Dongxing Securities·2025-09-04 10:42Investment Rating - The report maintains a "Strong Buy" rating for China National Offshore Oil Corporation (CNOOC) [4] Core Views - The report highlights that CNOOC has demonstrated resilience through increased reserves and production despite a significant drop in oil prices, with Brent crude averaging $70.94 per barrel, down 14.58% year-on-year [2][3] - CNOOC's oil production reached 296.1 million barrels, an increase of 4.48% year-on-year, while natural gas production rose by 11.97% to 516.2 million barrels [2] - The company has successfully managed costs, with the average cost per barrel of oil equivalent at $26.94, a decrease of 2.9% year-on-year [2] Financial Performance Summary - For the first half of 2025, CNOOC reported revenue of RMB 207.61 billion, a decline of 8% year-on-year, and a net profit of RMB 69.53 billion, down 12.8% [1] - Oil and gas sales revenue was approximately RMB 171.75 billion, reflecting a decrease of 7.2% year-on-year [2] - The company is projected to maintain stable net profit forecasts for 2025-2027, with estimates of RMB 1344.28 billion, RMB 1370.74 billion, and RMB 1407.40 billion respectively, corresponding to EPS of 2.83, 2.88, and 2.96 [9][10] Exploration and Development - CNOOC has intensified exploration efforts, achieving five new discoveries in Chinese waters and significant breakthroughs in metamorphic rock exploration in the South China Sea [3] - The company has signed oil contracts in Iraq and Kazakhstan, further solidifying its resource base for future development [9] Strategic Initiatives - CNOOC is focusing on green transformation initiatives, including offshore CCUS and gas recovery measures, alongside advancements in its offshore floating wind power projects [9]