CNOOC(600938) 光大证券·2024-06-11 00:31Investment Rating - The report maintains a "Buy" rating for the company [5][14]. Core Views - The company has significant domestic reserves, with 43% of its confirmed reserves located in the South China Sea, contributing to production and reserve growth [1]. - The company plans to increase capital expenditure in 2024, with a budget of 1250-1350 billion yuan, aimed at enhancing exploration and production capabilities [3]. - Recent breakthroughs in deepwater exploration, including the successful testing of the Ling Shui 36-1 gas field, are expected to further boost the company's production capacity [13]. Summary by Sections Company Overview - The company holds confirmed reserves of 1754.5 million barrels of oil equivalent in the South China Sea, accounting for 26% of its total confirmed reserves and 43% of domestic reserves [1]. - In Q1 2024, the net production from the South China Sea fields reached 56.9 million barrels of oil equivalent, representing 32% of the company's total net production [1]. Capital Expenditure and Projects - The capital expenditure for 2024 is projected to increase compared to 2023, with several key projects expected to commence production within the year, including the Bozhong 19-2 oil field and the Deep Sea No. 1 Phase II natural gas project [3]. - The company is focused on enhancing its exploration and development spending to support new production and reserve growth [3]. Financial Performance - The company forecasts net profits of 1457 billion yuan, 1582 billion yuan, and 1639 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 3.06, 3.33, and 3.45 yuan per share [14][15]. - The report highlights a strong return on equity (ROE) of 23.7% for 2022, with a projected decline to 15.9% by 2026 [15].