After the three major telecom operators gathered in a shares, “three barrels of oil” will also converge in a shares!
According to the subscription schedule, CNOOC will start the subscription on April 12. In the morning of April 11, CNOOC announced on the Hong Kong stock exchange that after completing the preliminary inquiry to the inquiry object on April 6 and April 7, CNOOC would issue 2.6-2.99 billion RMB shares at the issue price of RMB 10.80 per share.
raise 35 billion yuan to develop the company’s main business
On March 31, CNOOC published the letter of intent for initial public offering (A shares).
CNOOC is an independent upstream company in the oil industry chain, and its main oil and gas resources are at sea. According to the prospectus, CNOOC’s main business is the exploration, development, production and sales of crude oil and natural gas. It is China’s largest offshore crude oil and natural gas producer and one of the world’s largest independent oil and gas exploration and production groups.
CNOOC plans to raise 35 billion yuan for the return of A-Shares this time, which will be used to develop the company’s main business. Among them, 30 billion yuan is used for oil and gas field project development and 5 billion yuan is used to supplement working capital. Oil and gas field development projects include payara oil field in Guyana, Liuhua 11-1 / 4-1 oil field and Lingshui 17-2 gas field. CNOOC said that with the completion and operation of raised investment projects, CNOOC’s oil and gas reserves and production scale will be greatly improved, which is expected to further enhance the competitiveness of the company’s main business.
Under the background of complex and changeable international political situation and sharp fluctuation of oil price, low barrel oil cost has become the core competitiveness of oil companies and the key to resist the risk of oil price fluctuation.
In an interview with China Securities Journal and China Securities Taurus, the person in charge of CNOOC’s relevant business said that CNOOC’s barrel oil production cost is mainly composed of operating expenses, depreciation consumption and amortization, disposal expenses, sales and management expenses, among which barrel oil operating expenses and barrel oil depreciation and amortization account for 80% of the main cost of barrel oil. Therefore, the control of operating expenses and depreciation and amortization costs should be mainly considered to reduce the cost of oil barrels.
It is expected to benefit from the high atmosphere of the industry
According to the issuance arrangement, CNOOC will use the “green shoe” mechanism in this issuance, that is, within 30 days of listing, the lead underwriter will buy shares in call auction at a price not higher than the issuance price according to the market conditions. This mechanism is conducive to stabilizing the performance of new shares after listing, that is, if the performance of new shares is poor and falls below the issuance price, the green shoe mechanism can be started to buy in the secondary market.
Since 2021, international crude oil prices have continued to rise. Industry insiders generally believe that oil prices may remain high when global demand picks up but supply is insufficient Everbright Securities Company Limited(601788) said that under the background of the downturn of global crude oil capital expenditure, Petrochina Company Limited(601857) , China Petroleum & Chemical Corporation(600028) , CNOOC insisted on increasing capital expenditure and made a breakthrough in oil and gas reserves under the strategic guidance of “increasing reserves and increasing production”, which is expected to benefit from the high outlook of the industry in the long run.
As the world’s largest pure upstream oil and gas company, CNOOC actively responded to the policy requirements of “increasing reserves and production”, strengthened exploration and development, and the scale of oil and gas assets increased steadily. The company’s net oil and gas output increased from 332 million barrels of oil equivalent in 2011 to 573 million barrels of oil equivalent in 2021, a record high; Oil and gas reserves increased from 3.190 billion barrels of oil equivalent in 2011 to 5.728 billion barrels of oil equivalent in 2021, a year-on-year increase of 79.56%.
It is worth noting that CNOOC’s main business is concentrated in the upstream, so its performance is greatly affected by the international crude oil price. According to the financial data, in 2018, 2019 and 2020, the oil and gas sales revenue of CNOOC was 186557 billion yuan, 197173 billion yuan and 139601 billion yuan respectively. In 2020, its profit decreased due to the decline of oil price in the international market.
In 2021, CNOOC achieved an operating revenue of 246112 billion yuan, a year-on-year increase of 58.4%; The corresponding attributable net profit was about 70.32 billion yuan, a year-on-year increase of 181.77%. CNOOC said that in 2021, the company’s profitability improved, mainly due to the rise of international oil prices and the increase of the company’s production.
high share dividends
CNOOC not only pays attention to the needs of business development, but also takes into account the dividend return of shareholders. After 20 years of listing, CNOOC has accumulated dividends of HK $354.2 billion, ranking fourth in Hong Kong stocks and first in the energy industry. The average dividend payout rate reached 43%, and the cumulative return since listing was 1610%. In 2022, the company also arranged special dividends on the 20th anniversary of listing.
In the 2022 strategic outlook, CNOOC mentioned that the annual dividend payment rate of the company is expected to be no less than 40% from 2022 to 2024 on the premise that the proposed dividend of each year is approved by the general meeting of shareholders; Regardless of the company’s operating performance, the absolute value of the annual dividend is expected to be no less than HK $0.70 per share in the next three years.
The energy crisis since the second half of 2021 has made the international oil and gas prices continue to rise, and the conflict between Russia and Ukraine at the beginning of this year is even worse. The market’s concerns about global oil and gas supply have intensified, and the oil price has come out of an all-time high. The agency expects the oil price to remain above US $100 / barrel for a long time, and the price of natural gas has repeatedly hit new highs.
In this context, CNOOC, as a pure oil and gas target, has a strong trend in Hong Kong stocks, and its share price has risen by more than 40% compared with the beginning of the year.
