Cnooc Limited (CEO) continues to develop the South China sea, driving projections higher. Analysts are expecting earnings to grow at a break-neck pace.
Production Increasing
On Oct 29 the Cnooc reported quarterly results that showed an 18% increase in daily production to almost 650,000 barrels of oil equivalent.
Discoveries
Cnooc continues to report new finds, the latest is a deepwater gas find in the South China sea. This the company’s second significant find in the area.
Mr. Zhu Weilin, EVP, said, “We are excited about the new deepwater discovery LH34-2, which further demonstrates the huge potential in the deepwater area in South China Sea.”
Estimates Rising
Full-year estimates for 2009 are up 36 cents, to $9.99, for 2009. Next year’s projections are averaging $14.47, up from $13.30. Comparing these levels to the 14 cents earned in 2008 and you have earnings increasing more than 100 times over a 2-year period.
The Chart
A recent sell off, coupled with increasing estimates has left shares trading at solid valuations. The forward P/E for Cnooc is about 10 times.
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Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader serviceZacks Investment Research
