.106 billion in 2022[4]. - Total revenue for 2023 was RMB 334,050 million, a decrease from RMB 364,574 million in 2022, reflecting a decline of approximately 8.3%[10]. - Oil and gas sales revenue for 2023 was RMB 327,867 million, down from RMB 352,956 million in 2022, representing a decrease of about 7.1%[10]. - The exploration and production segment reported a profit of RMB 124,090 million in 2023, down from RMB 141,677 million in 2022, reflecting a decline of 12.5%[12]. - The company's operating revenue for 2023 was RMB 416.609 billion, down 1.3% from RMB 422.230 billion in 2022, primarily due to the impact of declining international oil prices[38]. - The basic and diluted earnings per share for 2023 are RMB 2.60, down from RMB 3.03 in 2022, representing a decline of approximately 14.2%[19]. Production and Exploration - The company reported an oil and gas production of 678 million barrels of oil equivalent, marking a historical high for five consecutive years[2]. - The company made nine new discoveries in oil and gas exploration during the year, achieving the best net proven reserves in history[2]. - The company maintained a net proven reserve of approximately 6.78 billion barrels of oil equivalent, with a reserve replacement ratio of 180% in 2023[30]. - The net production for 2023 reached 67.8 million barrels of oil equivalent, representing an 8.7% year-on-year increase[30]. - The company plans to increase the proportion of natural gas in its total production by 2025, supported by major gas fields in the South China Sea and Bohai Sea[28]. Costs and Expenses - The average cost per barrel of oil was USD 28.83, reinforcing the company's cost competitiveness[2]. - Operating expenses increased to RMB (34,802) million in 2023 from RMB (31,566) million in 2022, representing an increase of 7.8%[12]. - The company's exploration expenses in 2023 were RMB 13,716 million, a decrease of 2.4% from RMB 14,058 million in 2022, reflecting a focus on maintaining exploration efforts[42]. - Depreciation, depletion, and amortization expenses increased to RMB 68,947 million in 2023 from RMB 62,852 million in 2022, a rise of 9.0%[16]. Dividends and Shareholder Returns - CNOOC Limited proposed a final dividend of HKD 0.66 per share for the year 2023[2]. - The interim dividend per share for 2023 is HKD 0.59, a decrease from HKD 0.70 in 2022, which is a reduction of about 15.7%[20]. - The board proposed a final dividend of HKD 0.66 per share for the fiscal year 2023, totaling HKD 31,394 million, which represents 44% of the net profit attributable to shareholders[61]. Assets and Liabilities - Non-current assets totaled RMB 755,323 million in 2023, compared to RMB 664,352 million in 2022, indicating a growth of about 13.7%[5]. - Current assets decreased to RMB 250,275 million in 2023 from RMB 264,679 million in 2022, a decline of approximately 5.4%[5]. - Total liabilities decreased from RMB 330,648 million in 2022 to RMB 337,722 million in 2023, reflecting a reduction of about 2.1%[6]. - Net assets increased to RMB 667,876 million in 2023, up from RMB 598,383 million in 2022, representing an increase of approximately 11.6%[6]. - The company's total liabilities as of December 31, 2023, were RMB 337,722 million, a 2.1% increase from RMB 330,648 million in 2022, indicating stable leverage[50]. Future Plans and Strategic Focus - CNOOC Limited plans to focus on increasing reserves and production while enhancing its digital transformation and green energy initiatives in 2024[2]. - The company aims for a production target of 700-720 million barrels of oil equivalent in 2024, with a reserve replacement ratio target of no less than 130%[59]. - The company plans to maintain capital expenditures between RMB 125 billion and RMB 135 billion for 2024[59]. Workforce and Governance - As of December 31, 2023, the company employed 19,511 staff in China and 2,275 overseas, indicating a diversified workforce[57]. - The company has established a market-oriented employment structure and a reasonable compensation framework[57]. - The company has complied with all provisions of the Corporate Governance Code during the fiscal year ending December 31, 2023[66]. Risks and Uncertainties - The company acknowledges that actual results may differ significantly from current expectations due to uncertainties such as oil and gas price fluctuations and macroeconomic factors[69]. - The company cannot guarantee that expected performance or developments will be achieved, nor can it assure that they will have the anticipated effects on the business[69].