CNOOC (600938) rose strongly on the 29th and closed the limit in the afternoon, setting a new high since its listing. As of the closing, the stock was reported at 17.01 yuan, with more than 170000 orders sealed on the trading board, with a full day turnover of 6.85 billion yuan and the latest market value of 803.7 billion yuan.
The net profit of the first quarter exceeded the expectation by 130%
In the first quarter report of 2022 disclosed yesterday, the company achieved an operating revenue of 90.898 billion yuan in the first quarter, a year-on-year increase of 73.52%; The net profit attributable to shareholders of listed companies was 34.301 billion yuan, a year-on-year increase of 131.67%; More than previously expected.
Previously, the company expected to achieve an operating revenue of about 69 billion yuan to 83 billion yuan in the first quarter, 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, a year-on-year increase of 62% to 89%.
CNOOC pointed out that in the first quarter of 2022, China’s economy had a generally stable start, and China’s gross domestic product (GDP) increased by 4.8% year-on-year. After the sharp rise of international oil prices in the first quarter, the high level fluctuated, and the average price of Brent was 97.90 US dollars / barrel. The company seized the opportunity of oil price recovery, continued to increase oil and gas reserves and production, actively promoted the green transformation of energy, deeply promoted the improvement of quality, cost reduction and efficiency, and achieved satisfactory business performance.
In the first quarter, the company achieved a total net output of 151.0 million barrels of oil equivalent, a year-on-year increase of 9. 64%。 Among them, China’s net output was 109.3 million barrels of oil equivalent, a year-on-year increase of 15.4%, mainly due to the production contribution brought by the commissioning of new projects such as Caofeidian 6-4, Liuhua 21-2 and deep sea No. 1 gas field; Overseas net output was 41.7 million barrels of oil equivalent, a year-on-year decrease of 3. 0%, mainly due to the year-on-year decrease in net output of Iraq missan project due to the contract mode.
In the first quarter, the company obtained 4 new discoveries and 13 evaluation wells were successful. Among them, Bozhong 26-6 and Bozhong 19-2 in China’s sea areas have made major breakthroughs and are expected to become large and medium-sized oil fields. Overseas, the Stabroek block in Guyana has newly discovered fangtooth and laulau. Among the new projects planned to be put into operation this year, the East Development Project of Weizhou 12-8 oilfield and Guyana Liza phase II project have been successfully put into operation, and other projects have been promoted as planned.
In the first quarter, the company’s unaudited oil and gas sales revenue reached about 82.38 billion yuan, a year-on-year increase of 70.44%, mainly due to the rise of international oil prices and increased sales. The net profit attributable to the shareholders of the parent company reached 34.3 billion yuan, a year-on-year increase of 131.67%. The main cost of the company’s barrel of oil is $30.59. In this quarter, the average realized oil price of the company was 97.47 US dollars / barrel, with a year-on-year increase of 65.01%, which is basically consistent with the trend of international oil price; The average realized gas price was US $8.35/thousand cubic feet, with a year-on-year increase of 24.44%, mainly due to the price rise caused by the impact of market supply and demand.
In the first quarter, the company’s capital expenditure was about 16.93 billion yuan, a year-on-year increase of 5. The workload increased by 58% year-on-year. During the period, the company performed well in health, safety and environmental protection.
Organization firmly optimistic
CNOOC entered the A-share market on April 21, opening 20% higher on the first day, and once reached the upper limit of 44% in the session. As of the closing of the day, the stock was reported at 13.79 yuan, up 27.69%, with a full day turnover of 12.12 billion yuan. The stock rose by the limit this time, but it was corrected continuously in the following two trading days and rose continuously in the last three trading days.
Statistics show that CNOOC 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 has been maintained at more than 10 years in recent three 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.
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.
Tianfeng Securities Co.Ltd(601162) pointed out that the company responded to China’s energy security strategy and insisted on increasing oil and gas reserves and production. In 2021, the oil and gas production reserves reached a new record, ranking second in the country, and the reserve substitution rate remained above 130% for three consecutive years. In 2021, the crude oil output was 452.4 million barrels, with a year-on-year increase of 7.9%, accounting for about 28% of the country; Natural gas production reached 700.6 billion cubic feet, an increase of 10.8% year-on-year, accounting for about 11% of the country. The future output growth mainly comes from the Bohai Sea, the South China Sea and Stabroek region of Guyana. The planned output has an average annual compound growth rate of 6% in three years, leading international peers.
The company has achieved cost reduction for seven consecutive years, and reduced to a minimum of 26 US dollars / barrel of oil equivalent in 2020. In 2021, the cost increased slightly with the rise of oil price to 29.5 US dollars / barrel of oil equivalent. The barrel of oil cost is leading the industry and has a significant cost competitive advantage.
Cinda Securities said that whether it is traditional oil and gas resources or US shale oil, capital expenditure is the main reason for limiting crude oil production. Considering that the global capital expenditure on crude oil is insufficient for a long time, the elasticity of global crude oil supply will decline. In the transformation of old and new energy sources, the demand for crude oil is still growing, and the world will face the problem of crude oil shortage for many years. The international oil price will usher in an upward turning point in 2022. In the medium and long term, the oil price will remain high for a long time, and the energy resources are expected to be in an upward cycle in the next 3-5 years. We will continue to be firmly optimistic about this round of energy inflation, Continue to be firmly optimistic about the historic allocation opportunities of energy resources such as crude oil under the capacity cycle.
Driven by China’s policy of increasing reserves and production and the “seven-year action plan” of CNOOC, CNOOC will maintain a steady increase in crude oil production. In 2021, the company’s oil and gas production was 573 million barrels of oil equivalent. By 2022, the company’s net oil and gas production target will be Shanghai Zhongyida Co.Ltd(600610) million barrels of oil equivalent, of which China accounts for about 69% and overseas accounts for about 31%. From 2023 to 2024, the company’s net oil and gas production will reach 640650 million barrels of oil equivalent and 680690 million barrels of oil equivalent respectively, of which China accounts for about 65%, overseas accounts for about 35%, and the proportion of overseas production will increase. In the next three years, according to the above data, the growth rate of the company’s net output is expected to be about 6-7%. By 2025, the company plans to achieve the daily output target of 2 million barrels of oil equivalent and the annual net output target of 730 million barrels of oil equivalent. The growth of oil and gas production will further expand the performance scale of the company. The capital expenditure in 2022 is planned to be RMB 90-100 billion. According to the production target for the next three years published by the company’s 2022 strategic outlook, the growth rate of crude oil production in 20222024 is expected to be 4.3%, 6.6% and 6.2% respectively.
The agency said that considering that the company benefited from the rise of crude oil price and production growth, the performance growth of the company accelerated from 2022 to 2024, the valuation was at the absolute bottom of history, significantly lower than the industry level, and enjoyed high dividends, maintaining the “buy” rating of the company’s A shares and H shares.
