[ET Net News Agency, 20 August 2020] Morgan Stanley raised its target price for CNOOC
(00883) to HK$10.6 from HK$9.74 and maintained its "overweight" rating.
The research house said CNOOC has further reduced its all-in cost from US$29.0/bbl in 1H
2019 to US$25.7/bbl in 1H 2020. This comes as a positive surprise. Such control over costs
also demonstrates CNOOC management's execution capability.
With such a low cost profile, Morgan believes CNOOC is well positioned to get back to
growth, in line with its strategy, even amid a low oil price environment. It views the
all-in cost as the foundation of an attractive dividend. Morgan raised its earnings
forecasts 21% each for 2020 and 2021 and 34% for 2022. (KL)