Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company [1][6]. Core Insights - The company's performance in 2025 saw a decline in revenue and net profit, primarily due to falling oil prices and the appreciation of the RMB. However, with escalating geopolitical risks in the Middle East, oil prices may rise in 2026, potentially benefiting the company's performance [4]. - The company achieved an average oil price of $66.47 per barrel in 2025, a decrease of $10.28 per barrel year-on-year, but the discount to Brent crude narrowed by $1.69 per barrel compared to the previous year [4]. - Oil and gas production increased in 2025, with oil production at 599.7 million barrels and gas production at 177.6 million barrels, representing year-on-year growth of 6% and 12%, respectively. The company expects production to reach 780-800 million barrels in 2026, with a growth rate adjustment due to ongoing planning [4]. - The company maintained a low oil cost of $27.90 per barrel, a decrease of $0.62 per barrel year-on-year, benefiting from lower taxes and operational costs [4]. - Capital expenditures in 2025 were lower than the initial target, with actual spending at 120.5 billion RMB, and the company plans to maintain capital expenditures at a high level in 2026 [4]. - The company has a dividend payout ratio of 45%, with a total dividend of 1.28 HKD per share for 2025, aligning with its commitment to maintain a payout ratio of no less than 45% from 2025 to 2027 [4]. Financial Summary - In 2025, the company reported total revenue of 398.22 billion RMB, a year-on-year decrease of 5.3%, and a net profit attributable to shareholders of 122.08 billion RMB, down 11.5% year-on-year [5]. - The projected net profit for 2026-2028 is 157.24 billion RMB, 157.42 billion RMB, and 162.08 billion RMB, with respective growth rates of 28.8%, 0.1%, and 3.0% [6]. - The earnings per share (EPS) for 2026 is projected to be 3.31 RMB, with a price-to-earnings (P/E) ratio of 12.42 for A-shares and 7.72 for H-shares [6].

Investment Rating - The investment rating for China National Offshore Oil Corporation (CNOOC) is "Buy" [1] Core Views - The overall performance of the company meets expectations, with Q3 oil prices rising, but profits declining due to typhoon impacts on production and increased costs [3] - The company achieved an oil price of $66.62 per barrel in Q3, a year-on-year decrease of $9.79 per barrel, but a quarter-on-quarter increase of $0.85 per barrel [3] - The company’s oil and gas production in Q3 was 149 million barrels of oil equivalent and 44.7 million barrels of oil equivalent, representing year-on-year increases of 7.12% and 10.96%, respectively [3] - The company maintains a low oil cost advantage, with a Q3 oil cost of $27.35 per barrel, a year-on-year decrease of $1.58 per barrel, but a quarter-on-quarter increase of $0.50 per barrel [3] - The company is expected to continue to perform well from 2025 to 2027, with projected net profits of 1350.38 billion, 1371.56 billion, and 1453.42 billion yuan, respectively [3] Financial Summary - For the first three quarters of 2025, the company achieved revenue of 3125.03 billion yuan, a year-on-year decrease of 4.15%, and a net profit attributable to shareholders of 1019.71 billion yuan, a year-on-year decrease of 12.59% [1] - The basic earnings per share (EPS) for the first three quarters was 2.14 yuan, a year-on-year decrease of 13.01% [1] - The company’s projected EPS for 2025, 2026, and 2027 are 2.84, 2.89, and 3.06 yuan per share, respectively [3]

Investment Rating - The investment rating for China National Offshore Oil Corporation (CNOOC) is "Buy" [1] Core Views - The overall performance of the company meets expectations, with a decline in profits year-on-year due to falling oil prices, but the company shows good performance in price differentials and production increases [3] - The company has seen a narrowing of the price discount compared to Brent crude oil, with an average oil price of $69 per barrel in H1 2025, down from a $3 discount in the previous year to about $1 [3] - Natural gas sales prices have increased, with a Q2 price of $8 per thousand cubic feet, reflecting a year-on-year increase of 1.60% and a quarter-on-quarter increase of 3.03% [3] - Significant growth in natural gas production was noted, with H1 2025 oil and gas production at 296.1 million and 88.5 million barrels of oil equivalent, respectively, representing year-on-year increases of 4% and 12% [3] - The company maintains a low oil production cost advantage, with a H1 2025 cost of $26.94 per barrel, which is stable compared to Q1 and down $0.8 from the previous year [3] - Capital expenditures decreased by 9% year-on-year, with a budgeted expenditure of 125 billion to 135 billion yuan for 2025 [3] - Profit forecasts for 2025-2027 predict net profits of 1350.29 billion, 1397.82 billion, and 1480.96 billion yuan, with corresponding EPS of 2.84, 2.94, and 3.12 yuan per share [3] Financial Summary - For H1 2025, the company achieved revenue of 207.61 billion yuan, a year-on-year decrease of 8.45%, and a net profit of 69.53 billion yuan, down 12.79% [1][2] - The basic earnings per share for H1 2025 was 1.46 yuan, reflecting a year-on-year decline of 13.10% [1] - In Q2 2025, the company reported revenue of 100.75 billion yuan, a year-on-year decrease of 12.62% and a quarter-on-quarter decrease of 5.71% [2] - The net profit for Q2 2025 was 32.97 billion yuan, down 17.60% year-on-year and 9.83% quarter-on-quarter [2]