The Green Pivot: Key Second-Half Moves for Two Energy Giants

The traditional energy sector is seeing its most significant overhaul in recent years. I'm told that as we move into the second half of 2026, both upstream oil and gas giants and downstream power generators are aggressively pivoting their capital expenditures toward renewable energy and low-carbon infrastructure. The central government's strong push for a unified, modern power system is forcing these traditional powerhouses to reallocate resources at an unprecedented pace, rendering old valuation models obsolete.

CNOOC (0883.HK)

CNOOC has been on a strong run recently, posting a four-day winning streak in early July with cumulative gains topping 7.4%. While its Bohai oilfield hit a record 40 million tons of output in late 2025, I'm told the company's internal focus is quietly shifting toward offshore wind and "blue and green hydrogen." According to people familiar with the matter, CNOOC recently completed the initial design bidding for a massive offshore wind project in July 2026, which is slated to break ground later this year. Just late last month, executives held a special symposium in Zhuhai focusing on cost optimization for deep-sea wind power, signaling a transition from planning to execution.

At the same time, the floating production storage and offloading (FPSO) industry is entering a boom cycle as deep-sea exploration accelerates. With its bonded LNG bunkering surpassing 800,000 cubic meters in early July and a finalized 2025 A-share dividend of RMB 0.47881 per share, the cash cow is carefully striking a balance between its traditional dividend commitments and its clean energy ambitions.

China Power (2380.HK)

China Power is executing a massive restructuring of its own. Looking at its 2025 financials, wind power quietly overtook traditional thermal power, bringing in nearly RMB 530 million in net income compared to thermal's RMB 408 million, driving the company's total annual net profit to RMB 1.065 billion. With solar and energy storage also turning a profit, this marks a critical turning point for the traditional power generator.

I'm told that the company's late June 2026 announcement regarding the proposed placement of new shares and potential deemed disposal of its hydropower unit is viewed internally as a critical step in optimizing its asset portfolio. By early July, it had already moved on to secure major contracts for desulfurization systems. This signals a concerted effort to shed its high-carbon legacy as it aligns with the state's blueprint for a new, unified power system and electricity spot market.

Also

• Grid Upgrades: With the ongoing implementation of the optimization plan introduced by the NDRC earlier, expect more cross-provincial green power trading rules to emerge before the end of the year.
• Deep-sea CapEx: The global shift toward deepwater oil and gas exploration is expected to further drive up capital expenditures for offshore equipment in the coming months.

This article does not constitute investment advice.