Bulletin: CNOOC Ltd. Rating Not Affected By 2018 Interim Results; Credit Metrics In Line With Expectation

HONG KONG (S&P Global Ratings) Aug. 24, 2018--S&P Global Ratings today said the issuer credit rating on CNOOC Ltd. (A+/Stable/--) is not affected by the company's 2018 interim results, which are in line with our expectations. We expect CNOOC Ltd.'s ratio of debt to EBITDA will remain below 1x in 2018-2020, based on our declining oil price assumptions. We assume Brent crude to average US$65 per barrel for the rest of 2018, US$60 per barrel in 2019 and US$55 per barrel in 2020. We also assume CNOOC Ltd.'s total oil and gas production to grow by low single digit in the next two to three years, based on the company's three-year rolling production guidance. We have factored in annual capital

...HONG KONG (S&P Global Ratings) Aug. 24, 2018--S&P Global Ratings today said the issuer credit rating on CNOOC Ltd. (A+/Stable/--) is not affected by the company's 2018 interim results, which are in line with our expectations. We expect CNOOC Ltd.'s ratio of debt to EBITDA will remain below 1x in 2018-2020, based on our declining oil price assumptions. We assume Brent crude to average US$65 per barrel for the rest of 2018, US$60 per barrel in 2019 and US$55 per barrel in 2020. We also assume CNOOC Ltd.'s total oil and gas production to grow by low single digit in the next two to three years, based on the company's three-year rolling production guidance. We have factored in annual capital expenditure (capex) of Chinese renminbi (RMB) 80 billion and annual dividend of RMB18 billion. CNOOC Ltd.'s future production and capex could exceed our current forecasts. The Chinese government recently asked for higher investments in domestic oil and gas exploration and production by the three national...

Bulletin