CNOOC(600938) Tianfeng Securities·2024-10-29 05:00Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company's Q3 2024 net profit reached 36.9 billion yuan, representing a year-on-year increase of 9%, which aligns with market expectations [1]. - The net production for Q3 2024 was 179.6 million barrels of oil equivalent (MMBOE), up 7% year-on-year, primarily driven by the contribution from the Payara project in South America [2]. - The average oil price realization was 2.3 compared to Brent, indicating an improvement in pricing [4]. Financial Performance - Q3 2024 net profit was 36.9 billion yuan, with a breakdown showing production up 7% year-on-year, stable oil costs, and a 6.5% decrease in average realization price [1]. - The main cost per barrel of oil was $28.93, which is nearly flat year-on-year [3]. - The company forecasts net profits of 150.4 billion yuan, 166.4 billion yuan, and 171.5 billion yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (P/E) ratios of 8.7, 7.8, and 7.6 for A-shares [4][5]. Production and Projects - The production increase of 7% was supported by the successful implementation of remote control technology during typhoon seasons, minimizing production losses [2]. - The company has signed contracts for four offshore exploration blocks in Brazil, which are expected to provide a solid foundation for future production increases [2]. Market Position - The company has a total A-share market capitalization of approximately 81.9 billion yuan, with a circulating market value of about 77.8 billion yuan [6]. - The report indicates a projected dividend yield of 5.1% for A-shares and 8.1% for H-shares based on a dividend payout ratio of 44% [4].