SEHK:883

Stock Analysis Report

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Executive Summary

CNOOC Limited, an investment holding company, explores for, develops, produces, and sells crude oil and natural gas in offshore China, Canada, the United States, the United Kingdom, Nigeria, Argentina, Indonesia, Uganda, Iraq, Brazil, Guyana, Russia, Australia, and internationally. More Details


Snowflake Analysis

Excellent balance sheet established 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

Stable Share Price: 883 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

883

-1.6%

HK Oil and Gas

-2.6%

HK Market


1 Year Return

-36.7%

883

-34.0%

HK Oil and Gas

-0.3%

HK Market

Return vs Industry: 883 underperformed the Hong Kong Oil and Gas industry which returned -32.9% over the past year.

Return vs Market: 883 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

883IndustryMarket
7 Day-2.2%-1.6%-2.6%
30 Day-12.2%-6.9%-4.2%
90 Day-10.1%-4.2%0.7%
1 Year-32.0%-36.7%-30.3%-34.0%3.7%-0.3%
3 Year-4.8%-20.1%-31.8%-41.6%-5.1%-15.3%
5 Year38.0%6.3%-17.9%-33.3%25.0%4.0%

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?

46.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 883 (HK$7.91) is trading below our estimate of fair value (HK$14.66)

Significantly Below Fair Value: 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 (7.5x) compared to the HK Oil and Gas industry average (6.2x).

PE vs Market: 883 is good value based on its PE Ratio (7.5x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 883 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 883 is overvalued based on its PB Ratio (0.7x) compared to the HK Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 883's forecast earnings growth (26.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 883's earnings (26.1% per year) are forecast to grow faster than the Hong Kong market (22.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 883's revenue (13% per year) is forecast to grow slower than the Hong Kong market (13.1% per year).

High Growth Revenue: 883's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 883's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has CNOOC performed over the past 5 years?

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 883 has high quality earnings.

Growing Profit Margin: 883's current net profit margins (20.7%) are lower than last year (24.8%).


Past Earnings Growth Analysis

Earnings Trend: 883's earnings have grown significantly by 29.4% per year over the past 5 years.

Accelerating Growth: 883's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 883 had negative earnings growth (-28.5%) over the past year, making it difficult to compare to the Oil and Gas industry average (-5.9%).


Return on Equity

High ROE: 883's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is CNOOC's financial position?


Financial Position Analysis

Short Term Liabilities: 883's short term assets (CN¥188.9B) exceed its short term liabilities (CN¥94.6B).

Long Term Liabilities: 883's short term assets (CN¥188.9B) do not cover its long term liabilities (CN¥213.7B).


Debt to Equity History and Analysis

Debt Level: 883's debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: 883's debt to equity ratio has reduced from 38.8% to 31.6% over the past 5 years.

Debt Coverage: 883's debt is well covered by operating cash flow (71.2%).

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


Balance Sheet


Next Steps

Dividend

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

8.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 883's dividend (8.19%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 883's dividend (8.19%) is in the top 25% of dividend payers in the Hong Kong market (6.92%)


Stability and Growth of Payments

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 (64%), 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 covered by earnings (51.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Keqiang Xu (49 yo)

0.83

Tenure

CN¥1,313,000

Compensation

Mr. Keqiang Xu is a Director of China National Offshore Oil Corporation since 2020. He has been Executive President of China National Offshore Oil Corporation (CNOOC) since March 2017. Mr. Xu has been Exec ...


CEO Compensation Analysis

Compensation vs Market: Keqiang's total compensation ($USD193.67K) is below average for companies of similar size in the Hong Kong market ($USD805.77K).

Compensation vs Earnings: Keqiang's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Keqiang Xu
CEO & Executive Director0.83yrCN¥1.31mno data
Guangjie Hu
President & Executive Director0.50yrno datano data
Weizhi Xie
Chief Financial Officer3.08yrsno datano data
Xiaonan Wu
General Counsel2.08yrsno datano data
Jing Liu
Manager of Media & Public Relationsno datano datano data
Yuhong Xie
Executive VP & General Manager of Exploration Department4.33yrsno datano data
Xinjian Cao
Executive Vice President3.5yrsno datano data
Qinglong Xia
Executive Vice President0.50yrno datano data
Sik Yu Tsue
Joint Company Secretary11.83yrsno datano data

2.6yrs

Average Tenure

53.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Keqiang Xu
CEO & Executive Director0.83yrCN¥1.31mno data
Guangjie Hu
President & Executive Director0.50yrno datano data
Sung Hong Chiu
Independent Non-Executive Director21yrsCN¥985.00k0.0026%
CN¥ 9.1m
Juen-Yee Lau
Independent Non-Executive Director15.08yrsCN¥835.00k0.00090%
CN¥ 3.2m
Hau Yin Tse
Independent Non-Executive Director7.5yrsCN¥1.03mno data
Zhi Zhong Qiu
Independent Non-Executive Director1.33yrsCN¥543.00kno data
Dongjin Wang
Chairman of the Board0.83yrno datano data
Dongfen Wen
Non Executive Director0.42yrno datano data

2.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 883's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$353.161b
  • 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
0A2CLSE (London Stock Exchange)ADS EACH REP 100 ORD HKD0.02GBUSDFeb 2001

Biography

CNOOC Limited, an investment holding company, explores for, develops, produces, and sells crude oil and natural gas in offshore China, Canada, the United States, the United Kingdom, Nigeria, Argentina, Ind ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 19:16
End of Day Share Price2020/09/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.