CNOOC shares jumped to a two-week high after China’s state-controlled offshore oil and gas explorer handed shareholders an almost HK$56 billion (US$7.1 billion) dividend windfall after a bumper earnings. JPMorgan and Credit Suisse raised their stock price targets. The firm proposed to pay HK$1.18 per share in special dividends to holders of its local and yuan-denominated shares, according to an exchange filing on Thursday. Earnings jumped 132 per cent in the first quarter to 34.3 billion yuan (US$5.2 billion) as crude oil prices surged, it added. CNOOC shares advanced 3.5 per cent to HK$11.22 on Friday, adding to a 40 per cent rally this year. They soared 10 per cent to 17.01 yuan in Shanghai, a record high since its April 21 listing following a US$4.4 billion domestic stock offering. “CNOOC’s dividend yield is now at record high, which is also relatively higher than its domestic and foreign peers, highlighting the company’s investment value,” Chen Shuxian, analyst at Cinda Securities, said in a report recommending a buy on the stock. CNOOC has 44.6 billion shares outstanding in Hong Kong. It sold 2.6 billion shares to public investors in its Shanghai stock offering, a stake amounting to about 5.5 per cent of its total yuan-denominated shares. CNOOC said it achieved a 65 per cent gain in average oil prices last quarter from a year earlier, according to its report card. The average realised gas price was US$8.35 per thousand cubic feet, representing an increase of 24 per cent in tight market conditions. The windfall follows the firm’s decision in January to pay out at least 40 per cent of its annual profits from 2022 to 2024 as dividends, or at least HK$0.70 per share. The firm also reiterated its decision to implement share buy-backs this year. Brokers including JP Morgan and Credit Suisse on Thursday lifted their price targets for Hong Kong-listed shares. The 12-month target price now stands at HK$15.12 on average, signalling a 35 per cent upside from current levels, according to Bloomberg data. Stronger energy prices have boosted earnings of Chinese oil companies this quarter, due to supply disruptions caused by Russia’s invasion of Ukraine. Brent surged 29 per cent this year, hitting a decade high in March at almost U$125 a barrel. Sinopec’s net income jumped 27 per cent in the first quarter, the Chinese oil refiner and fuel producer said on Thursday. Its shares rose 0.3 per cent to HK$3.89 on Friday. PetroChina reported on Friday a 41 per cent growth in first quarter net profit, with its stock appreciating 0.8 per cent to HK$3.80. Separately, CNOOC said chief executive Xu Keqiang will step down after three years at the helm. He will be replaced by Zhou Xinhuai, former chairman and general manager of its subsidiary Hainan Energy Co. The firm also said it has not taken specific actions towards on Russian assets that Western energy groups are exiting. Media reports emerged last week that energy giant Shell was in talks with Chinese oil companies to sell its stake in a major Russia gas project. The company said on Thursday it was monitoring the situation, but had no plans yet, adding that an Russian exit from major oil firms would require Moscow’s approval. Additional reporting by Zhang Shidong