China Oilfield Services Limited (“COSL” or the “Group”) announces its unaudited third quarterly financial report for 2019.
In the first three quarters of 2019, the global oil prices continued to fluctuate, and the capital expenditure of upstream exploration and development around the world maintained a growth momentum, and the exploration and development activities in China continued to accelerate, bring the continuous improvement of the prosperity of oilfield service market. COSL responded to the increased need of exploration and development activities in domestic positively, at the same time, strengthened the management of sustainable development. COSL actively seized market opportunities, continuously improved global equipment operation and management capabilities, enlarged application of self-independent scientific and technological achievements to meet for client needs, as a result, the workload of the main business lines has increased. In the first three quarters of 2019, the Group's revenue amounted to RMB 21,334.8 million, representing an increase of 55.5% year-on-year; the net profit amounted to RMB 2,138.2 million, representing an increase of RMB 2,401.3million.
The performance of Group’s four major segments are as follows.
For drilling segment, as COSL continued to strengthen the flexible allocation of global resources to meet the needs of domestic and foreign markets, the work volume growth year-on-year. During the Period, the operating days of rigs of the Group amounted to 10,662 days, representing an increase of 2,621 days or 32.6% as compared with the same period of last year, among which the operating days of jack-up rigs amounted to 8,036 days, representing an increase of 36.2% as compared with the same period of last year, the calendar day utilization rate of jack-up rigs increased 19.4 percentage points to 83.7% as compared with the same period of last year. The operating days of semi-submersible drilling rigs amounted to 2,626 days, representing an increase of 22.6% as compared with the same period of last year, and the calendar day utilization rate of semi-submersible drilling rigs increased 5.3 percentage points to 73.5% year-on-year.
As for the well services segment, the Group adhered to technological innovation and promoted operational efficiency. During the period, it continued to increase investment in science and technology research and development, promoted core capacity enhancement, accelerated the serialization and industrialization of technology products and achieved breakthroughs in many scientific research achievements. The domestic and international market development capabilities and professional service capabilities have been significantly improved. The operation volume from main business lines have increased significantly and the overall revenue has increased accordingly.
The marine support services segment maintained stable operation during the Period, with the calendar day utilization rate of self-owned vessels increased by 4.4 percentage points to 94.2%. In particular, the operation and utilization rate of multipurpose vessels increased significantly.
As for geophysical acquisition and surveying services segment, the workload of 3D acquisition and ocean bottom cable business increased significantly compared with the same period last year.
Mr. Qi Meisheng, Chairman of the Group said, “In the first three quarters of 2019, global oilfield service market continued to recover. Actively seized market opportunities, COSL strove to promote service upgrading and industrial upgrading through management innovation and technological innovation. We insisted on the “technological and international development” strategy, closely followed up the development trend of energy structure, and the domestic and overseas operation volumes further increased. We are happy to see COSL delivered a good operation result in the first three quarters, created higher returns for clients, shareholders and society, and achieved phase high-quality development.”
