Credit Suisse kept CNOOC at Outperform and its top-pick of China’s three oil giants, with target price lifted from HK$13.3 to HK$13.5.
CNOOC posted a strong set of second-quarter results, showcasing the company robust operating leverage from oil price surge in the period, Credit Suisse said in a note.
CNOOC managed to keep all-in costs in check at $30.3/barrel of oil equivalent (BOE), a resilient performance despite cost inflation and tax increase, according to the note. The firm’s total oil and gas production rose 9.5% year over year in the second quarter, above its fiscal year 2022 guidance of a 5%-6% growth, the bank said.
Among CNOOC’s 13 new projects, three projects were put into operations in the first half of the year, and if the remaining ten projects are put into operation by the end of this year, its full-year output is expected to increase to 600 – 610 million BOE, according to the note.