Core Viewpoint - Morgan Stanley has raised the target price for CNOOC (00883) to HKD 23 and RMB 30 for A-shares, citing improved medium to long-term earnings per share and free cash flow outlook [1] Group 1: Target Price and Ratings - The H-share rating for CNOOC has been upgraded from "Underweight" to "Overweight," while the A-share rating remains "Overweight" [1] - The upgrade reflects an anticipated increase in oil prices by USD 5 per barrel and recent progress in optimizing natural gas sales by CNOOC [1] Group 2: Performance Comparison - CNOOC's A/H shares have underperformed compared to China Petroleum & Chemical Corporation (00857) A/H shares by 13-22% year-to-date [1] - The report suggests that OPEC's production increase signals demand recovery and healthy global inventory levels rather than chaos or price wars within OPEC [1] Group 3: Dividend Strategy - CNOOC's unexpected willingness to align its dividend yield with that of China Petroleum, which has successfully decoupled from oil prices, may help limit the downside risk for its stock price [1] - Even with potential oil price declines to USD 55 per barrel by Q1 2026, this strategy could provide some support for CNOOC's stock [1]

Core Viewpoint - Morgan Stanley has raised the target price for CNOOC (00883) to HKD 23 and RMB 30 for A-shares, primarily due to improved medium to long-term earnings per share and free cash flow outlook [1] Group 1: Target Price and Ratings - The H-share rating for CNOOC has been upgraded from "Underweight" to "Overweight," while the A-share rating remains "Overweight," reflecting a projected increase in oil prices by USD 5 per barrel [1] - CNOOC's A/H shares have underperformed compared to China Petroleum (00857) A/H shares by 13-22% year-to-date [1] Group 2: Market Signals and Dividend Strategy - The increase in OPEC production is viewed as a signal of demand recovery and healthy global inventory levels, rather than a sign of OPEC disarray or a price war [1] - CNOOC's unexpected willingness to align its dividend yield with that of China Petroleum, which has successfully decoupled from oil prices, may help limit its stock price downside, even if oil prices could drop to USD 55 per barrel by Q1 2026 [1]

8月28日，中国海洋石油有限公司宣布，该公司国内天然气日产量突破1亿立方米，再创新高。 中国海油坚持"稳油增气、向气倾斜"工作方针，推进海上天然气和陆上非常规天然气产量与产能建 设稳步提升，超额完成国内油气增储上产"七年行动计划"天然气地质储量指标。今年6月，"深海一 号"二期项目全面投产，"深海一号"超深水大气田高峰年产量从30亿立方米跃升至45亿立方米。来自深 水气田的天然气产量贡献超中国海油天然气产量的三成。今年7月，渤海油田天然气日产量超1200万立 方米，自投产以来总产量达520亿立方米。渤中19-6凝析气田产量同比增长100万立方米/天，低渗气藏 开发能力取得突破。陆上非常规天然气建设规模及协同化水平不断提升。 ...

Core Viewpoint - China National Offshore Oil Corporation (CNOOC) experienced a decline in stock price and trading volume on September 3, with significant net financing outflows, indicating a cautious market sentiment towards the company [1][2]. Financing Summary - On September 3, CNOOC had a financing buy-in amount of 99.48 million yuan and a financing repayment of 145 million yuan, resulting in a net financing outflow of 45.43 million yuan [1]. - The total financing and securities balance for CNOOC reached 1.797 billion yuan, with the financing balance accounting for 2.27% of the circulating market value, which is below the 50th percentile level over the past year, indicating a low financing position [1]. - CNOOC's securities lending on the same day included a repayment of 41,500 shares and a sale of 1,300 shares, with a total sale amount of 34,100 yuan, while the remaining securities lending balance was 53.90 million shares, exceeding the 90th percentile level over the past year, indicating a high lending position [1]. Company Overview - CNOOC, established on August 20, 1999, and listed on April 21, 2022, primarily engages in the exploration, production, and sales of crude oil and natural gas, with operations in various countries including China, Canada, the USA, the UK, Nigeria, and Brazil [2]. - The company's revenue composition is as follows: 84.57% from oil and gas sales, 13.11% from trading, and 2.32% from other businesses [2]. - As of June 30, 2025, CNOOC reported a total revenue of 207.61 billion yuan, a year-on-year decrease of 8.45%, and a net profit attributable to shareholders of 69.53 billion yuan, down 12.79% year-on-year [2]. Dividend and Shareholder Information - Since its A-share listing, CNOOC has distributed a total of 224.34 billion yuan in dividends, with 176.36 billion yuan distributed over the past three years [3]. - As of June 30, 2025, the number of CNOOC shareholders was 232,800, a decrease of 0.25% from the previous period, with an average of 12,936 circulating shares per person, an increase of 5.50% [2][3].

Core Viewpoint - China National Offshore Oil Corporation (CNOOC) has announced the commencement of the Wenchang 16-2 oilfield development project, which is expected to enhance its production capacity significantly [1] Group 1: Project Details - The Wenchang 16-2 oilfield is located in the western waters of the Pearl River Mouth Basin, with an average water depth of approximately 150 meters [1] - The project will utilize existing facilities from the Wenchang oilfield group and includes the construction of a new jacket platform that integrates oil and gas extraction, offshore drilling operations, and personnel living support [1] Group 2: Production Expectations - The project plans to develop 15 production wells and is expected to reach a peak production of approximately 11,200 barrels of oil equivalent per day by 2027 [1] - The oil produced from this project is characterized as light crude oil [1]

Group 1: Company Overview - China National Offshore Oil Corporation (CNOOC) is primarily engaged in the exploration, production, and sales of crude oil and natural gas, with operations in China, Canada, the USA, the UK, Nigeria, and Brazil [2] - The company's revenue composition includes 84.57% from oil and gas sales, 13.11% from trading, and 2.32% from other businesses [2] - As of June 30, 2025, CNOOC had 232,800 shareholders, a decrease of 0.25% from the previous period, with an average of 12,936 circulating shares per shareholder, an increase of 5.50% [2] Group 2: Financial Performance - For the first half of 2025, CNOOC reported operating revenue of 207.61 billion yuan, a year-on-year decrease of 8.45%, and a net profit attributable to shareholders of 69.53 billion yuan, down 12.79% year-on-year [2] - CNOOC has distributed a total of 224.33 billion yuan in dividends since its A-share listing, with 176.36 billion yuan distributed over the past three years [3] Group 3: Market Activity - On September 2, CNOOC's stock rose by 1.70%, with a trading volume of 2.641 billion yuan [1] - The financing buy-in amount for CNOOC on the same day was 241 million yuan, with a net financing buy of 13.48 million yuan, while the total financing balance reached 1.844 billion yuan [1] - CNOOC's margin trading balance accounted for 2.32% of its market capitalization, indicating a high level of financing activity [1]

Market Overview - The Shanghai Composite Index fell by 0.45% on September 2, with six industries experiencing gains, led by the banking and public utilities sectors, which rose by 1.95% and 0.99% respectively [1] - The oil and petrochemical industry saw a modest increase of 0.37% [1] - A total of 27 industries experienced net outflows of capital, with the electronics sector leading the outflow at 34.544 billion yuan, followed by the computer sector with a net outflow of 24.560 billion yuan [1] Capital Flow Analysis - The banking sector had the highest net inflow of capital, amounting to 3.417 billion yuan, contributing to its 1.95% increase [1] - The public utilities sector also saw a net inflow of 936 million yuan, with a daily increase of 0.99% [1] - The oil and petrochemical industry recorded a net inflow of 249 million yuan, with 14 out of 47 stocks in the sector rising [2] Individual Stock Performance in Oil and Petrochemical Sector - China National Petroleum Corporation (PetroChina) led the net inflow in the oil and petrochemical sector with 475 million yuan, followed by China National Offshore Oil Corporation (CNOOC) and Sinopec, with net inflows of 109 million yuan and 90 million yuan respectively [2] - Among the stocks with significant net outflows, Guanghui Energy, ST Xinchao, and Rongsheng Petrochemical had outflows of 68.911 million yuan, 46.946 million yuan, and 41.555 million yuan respectively [2][3]

Core Insights - China's offshore heavy oil thermal recovery has achieved a significant milestone, surpassing a cumulative production of 5 million tons, marking a key step in the global offshore heavy oil development sector [3][12][14] - The Luda 5-2 North Oilfield Phase II project has emerged as a leader in this field, showcasing strong development momentum since its production start in February, with over 2 million tons of heavy oil reserves activated and daily production exceeding 500 tons [3][6] Technological Innovations - The development of heavy oil is challenged by its high viscosity and density, making extraction difficult, especially in offshore environments where costs are high and space is limited [6][9] - China National Offshore Oil Corporation (CNOOC) has introduced an innovative "fewer wells, higher yield" thermal recovery model, which enhances single well output through high-temperature steam injection and the use of various gases and chemicals [8][9] Equipment Advancements - CNOOC has successfully developed high-end oil production trees and supporting systems suitable for offshore heavy oil thermal recovery, along with modular equipment specifically designed for this purpose, filling a gap in the domestic market [9][10] Resource Potential - China is one of the world's four major heavy oil producers, with proven heavy oil resources amounting to 3.5 billion tons, indicating substantial development potential [10][12] - Currently, less than 3% of the annual production from Bohai Oilfield, which exceeds 30 million tons, comes from unconventional heavy oil, highlighting the opportunity to convert dormant heavy oil reserves into actual production [10][12] Future Outlook - The offshore heavy oil thermal recovery production is expected to exceed 1 million tons for the first time in 2024, with projections for 2025 indicating a potential annual output of 2 million tons, reflecting the technology's vast potential and promising future [14][16] - Continuous advancements in technology and equipment are anticipated to accelerate the pace of offshore heavy oil thermal recovery capacity construction, contributing significantly to national energy security [16]

Group 1 - The oil and gas extraction sector increased by 0.15% compared to the previous trading day, with China National Offshore Oil Corporation (CNOOC) leading the gains [1] - The Shanghai Composite Index closed at 3858.13, down 0.45%, while the Shenzhen Component Index closed at 12553.84, down 2.14% [1] - The trading volume and turnover for key stocks in the oil and gas extraction sector were significant, with CNOOC closing at 26.38, up 1.70% with a turnover of 26.41 billion yuan [1] Group 2 - The net capital flow in the oil and gas extraction sector showed a net outflow of 4.87 million yuan from main funds, while retail funds experienced a net outflow of 24.31 million yuan [1] - CNOOC had a net inflow of 74.62 million yuan from main funds, but a net outflow of 84.68 million yuan from retail investors, indicating mixed investor sentiment [2] - Other companies like Blue Flame Holdings and ST Xinchao experienced significant net outflows from main funds, highlighting potential concerns among institutional investors [2]

Investment Rating - The report maintains a "Buy" investment rating for China National Offshore Oil Corporation (CNOOC) [1] Core Views - The decline in oil prices has negatively impacted revenue, but the company's resilience is highlighted through increased reserves and production [5] - CNOOC's oil and gas sales revenue decreased by 7.22% year-on-year due to falling oil prices, with the average price of crude oil dropping from $80.32 per barrel in the first half of 2024 to $69.15 per barrel in the first half of 2025 [5] - The company achieved a net production of 385 million barrels of oil equivalent in the first half of 2025, representing a 6.1% increase year-on-year, with natural gas production rising by 12.0% [5] - CNOOC's cash flow management has improved, with a net cash flow from operating activities of RMB 109.18 billion, despite a 7.9% decline due to reduced cash inflow from oil and gas sales [6][7] - The company is focusing on increasing reserves and production while accelerating its transition to renewable energy, achieving significant progress in clean production measures and expanding its overseas exploration [8] Summary by Sections Financial Performance - In the first half of 2025, CNOOC reported total revenue of RMB 207.61 billion, a decrease of 8.45% year-on-year, and a net profit attributable to shareholders of RMB 69.53 billion, down 12.79% [4] - The second quarter of 2025 saw a revenue of RMB 94.35 billion, a year-on-year decline of 15.35% [4] Cost Management - The company managed to stabilize its expenses, with a slight increase in sales and management expenses by 2.1% year-on-year, while overall expenses showed a decrease [6] Growth and Innovation - CNOOC is enhancing its resource base through technological innovation and has made new discoveries in domestic waters, while also expanding its international footprint [8] - The company is actively pursuing green transformation initiatives, including offshore carbon capture and utilization (CCUS) and floating wind power projects [8] Profit Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is RMB 137.1 billion, RMB 139.3 billion, and RMB 146.3 billion respectively, with corresponding price-to-earnings ratios of 8.9, 8.8, and 8.3 times [9]