Cnooc Surges 4% On Penglai Oilfield News
Cnooc (ADR:CEO, Hong Kong stock code 0883) surges 3.98% to HK$16.18 (ADR $208.49), some distance away from its 50-day moving average at HK$16.81, getting a fillip from news that it has confirmed the size of a crude-oil deposit at its Penglai 9-1 field, which is now being confirmed as a large-scale oilfield. Bargain-hunting interest is perhaps also being reinforced by the stock’s rather undemanding valuations, at 8.4X prospective consensus earnings based on Thomson Reuters. GuocoCapital says Cnooc will release its 1Q12 operational update on Apr. 25 which “may trigger a consensus profit upgrades.” It adds, for every US$1/bbl increase in crude prices, Cnooc’s EPS will increase by 1.2%.