The Zhitong Finance App learned that Morgan Stanley released a research report saying that the third quarter results of CNOOC Oilfield Services (02883) fell short of market expectations, and there was limited room for profit increases. The bank maintained a “synchronized with the market” rating of H shares and a target price of HK$8, while A-shares maintained a “reduced holdings” rating.

CNOOC Oilfield Services (02883) (601808.SH)'s third-quarter earnings per share were generally in line with the forecast, but fell short of market expectations, reinforcing the bank's view that even if energy prices were high, there was still limited room for profit growth due to limited drilling rig usage and limited operating leverage. CNOOC's downsizing capital expenditure cycle is still a major concern, and may drag down more complex drilling activities and demand for high-value oil wells.

According to the bank, CNOOC's revenue for the first nine months was RMB 35.73 billion, up 2.5% year on year, and shareholders should account for net profit of RMB 3.23 billion, up 0.7% year on year, compared with market expectations of 17% year on year. The bank expects the market to lower its profit forecast in the coming months.

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