“Big Mac” CNOOC (600938) applied for purchase today. The company’s issue price is 10.8 yuan / share, the upper limit of single account subscription is 780000 shares, and Dingge subscription needs to hold the market value of 7.8 million yuan in Shanghai. Its Hong Kong shares closed at HK $11.16 yesterday, with a market value of HK $498.3 billion.
Generally, for large cap stocks with a high upper limit of online subscription, the signing rate is often high. At the beginning of the year, the subscription limit of China Mobile Online Dingge, which landed in Shanghai stock market, is 253000 shares, of which the signing rate is 0.124%; Last year, China Telecom Corporation Limited(601728) online top grid, which landed in Shanghai stock market, applied for up to 3118000 shares, of which the signing rate was 0.956%. CNOOC has the highest online subscription limit for new shares this year, so it is expected to become one of the easier winning new shares.
It is worth noting that CNOOC will enable the “green shoe” mechanism in this offering, that is, the over allotment option, which is conducive to stabilizing the performance after the listing of new shares.
CNOOC plans to issue 2.6 billion shares
raised 28 billion yuan
According to the issuance arrangement, CNOOC made a subscription on April 12. The subscription is referred to as “CNOOC subscription” for short, and the subscription code is “730938”. The issuing price of the company is 10.8 yuan / share, the upper limit of single account subscription is 780000 shares, and Dingge subscription needs to hold the market value of 7.8 million yuan in Shanghai.
The number of shares issued by the company this time is 2.6 billion, accounting for about 5.5% of the total share capital of the company after the issuance (before the exercise of the over allotment option). All of them are new shares issued to the public without the transfer of old shares. The issuer grants the recommendation institution (co lead underwriter) an over allotment option that does not exceed 15% of the initial issuance scale. If the over allotment option is fully exercised, the total number of shares issued will be expanded to 2.99 billion shares, accounting for about 6.28% of the total share capital after issuance (after the over allotment option is fully exercised).
After this issuance, the total share capital of the company is 47.247 billion shares (before the exercise of the over allotment option). If the over allotment option is fully exercised, the total share capital of the company after issuance will be 47.637 billion shares (after the over allotment option is fully exercised).
If the issuance is successful, the total amount of funds raised by the company is expected to be 28.088 billion yuan before the exercise of the over allotment option. After deducting the expected issuance cost of 188 million yuan, the net amount of funds raised is expected to be 27.892 billion yuan; If the over allotment option is fully exercised, the total amount of funds raised by the company is expected to be 32.292 billion yuan. After deducting the issuance expenses of about 201 million yuan, the net amount of funds raised is expected to be 32.091 billion yuan.
The funds raised by the company will be mainly used to invest in Guyana payara oilfield development project, Liuhua 11-1 / 4-1 oilfield secondary development project, Guyana Liza oilfield phase II development project, Lufeng Oilfield Group regional development project, Lingshui 17-2 gas field development project, Lufeng 12-3 oilfield development project, Qinhuangdao 32-6 / Caofeidian 11-1 Oilfield Group onshore power application project and LvDa 6-2 oilfield development project, and supplement working capital at the same time.
According to the prospectus, CNOOC’s main business is the exploration, development, production and sales of crude oil and natural gas. It is the largest offshore crude oil and natural gas producer in China and one of the world’s largest independent oil and gas exploration and production groups. By the end of 2020, the company had net proven reserves of about 5.37 billion barrels of oil equivalent, a record high; The service life of reserves is more than 10 years. From 2018 to 2020, the reserve substitution rate of the company was 126%, 144% and 136% respectively, and the reserve substitution rate remained high.
Since it was listed on the stock exchange and the New York Stock Exchange in 2001, the net output of CNOOC has increased sixfold, maintaining the industry-leading output growth capacity. From 2018 to 2020, the company’s net oil and gas output was 475 million barrels of oil equivalent, 506 million barrels of oil equivalent and 528 million barrels of oil equivalent respectively, which continued to increase steadily, with an average annual compound growth rate of 5.45%. In 2021, the company’s net oil and gas output is expected to be about 570 million barrels of oil equivalent, with a year-on-year increase of about 8%. Looking forward to the future, the company will continue to seek effective production growth. The target of reserve substitution rate in 2022 is no less than 130%. The annual net production targets from 2022 to 2024 are Shanghai Zhongyida Co.Ltd(600610) million barrels of oil equivalent, 640650 million barrels of oil equivalent and 680690 million barrels of oil equivalent respectively.
At present, the company has more than 20 new projects under construction. In 2022, a total of 13 new projects outside China are planned to be put into operation, which will provide strong support for future output growth.
In China, the company carries out oil and gas exploration, development and production activities in the Bohai Sea, the west of the South China Sea, the east of the South China Sea and the East China Sea through self operation and cooperation with partners in the form of product sharing contract, and carries out unconventional oil and gas exploration, development and production activities on land. By the end of 2020, about 57.9% of the company’s net proved reserves and about 67.4% of its net output came from China.
Overseas, the company has diversified high-quality assets and holds interests in many world-class oil and gas projects. At present, the company’s assets cover more than 20 countries and regions in the world, including Indonesia, Australia, Nigeria, Iraq, Uganda, Argentina, the United States, Canada, the United Kingdom, Brazil, Guyana, Russia and the United Arab Emirates. By the end of 2020, overseas oil and gas assets accounted for about 50% of the company’s total oil and gas assets, and about 42.1% of the company’s net proved reserves and about 32.6% of its net output came from overseas.
In the field of new energy, the company complies with the general trend of low-carbon development in the global energy industry, makes use of rich experience in offshore production and management, actively explores the development of offshore wind power and other new energy businesses, and carries out research in cutting-edge technology fields. The company’s first offshore wind power generation project was connected to the grid in September 2020.
CNOOC BVI is the controlling shareholder of the company. Up to now, CNOOC BVI directly holds 28772726268 issued ordinary shares of the company, accounting for about 64.44% of the total issued shares of the company.
CNOOC was listed on the Hong Kong Stock Exchange on February 28, 2001, abbreviated as CNOOC. As of the closing on April 11, its share price was HK $11.16, with a market value of HK $498.3 billion.
benefiting from the rise of international oil prices
last year’s performance increased significantly
Statistics show that CNOOC is an upstream company focusing on oil and gas exploration, development and production, and the main source of income is the sales of crude oil and natural gas. Compared with upstream and downstream integrated oil companies, oil and gas price fluctuations are more sensitive to the business, revenue and profit of upstream companies. Since 2021, with the recovery of the world economy, the international oil price has rebounded sharply and the company’s performance has improved significantly.
The financial report shows that in 2021, the company achieved an operating revenue of 246112 billion yuan, an increase of 58.4% over last year; The net profit attributable to the shareholders of the parent company was 70.32 billion yuan, a year-on-year increase of 181.77%; After deducting non recurring profits and losses, the net profit attributable to the shareholders of the parent company was 68.171 billion yuan, an increase of 219% over last year.
The company pointed out that in 2021, the company’s profitability improved, mainly due to the rise of international oil prices and the increase of the company’s output.
Oil and gas sales business is the core sector of the company and also the main source of income of the company. In 2018, 2019, 2020 and January June 2021, the oil and gas sales business income was 186557 billion yuan, 197173 billion yuan, 139601 billion yuan and 100625 billion yuan respectively, accounting for 83.89%, 86.46%, 92% and 94.05% of the main business income respectively.
From January to June 2021, affected by the recovery of international oil prices, the company’s revenue also recovered rapidly. From January to June of 2021, the company achieved a main business income of 110233 billion yuan, an increase of 47.84% over January to June of 2020, including oil and gas sales income of 100625 billion yuan, a year-on-year increase of 51.69%.
In addition, the company expects to achieve an operating revenue of about 69 billion yuan to 83 billion yuan in the first quarter of 2022, with a year-on-year increase of 32% to 58%; The net profit attributable to shareholders of the parent company was about 24 billion yuan to 28 billion yuan, with a year-on-year increase of 62% to 89%; After deducting non recurring profits and losses, the net profit attributable to shareholders of the parent company was about 23.3 billion yuan to 27.3 billion yuan, with a year-on-year increase of 61% to 89%.
For the future trend of international oil prices, some institutions said that with the further increase of NATO sanctions against Russia, Russia’s oil and gas exports may be significantly impacted. The rebalancing of global supply and demand depends on the incremental supply of shale oil from OPEC and the United States. Considering that the production increasing capacity and willingness of OPEC and the United States may be lower than expected, the oil price is expected to remain around $100 / barrel in the next two years.
International oil prices are expected to remain high in the next two years, which will support the performance of oil and gas companies, including CNOOC. Some analysts pointed out that, as the pure upstream oil and gas investment target with scarce a shares, CNOOC will directly benefit from the rise of global oil prices
main board listed new shares perform well
Data show that since this year, the phenomenon of breaking the first day of IPO has occurred many times, but the performance of new shares listed on the main board is relatively beautiful.
According to the data, all the 16 new shares that landed on the main board this year rose and closed on the first day, of which Longyuan Power led the increase of 119.38%, and China Mobile rose only 0.52% on the first day. In terms of the number of connected boards, Hefu China recorded 12 connected boards, Lihang technology 10 connected boards, Wankong Zhizao 8 connected boards, Yuehai feed 7 connected boards and Lushan new material 5 connected boards.
