UBS: Raises CNOOC (00883) target price to HK$37.8, maintains "Buy" rating

UBS released a research report stating that CNOOC (00883) saw a year-on-year revenue decline of 5.3% last year, with a net profit drop of 11.5%, roughly in line with the bank's expectations. The net profit in the fourth quarter of last year fell by 5.5% year-on-year and by 38% quarter-on-quarter, mainly due to the reflection of oil price corrections and confirmation of asset impairment losses during the period. Management has indicated that reserves and production capacity enhancement, as well as cost control, remain core strategies for the future. In response to the recent Iran conflict, the bank has raised its average Brent oil price forecast for 2026 and 2027 to $86 and $80 per barrel, respectively. Based on the new oil price forecast and guidance from CNOOC, the company's earnings forecast for 2026 and 2027 has been raised by 17% to 21%, with the target price raised from HK$33.6 to HK$37.8, and a "buy" rating maintained.