UBS released a research report stating that CNOOC (00883) reported a 13% year-on-year decline in net profit to RMB 69.5 billion for the first half of the year, with second-quarter net profit falling 18% year-on-year to RMB 33 billion, which exceeded expectations. The profit decline was smaller than the oil price decline due to increased oil and gas production and continued cost reductions per barrel.

The firm slightly raised the company's earnings forecasts for 2025-2027, upgrading the target price from HK$26 to HK$26.5, with a "Buy" rating. UBS noted that CNOOC maintains its full-year production target of 760-780 million barrels of oil equivalent, with planned capital expenditures of RMB 125-135 billion.

Looking at the medium to long term, management expects capital expenditures to grow steadily to sustain annual increases in oil and gas production and develop new energy businesses.