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 with proven track record and pays a dividend.


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

-2.8%

883

-0.6%

HK Oil and Gas

-2.7%

HK Market


1 Year Return

-12.7%

883

-26.8%

HK Oil and Gas

-9.4%

HK Market

883 outperformed the Oil and Gas industry which returned -26.8% over the past year.

883 underperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

883IndustryMarket
7 Day-2.8%-0.6%-2.7%
30 Day8.4%7.3%2.0%
90 Day-6.3%-6.0%-5.8%
1 Year-7.3%-12.7%-22.5%-26.8%-6.1%-9.4%
3 Year56.4%34.4%9.8%-5.8%14.3%2.7%
5 Year16.7%-8.4%-31.5%-43.7%16.7%-2.8%

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 based on future cash flows and its price relative to the stock market?

33%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CNOOC's share price is below the future cash flow value, and at a moderate discount (> 20%).

CNOOC's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

CNOOC is overvalued based on earnings compared to the HK Oil and Gas industry average.

CNOOC is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

CNOOC is poor value based on expected growth next year.


Price Based on Value of Assets

CNOOC is overvalued based on assets compared to the HK Oil and Gas industry average.


Next Steps

Future Growth

How is CNOOC expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CNOOC's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

CNOOC's earnings are expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

CNOOC's revenue growth is positive but not above the Hong Kong market average.

CNOOC's earnings growth is positive but not above the Hong Kong market average.

CNOOC's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

CNOOC is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

CNOOC's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

CNOOC's 1-year earnings growth exceeds its 5-year average (69.5% vs -0.7%)

CNOOC's earnings growth has exceeded the HK Oil and Gas industry average in the past year (69.5% vs 11.7%).


Return on Equity

CNOOC has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CNOOC used its assets more efficiently than the HK Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

CNOOC has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is CNOOC's financial position?


Financial Position Analysis

CNOOC is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CNOOC's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

CNOOC's level of debt (32.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (36.5% vs 32.5% today).

Debt is well covered by operating cash flow (88.2%, greater than 20% of total debt).

CNOOC earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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

5.86%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CNOOC's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

CNOOC's dividend is below the markets top 25% of dividend payers in Hong Kong (6.17%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

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


Management Age and Tenure

2.5yrs

Average Tenure

53yo

Average Age

The tenure for the CNOOC management team is about average.


Board Age and Tenure

8.3yrs

Average Tenure

67.5yo

Average Age

The tenure for the CNOOC board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Guohua Zhang (59yo)

    Senior Vice President

    • Tenure: 13.9yrs
  • May Tsue (46yo)

    Joint Company Secretary

    • Tenure: 10.8yrs
  • Weizhi Xie (55yo)

    Chief Financial Officer

    • Tenure: 2.1yrs
  • Yuhong Xie (58yo)

    Executive VP & Chief Safety Officer

    • Tenure: 3.3yrs
  • Keqiang Xu (48yo)

    President & Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥841.00k
  • Xinjian Cao (53yo)

    Executive Vice President

    • Tenure: 2.5yrs
  • Jing Liu

    Manager of Media & Public Relations

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

    General Counsel

    • Tenure: 1.1yrs

Board Members

  • Sung Hong Chiu (72yo)

    Independent Non-Executive Director

    • Tenure: 20yrs
    • Compensation: CN¥972.00k
  • Lawrence Lau (75yo)

    Independent Non-Executive Director

    • Tenure: 14.1yrs
    • 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: 0.3yrs
  • Dongjin Wang (57yo)

    Vice Chairman

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

    President & Executive Director

    • Tenure: 2.4yrs
    • 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$561.665b
  • 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
CEOH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1999
883SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 1999
NC2BDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 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
CEONYSE (New York Stock Exchange)ADS EACH REP 100 ORD HKD0.02USUSDFeb 2001
NC2ADB (Deutsche Boerse AG)ADS EACH REP 100 ORD HKD0.02DEEURFeb 2001
CEO NBMV (Bolsa Mexicana de Valores)ADS EACH REP 100 ORD HKD0.02MXMXNFeb 2001
CNUTSX (The Toronto Stock Exchange)ADS EACH REP 100 ORD HKD0.02CACADFeb 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 Analysis2019/09/23 12:30
End of Day Share Price2019/09/23 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.