EBSCN·2024-03-21 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return of over 15% in the next 6-12 months [2][3]. Core Insights - The company is set to launch several significant new projects in 2024, including oil and gas development projects in China and Brazil, which are expected to enhance reserves and production [1]. - The company has increased its capital expenditure for exploration and development, with a budget of 1250-1350 billion yuan for 2024, reflecting a growth strategy aimed at boosting oil and gas output [22][35]. - The company achieved a record high in net proven reserves in 2023, reaching 6784 million barrels of oil equivalent, with a replacement rate of 180% [34]. - The company has a strong commitment to shareholder returns, proposing a total dividend of 1.25 HKD per share for 2023, maintaining a payout ratio of 43.6% [10][21]. Financial Performance - In 2023, the company reported total revenue of 4166 billion yuan, a slight decrease of 1.3% year-on-year, and a net profit of 1238 billion yuan, down 12.6% year-on-year [5][6]. - The company maintained a strong cash flow position, with operating cash flow of 2097 billion yuan, reflecting a 2.0% increase year-on-year [6]. - The average realized oil price in 2023 was 77.96 USD per barrel, a decrease of 19.3% compared to the previous year [31]. Production and Cost Efficiency - The company achieved a total oil and gas production of 678 million barrels of oil equivalent in 2023, marking an 8.7% increase year-on-year [31]. - The company has successfully reduced its main oil production cost to 28.83 USD per barrel of oil equivalent, a decrease of 5.1% year-on-year [8]. - The company has focused on enhancing drilling efficiency, achieving a 19% improvement in average drilling day efficiency from 2019 to 2023 [32]. Future Outlook - The company has set production targets of 700-720 million barrels of oil equivalent for 2024 and 780-800 million barrels for 2025, indicating a growth rate of 4.7% and 11.3% respectively [22][36]. - The report anticipates a decline in oil prices in 2024 due to a more relaxed supply-demand balance, but expects production growth to drive long-term performance [36].