Core Viewpoint - China National Offshore Oil Corporation (CNOOC) reported a strong financial performance for the fiscal year 2024, with significant increases in revenue and net profit, driven by both domestic and international production growth [1][2] Financial Performance - In 2024, CNOOC achieved oil and gas sales revenue of 355.6 billion yuan and a net profit attributable to shareholders of 137.9 billion yuan, representing a year-on-year growth of 11.4% [1] - The average cost of crude oil equivalent for the year was $28.52 per barrel, a decrease of approximately 1.1% year-on-year, reinforcing the company's cost competitiveness [1] Production and Exploration - CNOOC's net production of oil and gas reached 726.8 million barrels of oil equivalent, marking a year-on-year increase of 7.2% [1] - Domestic production benefited from contributions from fields such as Bohai Zhong 19-6, with a 5.6% increase, while international production saw a significant rise of 10.8% due to the commissioning of the Payara project in Guyana [1] - The company made 11 new oil and gas discoveries in 2024, including significant projects like Longkou 7-1 and Qinhuangdao 29-6, and successfully evaluated 30 oil and gas structures [1] - As of the end of 2024, CNOOC's net proven reserves reached 7.27 billion barrels of oil equivalent, a year-on-year increase of 7.2%, with a stable reserve life of 10 years [1] Strategic Outlook - CNOOC's Chairman, Wang Dongjin, emphasized the company's commitment to driving reserve growth and production through technological innovation, maintaining cost advantages, and providing stable dividends to shareholders [2] - The company plans to continue its efforts in enhancing quality and efficiency, aiming for high-quality development in the future [2]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The recent discovery of high-yield oil and gas flow at the Weizhou 10-5 oil and gas field in the Beibu Gulf marks a significant breakthrough in oil and gas exploration in the region, enhancing the company's resource base [1][2] - The company has achieved notable oil and gas discoveries in various Chinese maritime areas, solidifying its resource foundation and ensuring stable supply for economic development [2] - The company plans to maintain high capital expenditure, with a budget of 125-135 billion yuan for 2025, focusing on exploration and development to support steady production growth [3] Summary by Sections Exploration Breakthrough - The Weizhou 10-5 oil and gas field, located approximately 75 kilometers from Beihai, Guangxi, has a significant oil and gas layer thickness of 283 meters, with natural gas production of about 370,000 cubic meters per day and oil production of approximately 800 barrels per day [2] Production and Capital Expenditure - The company targets an oil equivalent production of 760-780 million barrels for 2025, representing a year-on-year growth of 6.9%, with further targets of 780-800 million barrels for 2026 and 810-830 million barrels for 2027 [3] - The capital expenditure allocation for 2025 includes 61% for exploration, 20% for development, and 16% for production, with a domestic to overseas expenditure ratio of 68% to 32% [3] Profitability and Valuation - The company forecasts net profits of 145.7 billion yuan, 158.2 billion yuan, and 163.9 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 3.06 yuan, 3.33 yuan, and 3.45 yuan per share [4] - The report highlights the company's cost leadership and high dividend policy, emphasizing its resilience during oil price fluctuations [4]

Investment Rating - The report maintains a "Buy" rating for China National Offshore Oil Corporation (CNOOC) [6] Core Views - Significant breakthroughs in oil and gas exploration in the Beibu Gulf, particularly the Weizhou 10-5 oil and gas field, which achieved high production rates, indicating a promising exploration outlook for the region [1][2] - The company has made substantial oil and gas discoveries in various Chinese maritime areas, reinforcing its resource base and ensuring stable supply for economic development [2] - The company plans to maintain high capital expenditures, with a budget of 125-135 billion yuan for 2025, focusing on exploration and production to support steady growth in output [3][4] Summary by Sections Exploration and Production - The Weizhou 10-5 oil and gas field, located approximately 75 kilometers from Beihai, Guangxi, has a significant oil and gas layer thickness of 283 meters, with natural gas production of about 370,000 cubic meters per day and oil production of approximately 800 barrels per day [2] - CNOOC has achieved major oil and gas discoveries in the South China Sea and Bohai Sea, including billion-ton oil field discoveries, which further solidify its resource foundation [2] Financial Projections - The company forecasts a production target of 760-780 million barrels of oil equivalent for 2025, representing a year-on-year growth of 6.9%, with further targets of 780-800 million barrels for 2026 and 810-830 million barrels for 2027 [3] - The projected net profits for 2024, 2025, and 2026 are 1457 billion yuan, 1582 billion yuan, and 1639 billion yuan respectively, with corresponding EPS of 3.06 yuan, 3.33 yuan, and 3.45 yuan [4][11] Valuation Metrics - The report maintains the profit forecast for 2024-2026, highlighting the company's resilience during oil price fluctuations and its commitment to high dividend policies [4] - The company is expected to maintain a cost advantage in the industry while pursuing high-quality development and stable production growth [3][4]