According to a research report published by CICC, CNOOC's revenue for the first quarter increased 14% year-on-year, and net profit increased by 23.7%. Production exceeded expectations, driving quarterly performance higher than market expectations. During the period, CNOOC's oil and gas production increased by 9.9% year-on-year to 180 million barrels of oil equivalent. China's domestic oil and gas production increased 6.9%, and overseas production increased 16.9%. The expected increase in CICC's production is mainly driven by early commissioning of the domestic Suizhong 36-1/Luda 5-2 oil field during the second adjustment period, as well as an increase in output from the Canadian oil sands project.
Looking ahead, CICC remains optimistic about CNOOC's production growth. It is expected that the annual production will exceed the 2024 guideline limit of 720 million barrels of oil equivalent. It also indicates that oil price fluctuations in the current and next two years may decrease, or hover at the level of 75 to 95 US dollars. The cyclical impact is expected to ease. The company's outlook visibility is expected to increase. Accordingly, the profit forecast for this year and next two years will increase by 8%, and the target price will rise 9% to HK$24, with a rating of “outperforming the industry”.