CNOOC(SH:600938) Dongxing Securities·2024-09-20 09:38Investment Rating - The report maintains a "Strong Buy" rating for China National Offshore Oil Corporation (CNOOC) [1][6][15] Core Views - CNOOC achieved record high net profit and production in the first half of 2024, with a net profit of RMB 797 billion, up 25% year-on-year, and total revenue of RMB 2,268 billion, up 18% year-on-year [1][2] - The company continues to focus on its core oil and gas business, enhancing reserves and production while improving cost efficiency, which is expected to drive high growth [2][6] - CNOOC's cash flow remains healthy, with operating cash flow increasing by 19% to RMB 1,185 billion in the first half of 2024 [2][6] Summary by Sections Financial Performance - In H1 2024, CNOOC's total revenue reached RMB 2,268 billion, a year-on-year increase of 18%, while net profit attributable to shareholders was RMB 797 billion, reflecting a 25% growth [1][2] - The average Brent crude oil price was USD 83.47 per barrel during this period, contributing to the revenue growth [1][2] Production and Sales - CNOOC's oil and gas net production reached 362.6 million barrels of oil equivalent in H1 2024, a 9.3% increase year-on-year [2][6] - The company reported a 22% increase in oil and gas sales revenue to RMB 1,851.12 billion [2] Capital Expenditure and Growth Strategy - CNOOC increased its capital expenditure to RMB 631 billion in H1 2024, up 11.7% year-on-year, to support its "increase reserves and production" strategy [2][6] - The company made six new discoveries in the Chinese sea area and is advancing exploration projects in Guyana [2][6] Dividend Policy - The board has proposed an interim dividend of HKD 0.74 per share, indicating a commitment to high shareholder returns with an annualized dividend yield exceeding 4% [6][9]