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CEO (NYSE) Energy Sector Evan Farber/Brendan McMenamin Brian Boyd Jacek Kornas Adam Sheetz Gautam Shringapure. China National Offshore Oil Company. Snapshot Slide. Our target price is: $33.50 Appropriate purchase price: $26 Size: 10.6 B Beta: NA Dividend: .88/share. - PowerPoint PPT Presentation
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CEO (NYSE)Energy Sector
Evan Farber/Brendan McMenaminBrian Boyd
Jacek KornasAdam Sheetz
Gautam Shringapure
China National Offshore Oil Company
Snapshot Slide► Our target price is: $33.50► Appropriate purchase price: $26► Size: 10.6 B► Beta: NA► Dividend: .88/share
Company Description► CNOOC Limited is an oil & gas
company (headquarters in Hong Kong) focused on exploration, development and production offshore China.
► Incorporated in 1982 to conduct exploration and production in China's offshore areas, both independently and as the exclusive Chinese partner for foreign entities.
Management► Liucheng Wei Chairman, CEO► Shouwei Zhou Pres, Director► Mark Qui, Ph.D. CFO, Sr. VP► Ke Ru Exec. VP► Yunshi Cao Sr. VP, Gen. Counsel,
Sec.
Competitive Landscape► Three main oil & gas companies in China:
► China National Petroleum Corporation (CNPC),
► China National Petrochemical Corporation (Sinopec)
► CNOOC - Are the dominant offshore petroleum company, the second largest natural gas company and the third largest petroleum company in China.
► Foreign outsiders – Have to go through CNOOC, though
Key Advantages► Largest Offshore exploration of oil &
natural gas in China
► Dominant producer of crude oil & natural gas and only company permitted to conduct exploration and production with international oil & gas companies offshore China.
Company Goals► Increase production through the
development of undeveloped reserves► Add to their reserves through a
balance of independent exploration and production sharing contracts
► Capitalize on growing demand for natural gas in China
► Continue to improve operational efficiencies and lower production costs through the utilization of technology.
Current News► Japan's largest oil refiner Nippon Oil Corp
bought the 1st export cargo of Chinese Wenchang oil
► The Wenchang project, an offshore oil field, is 60 % owned by CNOOC Ltd, with Canadian Husky Energy Inc holding 40%.
► As well, partners with Phillips on oilfield NW of Bohai Sea, China’s 2nd largest oilfield
► Plans to build its first refinery with Royal Dutch/Shell.
► Build chemicals plant in Huizhou with RD/Shell► It has also signed an oil exploration contract
with CPC of Taiwan.
Financial Ratios► Market Cap: 10,661,990,000 ► Daily Volume: 60,000► Dividend: $0.88► 52-Week High: $30.66► 52-Week Low: $17.35► EPS: 2.04 TTM► 1yr Projected EPS: 2.71
Financial RatiosCompany Industry Sector S&P 500
Gross Margin 85.37 49.25 35.90 47.47
Profit Margin 34.42 1.70 4.72 10.40
ROA 14.49 0.95 4.28 6.42
ROE 20.83 2.00 7.17 18.31
ROI 16.29 1.08 5.37 10.28
Financial RatiosCEO Sinopec Sector S&P 500
Current Ratio
4.75 .084 1.29 1.64
Quick Ratio 4.30 0.29 0.88 1.11
LT Debt to Equity
0.19 0.16 0.44 0.74
Total Debt to Equity
0.19 0.25 0.51 0.98
Free Cash Flow
380.3M -889.0M _ _
Financial RatiosCompany Industry Sector S&P 500
P/E 12.40 37.69 27.98 24.74
Price to Free Cash Flow
9.05 9.47 11.48 17.64
Dividend Yield
4.06 2.70 2.82 2.19
Why Should PSIA Invest Now?► China’s joining of the WTO marks
opening of huge market, particularly for auto industry which is set to explode!
► As well, taking advantage of newly open markets in Japan & E. Asia
► Want to diversify the PSIA portfolio with ADR (foreign investment)
Stock Chart
Team Recommendation► Our Target Price: $33.50
► Appropriate Purchase Price: $26-27
► Buy now!
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