UBS released a research report stating that CNOOC (00883) reported a net profit of RMB102 billion for the first three quarters, down 12.6% year-on-year. The third-quarter net profit stood at RMB32.4 billion, declining 12.2% year-on-year and 1.6% quarter-on-quarter, in line with the bank's expectations. Oil and gas output for the first three quarters rose 6.7% year-on-year to 578.3 million barrels of oil equivalent, with natural gas production up 11.6% year-on-year. The cost per barrel remained stable at $27.35. The realized oil price for the first three quarters and Q3 fell 13.6% and 12.8% year-on-year, respectively, slightly less than the decline in Brent crude prices. Natural gas prices remained stable, increasing 1% and 0.6% year-on-year for the first three quarters and Q3, respectively. UBS maintained a "Buy" rating and a target price of HK$26.5.