The Event
　　According to its positive earnings alert, CNOOC Limited (883 HK/HK$10.80, BUY) expects its 2022 earnings to be between RMB139.6bn and RMB143.6bn under CAS, up 99%-104% YoY.
　　The strong earnings growth was mainly due to the sharp rise in average oil price in 2022.
　　Our Take
　　The company’s guided full year earnings are 2.6%-5.6% higher than our forecast (as well as market consensus).
　　In particular, the company is looking at a net profit of RMB30.8bn-RMB34.8bn in 4Q22, 13%-28% higher than our forecasts.
　　We believe the discrepancy mainly comes from the higher-than-expected realised oil price and / or gas price and /or lower-than-expected cost.
　　The higher-than-expected guided net profit is a positive news. We reiterate our BUY call on CNOOC Limited with target price at HK$14.13.