CNOOC's first-quarter performance aligned with forecasts, reporting a net profit of RMB 39.2 billion, a 7% year-on-year increase, primarily driven by a 4.5% rise in oil prices. Total output during the period grew 8.6% annually to 205 million barrels of oil equivalent. Domestic and overseas production increased by 7% and 12.2% respectively, meeting management's full-year production guidance of 780 to 800 million barrels of oil equivalent, with the first quarter accounting for approximately 25.6% to 26.3% of the target. The company has maintained its annual production goal, with management having factored in planned maintenance and seasonal typhoon risks. The management reaffirmed its strategy of prioritizing high-value exploration, steadily increasing output, and strictly controlling costs. Given CNOOC's impressive production growth rate and strong growth outlook, a Buy rating is maintained, with a target price of HK$33.