CNOOC ADR Representing 100 Ord Shs (CEO)

[eFinanceMarkets]

Cnooc's wider disclosure about reserve base seen as positive, analysts say
Cnooc's (CEO +0.7%) more-detailed disclosure about its reserve base, released during yesterday's earnings presentation, is a positive sign for the company's long-term outlook even after reporting weak 2016 results, analysts say.
“This new information will alleviate investors’ concerns on Cnooc’s relatively low reserve life, which we see as a material long-term positive catalyst,” says Morgan Stanley's Andy Meng, adding that he also likes the “generous" dividend payout and impressive cost control.
The company previously took a conservative approach to reserves booking under SEC guidelines, but yesterday it provided the first look under Society of Petroleum Engineers standards, which shows reserves may be at least twice as large, Bernstein's Neil Beveridge says.