Focus of the week
[CNOOC launched the green shoe mechanism and officially launched the A-share subscription]
CNOOC launched online subscription on Tuesday, and “three barrels of oil” will gather together in a shares. According to the announcement, CNOOC plans to issue 2.99 billion shares and raise 35 billion yuan. The raised funds will be used to develop the company’s main business and many oil and gas field development projects outside China. It is worth noting that last year, CNOOC’s reserve production continued to break through, the oil and gas sales revenue increased significantly, and the annual net profit hit a record high.
As of the closing on April 8, CNOOC Hong Kong shares reported HK $11.66 per share, up 2.64%, with a total market value of HK $520.6 billion. CNOOC (00883. HK) announced on the morning of April 11 at the Hong Kong stock exchange that after completing the preliminary inquiry to the inquiry object on April 6 and April 7, the company will issue 2.6 billion RMB shares (before exercising the over allotment option) to 2.99 billion RMB shares (if exercising the over allotment option in full) at the issue price of RMB 10.80 per share.
The green shoe mechanism will be enabled, which is expected to benefit from the high outlook of the industry for a long time
The announcement shows that the number of shares to be issued to the public this time is 2600 million, accounting for about 5.50% of the total share capital of the company after the issuance (before the exercise of the over allotment option), all of which 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 15.00% of the initial issuance scale. If the over allotment option is fully exercised, the total number of shares issued will be expanded to 2990 million shares, accounting for about 6.28% of the total share capital after issuance (after the over allotment option is fully exercised). All the over allotted shares are allotted to online investors.
CNOOC will enable the green shoe mechanism in this offering, that is, the over allotment option. This mechanism is conducive to stabilizing the performance after the IPO, that is, if the IPO performance is poor and falls below the issuance price, it can start the green shoe mechanism to buy in the secondary market.
Everbright Securities Company Limited(601788) said that in the context of the downturn in 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 production”, which is expected to benefit from the high outlook of the industry in the long run.
Remarkable results have been achieved in increasing reserves and production, maintaining the leading position of national oil increment
Since the listing of Hong Kong stocks in 2001, CNOOC has made more than 300 commercial discoveries and has more than 240 oil and gas fields. At the same time, CNOOC has continuously promoted the continuous growth of reserves. In 2021, the net proved reserves reached 5.73 billion barrels of oil equivalent, 3.2 times that when Hong Kong stocks were listed. The service life of reserves in recent three years has been maintained at more than 10 years, ranking in the forefront of the industry. In the past two years, CNOOC’s crude oil output increased by about 80% of the total increment of crude oil in China, and continued to maintain the leading position of national oil increment. Among them, the crude oil output of Bohai oilfield exceeded 30 million tons in 2021, becoming China’s largest crude oil production base.
According to the prospectus, CNOOC expects to raise 35 billion yuan, which will be used to develop the company’s main business. It is intended to be used for a number of oil and gas field development projects outside China, including Guyana payara oilfield, Liuhua 11-1 / 4-1 oilfield and Lingshui 17-2 gas field.
Last year, the net profit increased by nearly two times and actively transformed to green and low-carbon
In 2021, CNOOC achieved an annual oil and gas sales revenue of 222.1 billion yuan, a year-on-year increase of 59.1%, a net profit of 70.3 billion yuan, a year-on-year increase of 181.7%, and a basic profit of 1.57 yuan per share, reaching the best level in history.
Combined with the development trend of CNOOC industry, the company is expected to achieve a year-on-year growth of about 83.2% to 69.0 billion yuan in the first quarter of 2022; The net profit attributable to shareholders of the parent company was about 24 billion yuan to 28 billion yuan, a year-on-year increase of 62% to 89%.
It is worth noting that in 2021, CNOOC actively promoted the green and low-carbon transformation, and the Qinhuangdao / Caofeidian shore power project was successfully put into operation, becoming a model for green oilfield construction. The company established the Ministry of new energy and new energy branch to speed up the layout of the green industrial chain, and the full capacity grid connected power generation of the first offshore wind power project.
