Ge Long Hui·2025-11-04 20:47Core Viewpoint - China National Offshore Oil Corporation (CNOOC) reported a decline in revenue and net profit for the first three quarters of 2025, with a slight recovery in Q3, driven by increased production and successful project launches [1][2]. Financial Performance - For the first three quarters of 2025, CNOOC achieved revenue of 312.5 billion yuan, a year-on-year decrease of 4.15%, and a net profit attributable to shareholders of 101.97 billion yuan, down 12.59% year-on-year [1]. - In Q3 2025, the company reported revenue of 104.9 billion yuan, with a year-on-year increase of 5.68% and a quarter-on-quarter increase of 4.11%. The net profit for Q3 was 32.44 billion yuan, reflecting a year-on-year decrease of 12.10% and a quarter-on-quarter decrease of 1.59% [1]. Sales and Production - In Q3 2025, CNOOC's oil and gas sales revenue was 83.74 billion yuan, down 3.0% year-on-year, with liquid petroleum sales revenue at 69.95 billion yuan, down 5.6%, while natural gas sales revenue increased by 13.0% to 13.78 billion yuan [1]. - The average realized price for liquid petroleum in Q3 was 66.62 USD per barrel, a decrease of 12.8% year-on-year, while the realized price for natural gas was 7.80 USD per thousand cubic feet, an increase of 0.6% year-on-year [1]. - CNOOC's total oil and gas production in Q3 was 193.7 million barrels of oil equivalent, up 7.9% year-on-year, with liquid petroleum production at 149.0 million barrels of oil equivalent, up 7.1%, and natural gas production at 261.3 billion cubic feet, up 11.0% [1]. Exploration and Project Development - In Q3 2025, CNOOC successfully evaluated four oil and gas structures, with significant results from the Kenli 10-6 structure and the Lingshui 17-2 integrated rolling reserve increase [2]. - Four projects were launched in Q3, including the Kenli 10-2 oilfield group development project, Dongfang 1-1 gas field 13-3 area development project, Guyana Yellowtail project, and Wenchang 16-2 oilfield development project, with peak daily production of 19,400, 5,500, 250,000, and 11,200 barrels of oil equivalent, respectively [2]. Cost Management and Shareholder Returns - CNOOC's main cost per barrel of oil equivalent was 27.35 USD, optimized by 0.79 USD per barrel compared to the first three quarters of 2024, enhancing the company's competitiveness [2]. - The company has committed to a dividend payout ratio of no less than 45% for the years 2025-2027, an increase of 5 percentage points compared to the previous three years, indicating potential for improved shareholder returns in the long term [2]. Investment Outlook - Based on current oil price trends and production growth, CNOOC is expected to achieve net profits attributable to shareholders of 138.2 billion yuan, 143.6 billion yuan, and 146.9 billion yuan for 2025-2027, with a corresponding price-to-earnings ratio of 9 [3]. - A relative valuation method suggests a target price of 36.24 yuan for 2026, based on a 12 times price-to-earnings ratio [3].