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CNOOC LIMITED

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Delayed Hong Kong Stock Exchange  -  04:08 2022-07-06 am EDT
9.900 HKD   -4.81%
06:09aHong Kong Hang Seng Down 1.2% as Property, Tech and Oil Issues Slip
MT
06/30China BlueChemical to Buy Oil Refiner From Parent CNOOC For $195 Million
MT
06/30CNOOC to Boost New-Energy Investments to Achieve Carbon Neutrality by 2050
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China oil giant CNOOC soars in Shanghai debut, defies weak market

04/20/2022 | 10:08pm EDT
China National Offshore Oil Corp (CNOOC) headquarters  in Beijing

SHANGHAI, April 21 (Reuters) - CNOOC Ltd shares surged as much as 44% in their Shanghai debut on Thursday, defying broad market weakness, as investors sought safety in the Chinese oil giant amid high energy prices and quickening inflation.

After opening 20% higher, CNOOC shares immediately shot up 44% on the Shanghai Stock Exchange, hitting a price ceiling for the day and triggering a 30-minute trading halt. The stock ended the session up 27.7%.

It marked a bright spot in a bleak Shanghai market that slumped more than 2% amid COVID-19 lockdowns and geopolitical tensions.

"CNOOC is being chased by investors who are seeking shelter in big caps with relatively low valuation and high dividends," said Linus Yip, chief strategist at First Shanghai Group. "The stock also whets market appetite at a time when oil prices are climbing and inflation accelerating."

China's largest offshore oil producer raised 28.08 billion yuan ($4.41 billion) in the country's 11th-biggest public stock offering. It said it would use the proceeds to fund one gas and seven oilfield projects in China and overseas, and to replenish capital.

The Shanghai listing "is a key milestone in the company's history," CNOOC Chairman Wang Dongjin said in a statement.

CNOOC will fully exploit financing channels both home and abroad, to promote quality growth, and create value for shareholders, he added.

Chen Shuxian, an analyst at Cinda Securities, said in a note on Thursday that "CNOOC represents historic investment opportunities, thanks to high oil prices, low valuation, and consistently high dividend yields," adding the company's market cap has potential to double over the next few years.

CNOOC's Hong Kong-listed shares rose as much as 4.3% in early trading, but later swung to a loss of roughly 3%.

BEARISH MARKET

CNOOC starts trading in Shanghai against a backdrop of a downbeat stock market that has witnessed an increasing number of stocks falling below their initial public offering (IPO) prices.

A third of the roughly 100 companies which have listed this year in Shanghai and Shenzhen have fallen below their offer prices on debut, data from East Money Information show. Some, including chipmaker Vanchip Tianjin Technology Co Ltd and electronics firm Rigol Technologies Co Ltd , tumbled more than 30%.

Such debut performance - in sharp contrast with the first-day pop that once featured in China's stock markets - reflects the result of IPO reforms, as well bearish investor sentiment.

China's stock markets are the second worst performers globally this year after sanctions-hit Russia, as the economy grapples with COVID-19 flare-ups, the Ukraine crisis, and U.S. monetary tightening.

Yang Hongxun, an analyst at investment consultancy Shandong Shenguang, said many stocks that were deserted on debut are small caps with lofty valuations, whereas CNOOC was priced modestly.

In its Shanghai offering, CNOOC shares were priced at 10.8 yuan, 23.88 times earnings, or 1.05 times net assets.

The Shanghai sale came after CNOOC was delisted in October by the New York Stock Exchange after the U.S. government added the firm to a trade blacklist citing suspected connections to China's military. CNOOC said it had operated in accordance with local laws.

State-backed peers PetroChina Co Ltd and China Petroleum & Chemical Corp (Sinopec) are already listed in Shanghai. (Reporting by Jason Xue, Samuel Shen and Andrew Galbraith; editing by Christopher Cushing and Jason Neely)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
CNOOC LIMITED -4.81% 9.9 Delayed Quote.29.51%
LONDON BRENT OIL -4.29% 100.56 Delayed Quote.46.07%
ONE GAS, INC. 2.07% 80.935 Delayed Quote.2.20%
PETROCHINA COMPANY LIMITED -4.31% 3.55 Delayed Quote.6.92%
SHANGHAI A INDEX -1.43% 3516.65 Real-time Quote.-6.47%
SHANGHAI STOCK EXCHANGE B SHARES INDEX -1.50% 305.5844 Real-time Quote.8.53%
UNITED PARCEL SERVICE INC 0.52% 185.64 Delayed Quote.-13.86%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) -0.81% 61.25 Delayed Quote.-24.94%
WTI -2.85% 98.638 Delayed Quote.46.49%
All news about CNOOC LIMITED
06:09aHong Kong Hang Seng Down 1.2% as Property, Tech and Oil Issues Slip
MT
06/30China BlueChemical to Buy Oil Refiner From Parent CNOOC For $195 Million
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06/30CNOOC to Boost New-Energy Investments to Achieve Carbon Neutrality by 2050
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06/28China Slashes Retail Fuel Prices From Wednesday
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06/22Brazil's Petrobras buys first cargo of Guyanese crude for refining
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06/15CNOOC Completes China’s First Offshore Carbon Capture Project
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06/14China's CNOOC completes first offshore carbon capture site
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06/14China Raises Retail Fuel Prices From Wednesday
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06/09Hong Kong Stocks Retreat from Two-Month High; CNOOC Gains as Oil Prices Rise
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Financials
Sales 2022 353 B 52 650 M 52 650 M
Net income 2022 116 B 17 350 M 17 350 M
Net Debt 2022 102 B 15 260 M 15 260 M
P/E ratio 2022 3,37x
Yield 2022 11,4%
Capitalization 403 B 60 102 M 60 102 M
EV / Sales 2022 1,43x
EV / Sales 2023 1,33x
Nbr of Employees 18 887
Free-Float 34,8%
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Mean consensus BUY
Number of Analysts 20
Last Close Price 8,46 CNY
Average target price 12,07 CNY
Spread / Average Target 42,6%
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Managers and Directors
Xin Huai Zhou Chief Executive Officer & Executive Director
Qing Long Xia President & Executive Director
Wei Zhi Xie Chief Financial Officer
Dong Jin Wang Chairman
Xiaonan Wu Joint Secretary & Compliance Officer
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