Bulletin: Rating On CNOOC Ltd. Not Affected By 2017 Results, Credit Metrics Likely To Remain Stable - S&P Global Ratings’ Credit Research

Bulletin: Rating On CNOOC Ltd. Not Affected By 2017 Results, Credit Metrics Likely To Remain Stable

Bulletin: Rating On CNOOC Ltd. Not Affected By 2017 Results, Credit Metrics Likely To Remain Stable - S&P Global Ratings’ Credit Research
Bulletin: Rating On CNOOC Ltd. Not Affected By 2017 Results, Credit Metrics Likely To Remain Stable
Published Apr 02, 2018
3 pages (1043 words) — Published Apr 02, 2018
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Abstract:

HONG KONG (S&P Global Ratings) April 3, 2018--S&P Global Ratings today said that its issuer credit rating on CNOOC Ltd. (A+/Stable/--) is not affected by the company's 2017 results. The results were in line with our expectations. CNOOC Ltd.'s debt-to-EBITDA ratio improved to 1.0x in 2017, from 1.5x in 2016. The improvement was slightly faster than our expectation due to increased production. The company's operating cash flow rose mainly due to higher oil prices while cash costs remained flat. CNOOC Ltd.'s total debt fell to Chinese renminbi (RMB) 132 billion at end-2017 from RMB150 billion at end-2016 and its total cash (including time deposits and wealth management products) rose to RMB102 billion from RMB83 billion over the period. We expect

  
Brief Excerpt:

...HONG KONG (S&P Global Ratings) April 3, 2018--S&P Global Ratings today said that its issuer credit rating on CNOOC Ltd. (A+/Stable/--) is not affected by the company's 2017 results. The results were in line with our expectations. CNOOC Ltd.'s debt-to-EBITDA ratio improved to 1.0x in 2017, from 1.5x in 2016. The improvement was slightly faster than our expectation due to increased production. The company's operating cash flow rose mainly due to higher oil prices while cash costs remained flat. CNOOC Ltd.'s total debt fell to Chinese renminbi (RMB) 132 billion at end-2017 from RMB150 billion at end-2016 and its total cash (including time deposits and wealth management products) rose to RMB102 billion from RMB83 billion over the period. We expect CNOOC Ltd.'s credit metrics to remain stable in the next two to three years owing to flattish oil prices and a moderate increase in operating expenses. Management guidance of 2018 capital expenditure of RMB70 billion-RMB80 billion is significant higher...

  
Report Type:

Bulletin

Ticker
883@HK
Issuer
CNOOC Ltd.
GICS
Oil & Gas Exploration & Production (10102020)
Sector
Global Issuers
Country
Hong Kong
Region
Latin America
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Rating On CNOOC Ltd. Not Affected By 2017 Results, Credit Metrics Likely To Remain Stable" Apr 02, 2018. Alacra Store. May 21, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Rating-On-CNOOC-Ltd-Not-Affected-By-2017-Results-Credit-Metrics-Likely-To-Remain-Stable-2015442>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Rating On CNOOC Ltd. Not Affected By 2017 Results, Credit Metrics Likely To Remain Stable Apr 02, 2018. New York, NY: Alacra Store. Retrieved May 21, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Rating-On-CNOOC-Ltd-Not-Affected-By-2017-Results-Credit-Metrics-Likely-To-Remain-Stable-2015442>
  
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