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CNOOC Limited (0883.HK)

China's Offshore Oil & Gas Champion — Quick Take

📅 29 Aug 2026 EnergyOil & GasHKEXChinaDividendLarge Cap
Market Cap
~$150B
Revenue (FY25)
$57.6B
P/E (TTM)
~7.7x
H1'26 Profit
+23.4%

Why This Company Now

CNOOC surfaced in the daily financial summary ("CNOOC posts record profit as China boosts domestic oil output") on the back of its H1 2026 interim results (26 Aug), which set all-time interim highs for both production and profit. Net profit attributable to shareholders rose 23.4% YoY to RMB 85.8B (~$12.9B) on a 20% jump in oil & gas sales revenue, with oil prices elevated by the Iran / Strait of Hormuz crisis. The Energy theme also shows up in the latest US VolumeSurge screener (CVI +5.0%), and CNOOC — China's largest offshore oil & gas producer at ~$150B market cap — has not been covered in this tracker's history.

Financial Snapshot

YearRevenue (RMB B)Rev GrowthNet Profit (RMB B)Net Margin
FY2022422.3—141.733.6%
FY2023416.6-1.3%123.829.7%
FY2024420.5+0.9%137.932.8%
FY2025398.2-5.3%122.130.7%
H1 2026206.1*+20.0%85.841.6%

*H1 2026 figure is oil & gas sales revenue. H1 2026 net production 398.7M BOE (+3.7% YoY); all-in cost US$29.7/BOE; interim dividend HK$0.94/share (~RMB 38.8B payout). FY2025 production 777.3M BOE (+7%), proved reserves 7.77B BOE (+6.9%), annual dividend HK$1.28/share (45% payout).

Bull vs Bear

✅ Bull Case

  • Record interim profit (RMB 85.8B, +23.4%) on a world-leading all-in cost of just US$29.7/BOE — a cost curve that keeps CNOOC profitable even if crude retreats.
  • Structural tailwind: China's energy-security push to lift domestic output, plus elevated oil prices from the Iran / Strait of Hormuz crisis supporting near-term cash flow.
  • Cheap + shareholder-friendly: ~7.7x trailing P/E and ~5.5% dividend yield, with record 7.77B BOE proved reserves (+6.9%) underpinning the resource base.

🔴 Bear Case

  • Pure commodity exposure — FY2025 net profit fell 11.5% despite record output when oil softened; earnings are hostage to the crude price cycle.
  • State-owned & geopolitically exposed: sensitivity to China policy, Western sanctions/ESG pressure on oil majors, and gas price controls outside the high-value offshore China base.
  • Growth is decelerating (H1 production +3.7% vs +7% in FY2025) while capex stays elevated and the natural decline rate (~9.5%) must be fought with heavy drilling.

Verdict

CNOOC is a low-cost, cash-generative energy giant trading at a single-digit multiple with a ~5.5% yield, now printing record interim profits on elevated oil prices and China's domestic-output drive. The risk is entirely the oil price cycle and state-ownership overhang — 2025 already showed how quickly profit deflates when crude softens. Interesting here as a high-yield energy-security exposure, but only for holders comfortable riding crude volatility.

Disclaimer: AI-generated quick take for informational purposes only. Not investment advice. Data from public filings and financial data providers.