Investment Rating - The report maintains an "Overweight" rating for the oil and gas sector, specifically for the "Big Three" oil companies and oil service sector [5]. Core Viewpoints - The long-term outlook for oil prices remains optimistic due to improving supply-demand dynamics and ongoing geopolitical risks that provide price support [1]. - The "Big Three" oil companies in China are expected to increase their oil and gas equivalent production by 1.6%, 1.3%, and 5.9% respectively by 2025, with significant growth in natural gas production [2]. - The downstream sector is accelerating its transformation towards new materials and clean energy, with major companies investing in high-value products and energy supply networks [3]. - The report suggests focusing on undervalued, high-dividend, and well-performing companies in the oil and gas sector, as well as those benefiting from domestic substitution trends in materials [4]. Summary by Sections Oil and Gas Sector - Oil prices are supported by geopolitical tensions and a slowdown in U.S. shale oil production, with IEA projecting increases in U.S. crude supply of 440,000 barrels per day in 2025 and 180,000 barrels per day in 2026 [1]. - The "Big Three" oil companies are responding to national calls for increased reserves and production, with specific growth targets set for oil and gas equivalent production [2]. Downstream Transformation - Companies are enhancing their refining and sales operations, transitioning to comprehensive energy suppliers, and investing in electric vehicle infrastructure [3]. Investment Recommendations - The report recommends focusing on the "Big Three" oil companies, oil service firms, and companies in the materials sector that are poised to benefit from domestic substitution trends [4].

Investment Rating - The report maintains an "Overweight" rating for the oil and petrochemical industry [5] Core Viewpoints - The oil price is expected to rebound due to improved supply-demand outlook and easing trade tensions, with IEA and EIA raising global oil demand forecasts for 2025 [1][10] - The "Three Major Oil Companies" are significantly increasing capital expenditures to enhance oil and gas production, ensuring national energy security [2][18] - The transition to renewable energy is being actively pursued by the "Three Major Oil Companies," highlighting their long-term investment value [3][18] Summary by Sections Oil Price Outlook - Supply-demand expectations have improved, leading to a rebound in oil prices. As of May 23, 2025, Brent and WTI crude oil prices were reported at $65.03 and $61.76 per barrel, respectively [9][10] - IEA has raised its 2025 global oil demand forecast by 100,000 barrels per day to 74 million barrels per day, while EIA expects a growth of 970,000 barrels per day, an increase of 170,000 barrels from the previous month [10][14] Capital Expenditure and Production Growth - The "Three Major Oil Companies" are responding to the national call for increased reserves and production, with a combined capital expenditure CAGR of 6.6% from 2018 to 2024. For 2025, their planned capital expenditures are CNY 210 billion for China National Petroleum Corporation, CNY 76.7 billion for Sinopec, and CNY 130 billion for China National Offshore Oil Corporation [2][18] - Oil and gas equivalent production for 2024 is expected to grow by 2.2% for both China National Petroleum Corporation and Sinopec, and by 7.2% for China National Offshore Oil Corporation [2][18] Renewable Energy Transition - The "Three Major Oil Companies" are advancing their renewable energy initiatives. China National Petroleum Corporation aims for natural gas to account for 54.4% of its oil and gas equivalent production by 2024, while also expanding its renewable energy capacity [3][24] - Sinopec is leveraging its integrated advantages to accelerate the development of charging and hydrogen refueling stations, with plans to build at least 500 battery swap stations this year [3][28] - China National Offshore Oil Corporation is actively promoting CCUS projects, with the first offshore CCUS project launched in May 2025, expected to inject over 1 million tons of CO2 over the next decade [3][32]

Investment Rating - The report maintains an "Accumulate" rating for the oil and petrochemical industry [5] Core Viewpoints - The oil price is expected to rebound due to improved supply-demand outlook, with IEA and EIA raising global oil demand forecasts for 2025 [1][10] - The "Three Major Oil Companies" are significantly increasing capital expenditures to enhance oil and gas production, ensuring national energy security [2][18] - The transition to renewable energy is being accelerated by the "Three Major Oil Companies," highlighting their long-term investment value [3][18] Summary by Sections Oil Price Outlook - Supply-demand expectations have improved, leading to a rebound in oil prices. As of May 23, 2025, Brent and WTI crude oil prices were reported at $65.03 and $61.76 per barrel, respectively [9][10] - IEA has raised its 2025 global oil demand forecast by 10000 barrels per day to 740000 barrels per day, while EIA expects a growth of 970000 barrels per day, an increase of 170000 barrels from the previous month [10][14] Capital Expenditure and Production Growth - The "Three Major Oil Companies" are responding to the national call for increased reserves and production, with a combined capital expenditure CAGR of 6.6% from 2018 to 2024. For 2025, their planned capital expenditures are CNY 210 billion for China National Petroleum Corporation, CNY 76.7 billion for China Petroleum & Chemical Corporation, and CNY 130 billion for China National Offshore Oil Corporation [2][18] - Oil and gas equivalent production for 2024 is expected to grow by 2.2% for both China National Petroleum Corporation and China Petroleum & Chemical Corporation, and by 7.2% for China National Offshore Oil Corporation [2][18] Renewable Energy Transition - The "Three Major Oil Companies" are advancing their renewable energy initiatives. China National Petroleum Corporation aims for natural gas to account for 54.4% of its oil and gas equivalent production by 2024, with significant investments in wind and hydrogen energy [3][24] - China Petroleum & Chemical Corporation is expanding its charging and hydrogen refueling infrastructure, targeting the construction of at least 500 battery swap stations this year [3][28] - China National Offshore Oil Corporation is actively developing CCUS projects, with the first offshore CCUS project launched in May 2025, expected to inject over 1 million tons of CO2 over the next decade [3][32]

Core Viewpoint - The "Three Oil Giants" (China National Petroleum Corporation, China Petroleum & Chemical Corporation, China National Offshore Oil Corporation) are expected to steadily increase their oil and gas production in response to national calls for "increasing reserves and production" amid ongoing geopolitical uncertainties [2][3]. Group 1: Oil and Gas Production - In Q1 2025, the oil and gas equivalent production of the "Three Oil Giants" is projected to grow, with China National Petroleum Corporation, China Petroleum & Chemical Corporation, and China National Offshore Oil Corporation showing year-on-year increases of 0.7%, 1.7%, and 4.8% respectively [2]. - The upstream capital expenditure plans for 2025 are set at 210 billion, 76.7 billion, and 130 billion yuan for China National Petroleum Corporation, China Petroleum & Chemical Corporation, and China National Offshore Oil Corporation respectively, with expected production growth rates of 1.6%, 1.3%, and 5.9% [2]. Group 2: Transition to Renewable Energy - The "Three Oil Giants" are actively advancing their green and low-carbon transformation, with China National Petroleum Corporation aiming for natural gas to account for over 50% of its total production by 2024 [3]. - China National Petroleum Corporation has established over 10 million kilowatts of wind and solar power generation capacity and aims for a hydrogen production capacity of 8,100 tons per year, reflecting a 23% year-on-year increase [3]. - China Petroleum & Chemical Corporation is collaborating with CATL to build a nationwide battery swap network, targeting the construction of at least 500 battery swap stations this year and a total of 10,000 in the future [3]. - China National Offshore Oil Corporation is advancing its CCUS projects, with the first offshore CCUS project in operation, expected to inject over 1 million tons of CO2 over the next decade [3]. Group 3: Oilfield Services Sector - The global upstream capital expenditure is expected to rebound in 2025, projected to exceed 582.4 billion dollars, marking a 5% year-on-year increase, which will benefit the oilfield services sector [4]. - The performance of oilfield service companies under the "Three Oil Giants" is improving, with China National Offshore Oil Corporation's subsidiaries reporting net profits of 0.887 billion, 0.541 billion, and 0.594 billion yuan, reflecting year-on-year growth of 40%, 14%, and 18% respectively [4].

Investment Rating - The report assigns a "Strong Buy" investment rating for the company [3]. Core Views - The company reported stable sales growth in Q1 2025, with revenue of RMB 1068.54 billion, a year-on-year decrease of 4.14%, and a net profit attributable to shareholders of RMB 365.63 billion, down 7.95% year-on-year [1][6]. - Despite a decline in oil prices, the company managed to increase its oil and gas net production by 4.8% year-on-year, reaching 188.8 million barrels of oil equivalent [6]. - The average oil price realized by the company in Q1 2025 was USD 72.65 per barrel, a decrease of 7.7% year-on-year, while the average gas price increased by 1.2% to USD 7.78 per thousand cubic feet [6]. Financial Data and Valuation - The company is projected to achieve total revenue of RMB 4541.46 billion, RMB 4854.01 billion, and RMB 5096.71 billion for the years 2025, 2026, and 2027 respectively, with net profits of RMB 1456.23 billion, RMB 1540.6 billion, and RMB 1592.97 billion for the same years [2][6]. - Earnings per share (EPS) are expected to be RMB 3.06, RMB 3.24, and RMB 3.35 for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (PE) ratios of 8.2, 7.7, and 7.5 [2][6]. - The company’s total assets are projected to grow from RMB 1,144.186 billion in 2025 to RMB 1,379.171 billion by 2027 [12]. Production and Cost Management - The company has successfully maintained a competitive cost advantage, with the average cost per barrel of oil at USD 27.03, a decrease of 2.0% year-on-year [6]. - The company’s capital expenditure in Q1 2025 was approximately RMB 277.1 billion, down 4.5% year-on-year, primarily due to reduced exploration and adjustment well activities [6]. Shareholder Information - The company has a total share capital of 47,530 million shares, with a current market capitalization of RMB 1189.2 billion [3]. - The major shareholder is Guoxin Investment Co., Ltd., holding a 0.44% stake in the company [3]. Market Performance - The company’s stock has shown a relative performance decline of 11% over the past 12 months compared to the CSI 300 index [5].

Investment Rating - The report maintains a "Buy" rating for both A and H shares of China National Offshore Oil Corporation (CNOOC) [1][6] Core Views - CNOOC's oil and gas production continues to grow steadily, contributing to high-quality development [1] - The company achieved a total revenue of RMB 106.9 billion in Q1 2025, a year-on-year decrease of 4% but a quarter-on-quarter increase of 13% [6] - The net profit attributable to shareholders for Q1 2025 was RMB 36.6 billion, down 8% year-on-year but up 72% quarter-on-quarter [6] - The report highlights the successful launch of projects leading to increased oil and gas production, with a net production of 189 million barrels of oil equivalent in Q1 2025, a 5% increase year-on-year [6] - CNOOC's capital expenditure for Q1 2025 was RMB 27.71 billion, a decrease of 4.5% year-on-year, with a total budget of RMB 125-135 billion for the year [6] - The report emphasizes the company's strong cost control, with a barrel of oil cost of USD 27.03, down 2% year-on-year [6] - CNOOC is focused on shareholder returns, with an expected dividend payout of approximately RMB 62.3 billion for 2025, resulting in a dividend yield of 5.2% for A shares and 8.4% for H shares before tax [6] - The report projects net profits of RMB 138.4 billion, RMB 141.8 billion, and RMB 146.7 billion for 2025, 2026, and 2027 respectively, with corresponding P/E ratios for A shares of 8.6, 8.4, and 8.1 [6] Financial Summary - Total revenue forecast for 2023A is RMB 416.609 billion, with a slight decline expected in 2025E to RMB 409.877 billion [1] - The net profit attributable to shareholders is projected to be RMB 138.391 billion in 2025E, showing a marginal increase from 2024A [1] - The earnings per share (EPS) is expected to be RMB 2.91 in 2025E, with a steady increase projected through 2027 [1] - The report indicates a decrease in capital expenditures and a focus on maintaining profitability through effective cost management [6][7]

Investment Rating - The report maintains a "Buy" rating for both A and H shares of China National Offshore Oil Corporation (CNOOC) [1][6] Core Views - CNOOC's oil and gas production continues to grow steadily, contributing to high-quality development [6] - The company achieved a total revenue of 106.9 billion yuan in Q1 2025, a year-on-year decrease of 4% but a quarter-on-quarter increase of 13% [6] - The net profit attributable to shareholders for Q1 2025 was 36.6 billion yuan, down 8% year-on-year but up 72% quarter-on-quarter [6] - The report highlights the successful launch of projects leading to increased oil and gas production, with a net production of 189 million barrels of oil equivalent in Q1 2025, a 5% increase year-on-year [6] - CNOOC's capital expenditure for Q1 2025 was 27.71 billion yuan, a decrease of 4.5% year-on-year, with a total budget of 125-135 billion yuan for the year [6] - The report emphasizes the company's strong cost control, with a barrel of oil cost of 27.03 USD in Q1 2025, down 2% year-on-year [6] - CNOOC is focused on shareholder returns, with an expected dividend payout of approximately 62.3 billion yuan for 2025, resulting in a dividend yield of 5.2% for A shares and 8.4% for H shares before tax [6] Financial Forecasts - The report provides financial forecasts for CNOOC, projecting total revenue of 409.88 billion yuan for 2025, with a year-on-year decrease of 2.53% [7] - The net profit attributable to shareholders is forecasted to be 138.39 billion yuan for 2025, with a slight increase of 0.33% year-on-year [7] - The report anticipates earnings per share (EPS) of 2.91 yuan for 2025, with a projected price-to-earnings (P/E) ratio of 8.59 for A shares and 5.32 for H shares [7][8]

25Q1 油气当量产量维持高增，天然气产量同比增长10.2%公司持续加快上产步伐，25Q1 实现净产量 188.8 百万桶油当量，同比增长4.8%。其中，原油产量同比+3.4%，天然气产量同比+10.2%；中国净产 量130.8百万桶油当量，同比+6.2%，主要得益于渤中19-6 等油气田的贡献；海外净产量58 百万桶油当 量，同比+1.9%，主要由于巴西Mero2 等项目的贡献。实现价格方面，25Q1 公司平均实现油价72.65 美 元/桶，同比-7.7%，平均实现天然气价格为7.78 美元/千立方英尺，同比+1.2%。2025Q1，公司资本支出 277 亿元，有力支撑新项目建设和产量增长。 25Q1 公司共获得2 个新发现，并成功评价14 个含油气构造。其中，惠州19-6油田探明地质储量超1 亿 吨油当量，涠洲10-5 油气田展示了北部湾盆地潜山领域广阔的勘探前景；成功评价绥中36-1 南，有望 成为中型油田。期内，番禺10/11 区块联合开发项目、东方29-1 气田开发项目、渤中26-6 油田开发项目 （一期）、文昌19-1 油田二期项目以及巴西Buzios7 项目等多个新项目已成功投产。其他新项目正在 ...

Investment Rating - The report maintains a "Buy" rating for China National Offshore Oil Corporation (CNOOC) [1] Core Views - The company's performance demonstrates resilience during periods of oil price fluctuations, with significant cost reduction and efficiency improvements [6][11] - CNOOC's net profit for Q1 2025 is projected to be 366 billion yuan, reflecting a year-on-year decrease of 7.95% but a quarter-on-quarter increase of 71.84% [5][11] - The company continues to enhance its production capacity and maintain cost advantages, with a focus on high-quality development and stable production growth [10][11] Summary by Sections Financial Performance - In Q1 2025, CNOOC achieved total revenue of 1,069 billion yuan, a year-on-year decrease of 4.14% but an increase of 13.09% compared to the previous quarter [5] - The average realized oil price was 72.65 USD per barrel, down 7.7% year-on-year, while natural gas prices increased by 1.2% to 7.78 USD per thousand cubic feet [7] Production and Exploration - CNOOC's net production in Q1 2025 reached 188.8 million barrels of oil equivalent, a year-on-year increase of 4.8%, with natural gas production growing by 10.2% [7] - The company made two new discoveries and successfully evaluated 14 oil and gas structures during the quarter, indicating strong exploration potential [8] Cost Management - The company reported a decrease in oil production costs to 27.03 USD per barrel, down 2.0% year-on-year, showcasing its effective cost control measures [9] - CNOOC's operating cash flow for Q1 2025 was 573 billion yuan, reflecting a year-on-year decrease of 4.5% but maintaining a high level of cash flow [6] Capital Expenditure and Future Outlook - CNOOC plans to maintain high capital expenditures in 2025, with a budget of 1250-1350 billion yuan to support stable production growth [10] - The company aims for a production target of 760-780 million barrels of oil equivalent in 2025, with a focus on sustainable growth in the following years [10][11]

Core Viewpoint - China National Offshore Oil Corporation (CNOOC) reported a decline in revenue and net profit for Q1 2025, despite an increase in oil and gas production, highlighting the impact of falling international oil prices on financial performance [1][2][3] Financial Performance - In Q1 2025, CNOOC achieved operating revenue of 106.85 billion yuan, a year-on-year decrease of 4.1% [1] - The net profit attributable to shareholders was 36.56 billion yuan, down 7.9% year-on-year [1] - The average realized oil price was 72.65 USD/barrel, a decrease of 7.7% year-on-year, while the average realized gas price increased by 1.2% to 7.78 USD/thousand cubic feet [2] Production and Exploration - CNOOC's net production reached 188.8 million barrels of oil equivalent, an increase of 4.8% year-on-year, with domestic production rising by 6.2% [1][2] - The company made two new discoveries and successfully evaluated 14 oil and gas structures during the quarter [2] - Significant contributions to production came from the Bohai region and overseas projects, particularly from Brazil's Mero2 [1][2] Capital Expenditure and Projects - Capital expenditure for the quarter was approximately 27.71 billion yuan, a decrease of 4.5% year-on-year [2] - Several new projects, including the Panyu 10/11 block and the Wenchang 19-1 oil field, have been successfully put into production [2][3] - The Wenchang 9-7 oil field development project was announced to have commenced production, with an expected peak output of about 12,000 barrels of oil equivalent per day by 2027 [3][4] Future Outlook - CNOOC's controlling shareholder announced plans to increase shareholdings in the company by 2 to 4 billion yuan over the next 12 months, reflecting confidence in the company's long-term investment value [3] - The company aims to enhance operational efficiency and achieve its annual production and operational targets [3]