SEHK:883

Stock Analysis Report

Executive Summary

CNOOC Limited, an investment holding company, explores for, develops, produces, and sells crude oil and natural gas.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has CNOOC's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

883

-1.6%

HK Oil and Gas

0.9%

HK Market


1 Year Return

-15.6%

883

-25.1%

HK Oil and Gas

0.6%

HK Market

Return vs Industry: 883 exceeded the Hong Kong Oil and Gas industry which returned -25.1% over the past year.

Return vs Market: 883 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

883IndustryMarket
7 Day-1.3%-1.6%0.9%
30 Day-5.6%-3.4%0.4%
90 Day-9.5%-7.3%-5.5%
1 Year-10.5%-15.6%-20.7%-25.1%4.2%0.6%
3 Year29.4%11.2%-2.4%-16.2%15.5%3.9%
5 Year21.7%-4.5%-28.9%-41.5%19.9%-0.1%

Price Volatility Vs. Market

How volatile is CNOOC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CNOOC undervalued compared to its fair value and its price relative to the market?

44.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 883 (HK$11.88) is trading below our estimate of fair value (HK$21.22)

Significantly Undervalued: 883 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 883 is poor value based on its PE Ratio (8.3x) compared to the Oil and Gas industry average (7x).

PE vs Market: 883 is good value based on its PE Ratio (8.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 883 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 883 is overvalued based on its PB Ratio (1.1x) compared to the HK Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is CNOOC forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 883's forecast earnings growth (6.2% per year) is above the savings rate (2%).

Earnings vs Market: 883's earnings (6.2% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 883's earnings are forecast to grow, but not significantly.

Revenue vs Market: 883's revenue (5.8% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 883's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 883's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has CNOOC performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 883's earnings have declined by -0.7% per year over the past 5 years.

Accelerating Growth: 883's earnings growth over the past year (69.5%) exceeds its 5-year average (-0.7% per year).

Earnings vs Industry: 883 earnings growth over the past year (69.5%) exceeded the Oil and Gas industry 12.6%.


Return on Equity

High ROE: 883's Return on Equity (13.3%) is considered low.


Return on Assets

ROA vs Industry: 883 has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: 883's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is CNOOC's financial position?


Financial Position Analysis

Short Term Liabilities: 883's short term assets (CN¥223.9B) exceeds its short term liabilities (CN¥101.2B)

Long Term Liabilities: 883's short term assets (223.9B) exceeds its long term liabilities (188.4B)


Debt to Equity History and Analysis

Debt Level: 883's debt to equity ratio (32.5%) is considered satisfactory

Reducing Debt: 883's debt to equity ratio has reduced from 36.5% to 32.5% over the past 5 years.

Debt Coverage: 883's debt is well covered by operating cash flow (88.2%).

Interest Coverage: 883 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 883 has a high level of physical assets or inventory.

Debt Coverage by Assets: 883's debt is covered by short term assets (assets are 1.598490x debt).


Next Steps

Dividend

What is CNOOC's current dividend yield, its reliability and sustainability?

6.13%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%2.3%markettop25%6.3%industryaverage6.2%forecastin3Years6.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 883's dividend (6.13%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 883's dividend (6.13%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 883's dividend payments have been volatile in the past 10 years.

Growing Dividend: 883's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.6%), 883's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 883's dividends in 3 years are forecast to be well covered by earnings (49% payout ratio).


Next Steps

Management

What is the CEO of CNOOC's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

CNOOC has no CEO, or we have no data on them.


Management Age and Tenure

2.6yrs

Average Tenure

53yo

Average Age

Experienced Management: 883's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 883's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Guohua Zhang (59yo)

    Senior Vice President

    • Tenure: 14yrs
  • May Tsue (46yo)

    Joint Company Secretary

    • Tenure: 10.9yrs
  • Weizhi Xie (55yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
  • Yuhong Xie (58yo)

    Executive VP & Chief Safety Officer

    • Tenure: 3.4yrs
  • Keqiang Xu (48yo)

    President & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥841.00k
  • Xinjian Cao (53yo)

    Executive Vice President

    • Tenure: 2.6yrs
  • Jing Liu

    Manager of Media & Public Relations

    • Tenure: 0yrs
  • Xiaonan Wu (52yo)

    General Counsel

    • Tenure: 1.2yrs

Board Members

  • Sung Hong Chiu (72yo)

    Independent Non-Executive Director

    • Tenure: 20.1yrs
    • Compensation: CN¥972.00k
  • Lawrence Lau (75yo)

    Independent Non-Executive Director

    • Tenure: 14.2yrs
    • Compensation: CN¥802.00k
  • Aloysius Tse (71yo)

    Independent Non-Executive Director

    • Tenure: 14.3yrs
    • Compensation: CN¥946.00k
  • Zhi Qiu (64yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs
  • Dongjin Wang (57yo)

    Vice Chairman

    • Tenure: 0.8yrs
  • Keqiang Xu (48yo)

    President & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥841.00k

Company Information

CNOOC Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CNOOC Limited
  • Ticker: 883
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: HK$530.412b
  • Shares outstanding: 44.65b
  • Website: https://www.cnoocltd.com

Number of Employees


Location

  • CNOOC Limited
  • Bank of China Tower
  • 65th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
883SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 1999
NC2BDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1999
CEOH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1999
883SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 1999
CNCSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFOct 1999
883SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 1999
CEO NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNFeb 2001
NC2ADB (Deutsche Boerse AG)SPONSORED ADRDEEURFeb 2001
CEONYSE (New York Stock Exchange)SPONSORED ADRUSUSDFeb 2001
CNUTSX (The Toronto Stock Exchange)SPONSORED ADRCACADFeb 2001
0A2CLSE (London Stock Exchange)SPONSORED ADRGBUSDFeb 2001

Biography

CNOOC Limited, an investment holding company, explores for, develops, produces, and sells crude oil and natural gas. The company operates through Exploration and Production, and Trading Business segments.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:30
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.