Zhi Tong Cai Jing·2025-11-07 06:02Core Viewpoint - The report from First Shanghai recommends a "buy" rating for China National Offshore Oil Corporation (CNOOC), projecting revenues and net profits for 2025-2027, with a target price of HKD 25.98 based on an 8.5x PE valuation for 2026 [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of CNY 33.947 billion, a year-on-year increase of 0.81%, and a net profit attributable to shareholders of CNY 2.853 billion, up 6.11% year-on-year [1]. - In Q3 alone, the company reported revenue of CNY 11.350 billion, a decrease of 5.75% year-on-year, and a net profit of CNY 1.023 billion, down 4.51% year-on-year [1]. - The decline in oil prices, typhoon-related production cuts, and rising natural gas prices were the main factors affecting performance [1]. Production and Discoveries - The company achieved a record high net production of oil and gas for the first three quarters, totaling 578.3 million barrels of oil equivalent, an increase of 6.7% year-on-year [1]. - In the first three quarters, the average Brent crude oil price was USD 69.91 per barrel, down 14.6% year-on-year, while the realized gas price was USD 7.86 per thousand cubic feet, up 1.0% year-on-year [1]. - The company made five new discoveries and successfully evaluated 22 oil and gas structures, expanding its reserves significantly [2]. Dividend and Cash Flow - The company plans to maintain a dividend payout ratio of no less than 45% for the year 2025-2027, subject to shareholder approval [2]. - The company has healthy operating cash flow under the current oil price environment, with a current dividend yield of 6.7%, highlighting its strong dividend attributes [2].