China News Service, Hong Kong, April 3 (Reporter Dai Xiaolu) Recently, oil and gas stocks have been increasingly active. Many well-known investment banks and asset management companies have released research reports pointing out that China National Offshore Oil Corporation (CNOOC), China Petroleum & Chemical Corporation The company (Sinopec) and China National Petroleum Corporation (CNPC) (commonly known as the "three barrels of oil") will present a more attractive investment value in the market.
So far, "Three Barrels of Oil" has all announced its 2023 performance in Hong Kong, and its dividend performance throughout the year has been excellent. PetroChina stated that it plans to distribute a 2023 final dividend of RMB 0.23 per share (tax included) to all shareholders, with a total cash dividend of approximately RMB 42.095 billion. Sinopec pointed out that it will distribute a cash dividend of RMB 0.345 per share (tax included) for the whole year of 2023. Adding the repurchase amount, after combined calculation, the full-year dividend payment ratio will reach 75%. CNOOC plans to distribute a 2023 final dividend of HK$0.66 per share (tax included) to all shareholders. Together with the already distributed interim dividend of HK$0.59 per share (tax included), the 2023 final dividend and interim dividend total HK$1.25 per share (tax included). .
"Three Barrels of Oil"'s high dividend payments have further enhanced investors' confidence in its future development.
In the latest research report released this month, Goldman Sachs raised the target price of "Three Barrels of Oil" and gave a very positive evaluation of the future prospects of these three companies. Goldman Sachs mentioned that it is particularly optimistic about the share price performance of PetroChina and CNOOC as cash flow translates into strong dividends and potential share repurchase plans. Goldman Sachs said that if oil prices remain at US$80 per barrel, PetroChina will become an ideal choice for long-term investors, and this price level is expected to continue until 2025.
A research report from China Construction Bank International (Holdings) Co., Ltd. (CCB International) pointed out that CNOOC's net profit fell nearly 13% year-on-year last year, and its performance was slightly worse than market expectations. It is believed to be mainly affected by the correction in oil prices. However, CNOOC's production is stable and its costs are under control. Its unit production cost decreased by 3% year-on-year to US$7.7 per barrel, which was better than CCB International's expectation of US$8.13 per barrel. CCB International said CNOOC's valuation is attractive, so it maintained its rating as "outperform" and raised its target price.
Bank of China International Holdings Limited (BOCI) mentioned in a research report that PetroChina's profit last year increased by about 8% year-on-year to 161.15 billion yuan, which was about 4% higher than the bank's forecast. Despite a sharp drop in oil prices, PetroChina grew on the strength of its natural gas marketing business. Bank of China International predicts that PetroChina's earnings will increase by 17% year-on-year in 2024, so it gave a "buy" rating and raised its target price. At the same time, Bank of China International also reiterated its "buy" rating on Sinopec.
Qunyi Securities (Hong Kong) Co., Ltd. (Qunyi Securities) gave PetroChina an overweight rating in the research report "Profits Go to New Highs Against the Trend, Continue High Dividend Policy". Qunyi Securities stated that PetroChina’s profits have achieved growth against the trend against the backdrop of falling crude oil prices, highlighting the stability of its operations. Qunyi Securities predicts that crude oil prices will still fluctuate at high levels in 2024, and believes that PetroChina’s performance growth is guaranteed. (over)