Jefferies published a report covering CNOOC Oilfield services for the first time, giving it a “buy” rating. The target price for H shares is HK$11 and the target price for A shares is HK$18. The target price for A-shares is based on predicting a ratio of about 7.7 times corporate value to EBITDA in 2027 mixed with the equivalent weight of cash flow discounting; the target price for H shares is based on a 47% discount compared to A-shares. The bank believes that the market has underestimated the sustainability of the offshore upward cycle and continues to regard CNOOC Oilfield Services as a drilling company even as its oilfield service-led profit model continues to grow. Investments driven by deep-water growth and liquefied natural gas support offshore spending. Coupled with the company's immunity to fluctuations in the Middle East, strong equipment utilization, and free cash flow generation capacity, it has become a structured offshore investment target.

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