CNOOC(600938) 申万宏源·2024-03-21 16:00Investment Rating - The report maintains a "Buy" rating for the company [23]. Core Views - The company's production increase offsets the impact of declining oil prices, ensuring sustainable profitability. In 2023, the company achieved a net oil and gas production of 680 million barrels of oil equivalent, an increase of 8.7% year-on-year, with crude oil production at 530 million barrels, up 8.1% year-on-year [2]. - The company has improved its cost structure, with a decrease in oil cost to $28.83 per barrel, down 5.1% year-on-year, which supports profitability [2]. - Operating cash flow reached a historical high of 209.7 billion yuan in 2023, reflecting the company's operational stability despite falling oil prices. The company plans to maintain a dividend of 1.25 HKD per share, with a payout ratio of 43.6% [5]. Financial Summary - In 2023, the company reported total revenue of 416.6 billion yuan, a slight decline of 1.3% year-on-year, and a net profit of 123.8 billion yuan, down 12.6% year-on-year. The fourth quarter saw a revenue of 109.8 billion yuan, a decrease of 4.32% quarter-on-quarter [14]. - The company expects oil and gas production to reach 700-720 million barrels of oil equivalent in 2024, a year-on-year increase of 3%-6% [2]. - The projected revenue for 2024 is 443.98 billion yuan, with a net profit forecast of 132.5 billion yuan, corresponding to a PE ratio of 10x [23].