China National Offshore Oil Corporation – CNOCC (00883.HK)

Business Summary:

CNOCC Limited is the largest producer of offshore crude oil and natural gas in China and one of the world’s largest independent oil and gas exploration and production groups. She mainly engages in exploration, development, production and sale of crude oil, natural gas and other petroleum products. The Group owns four major oil-producing areas offshore China: the Bohai Bay, the western South China Sea, the eastern South China Sea and the East China Sea. Her assets are spread across Asia, Africa, North America, South America, Oceania and Europe. The stock is also listed on the Shanghai Stock Exchange, as code of 600938.SS.  

Financial Summary:

Net profit attributable to the parent company in the first half of the year 2025 was RMB 69.5 billion, a year-on-year decrease of 12.8%, compared with the best level recorded in 2024 during in the same period in history. Total revenue dropped 8.4% YoY to RMB207.608 billion.

The main cost of a barrel of oil is US26.94 (previous US$27.75) barrel of oil equivalent, maintaining a good cost competitive advantage. The average realized oil price was USD 68.29 per barrel (YOY decrease of 13.6%). The interim dividend was HK$0.73 per share (payout ratio:45.5%). During the period, the group’s net oil and gas production was 384.6 million barrels of oil equivalent, a year-on-year increase of 6.1%, and its oil and gas sales revenue was RMB 171.7 billion, a year-on-year decrease of 7%. 

The group accelerated the construction of major projects and achieved new highs in oil and gas production.

Risk:

1. Fluctuating oil price limit upside potential for stock prices
2. In view of the increase in geopolitical risks, the group is replying more on domestic growth.
3. Exposure to RMB currency fluctuations and any possibly related loss from hedges
4. Higher-than-expected cost for material sourcing, production cost & network expansion may occur.

Technical Analysis:

The stock prices hit 52-week high of $23.3 on 12 Nov, 2025. The price has dropped by 9.6% in 10 trading days.  Compared with 52-week low, the price has jumped by 49.2%. It is suggested to accumulate the share between $19.5 and the present price. Given the protection from low stock valuation, the target price for medium term and long term is $23 & $25 respectively. Cut-loss price will be $18.5.

References

www.hkex.com.hk 

www.etnet.com.hk

www.cnoocinternational.com

I, Gary Tam, am a licensed person under the Securities and Futures Commission. Until the date this commentary was published, neither I and/or my affiliates are the beneficiary of the securities mentioned herein or are entitled to any financial interests in relation thereto.