Dongxing Securities: CNOOC Service's Q1 performance exceeds expectations, rating "strongly recommended"

Dongxing Securities research report pointed out that CNOOC as a leading global comprehensive offshore oilfield service provider, is expected to achieve steady performance growth by 2024, with first quarter performance in 2025 exceeding expectations. The net profit attributable to the parent company has seen breakthroughs in oilfield technology services, highlighting its growth potential in this cycle. The drilling sector is benefiting significantly from domestic energy security policies, with a higher business outlook than foreign oilfield service companies. Looking ahead, leveraging strong support from major customer CNOOC in its domestic business, the company is expected to maintain good growth in oilfield technology services through technological breakthroughs and import substitution under the dual driving forces of deepwater exploration and technology services. The company's net profit attributable to the parent company is expected to be 4.729 billion yuan in 2025, 5.859 billion yuan in 2026, and 7.487 billion yuan in 2027, corresponding to earnings per share of 0.99 yuan, 1.24 yuan, and 1.57 yuan respectively. A "strong buy" rating is recommended.