[ET Net News Agency, 18 July 2019] Goldman Sachs lifted its target price for CNOOC
(00883) by 1% to HK$16.6 to reflect the better mid- to long-term productivity from
Stabroek block and maintained its "buy" rating.
The research house said CNOOC trades on 2019 FCF yield of 6.8% and can provide with a
decent dividend yield of 5.1%/5.3% in 2019/20.
Goldman said the combination of increased government focus on domestic China E&P
activities (to help contain import dependence in both oil & gas/LNG) along with a strong
pipeline of international development projects should enable CNOOC to deliver strong
3-year production CAGR of 4.9% with a low-cost structure maintained.
The Stabroek block represents 9%/16% of CNOOC's production in 2025/30 respectively,
Goldman added. (KL)