China Oilfield Services Limited (“COSL” or the “Group”) announces the unaudited results for the three months ended 31 March 2019 (the “Period”).
In view of the continuous recovery of the oilfield service industry and the increasingly active market, and the exploration and development activities in China have been accelerated, in the first quarter of 2019, the Group’s operating revenue amounted to RMB5.91 billion, representing an increase of 72.3% year-on-year, net profit amounted to RMB39 million, representing an increase of RMB683 million year-on-year. The Group continued to enhance refined management and achieve remarkable outcomes in exploring domestic and foreign markets. The workload of the Group’s major business lines increased in various extents during the Period. The workload of jack-up drilling rigs and semi-submersible drilling rigs increased with a double-digit growth in the calendar day utilization rate. The workload of marine support and various business lines of well services segment increased steadily.
The performance of Group’s four major segments are as follows.
For drilling segment, during the Period, the operating days of drilling rigs of the Group amounted to 3,312 days, representing an increase of 1,037 days or 45.6% year-on-year, among which the operating days of jack-up rigs amounted to 2,521 days, representing an increase of 38.7% year-on-year, the calendar day utilization rate of jack-up rigs increased 14.7 percentage points to 77.8% year-on-year. The operating days of semi-submersible drilling rigs of the Group amounted to 791 days, representing an increase of 72.7% year-on-year, and the calendar day utilization rate of sub-submersible drilling rigs increased 20.1 percentage points to 66.4% year-on-year.
As for the well services segment, capacities of research and development and productivity were enhanced continuously, which facilitated the expansion of domestic and foreign markets, resulting in an observable rise in the operation volume from certain business lines and a significant increase in total revenue.
The marine support services segment maintained stable operation during the Period, with the calendar day utilization rate of self-owned utility vessels growing 7.2 percentage points to 95.3%, and reaching a new high over the recent years.
As for geophysical acquisition and surveying services segment, the workload of ocean bottom cable with higher service unit price was 322 km2, reaching a significant increase year-on-year. In addition, to fulfill the saturated demand from the market in the subsequent period, the Group has promptly adjusted its strategies, changed the working base and carried out maintenance work of the factories, which led to the gradual decrease in the workload of both 2D and 3D acquisition.
Mr. Qi Meisheng, Chairman of the Company said, “Despite the recent increase in the upstream exploration and development investment and the recovery of the oilfield service industry, the market competition remains fierce. In the first quarter, benefitting from the further growth of domestic demand for exploration and development as well as the year-on-year increase in the operation volume of the well services segment in the overseas market, the Group registered a marked rise in the revenue from major business segments and achieved profitability for the quarter. It is expected that the Group will maintain relatively abundant workload in the second quarter while continuously enhancing fine management standards and strengthening the control of the growth in variable costs due to the increase in operations and it will continue to strive to achieve better operating performance by implementing diversified measures.”
