China Oilfield Services Limited (hereinafter referred to as “COSL” or the “Company”) released its audited annual report for 2019.

In 2019, strengthening its self-owned technology research and development and technical reserves, the Company insisted on the technological and international development strategy, as well as continuously promoting its service and industrial upgrades through management reforms and technical innovation. The crude oil market was turbulent throughout 2019, the Company grasped opportunities to increase the investment in global upstream oil and gas exploration and development and growing domestic exploration and development activities, and achieved relatively rapid growth in its annual business results compared with 2018. Full-year revenue for 2019 was RMB 31,135 million, representing an increase of 41.9% year-on-year, and profit for the year was RMB 2,528 million, increased RMB 2,439 million as compared with 2018.

The performance of the company’s four major segments are as follows.

For the drilling services segment, the Company insist on its international strategic development and actively respond to national policy calls for rational allocation of resources, COSL has improved the capabilities in equipment management and technical services. Responded to the increased need of exploration and development activities and also the need of improving quality and increasing efficiency, the Company achieved satisfactory progress in the development of both international and domestic markets, leading the revenue of its drilling services segment to surge 39.6% year-on-year. In 2019, the Group’s drilling rigs operated for 14,737 days, representing a year-on-year increase of 3,599 days which increased by 32.3%, and the calendar day utilization rate increased by 11.7 percentage to 78.5%.

As for the well services segment, COSL vigorously promoted the reform of technical systems and mechanisms, continuously input more effort in technology research and development and technology innovations and promoted industrialization incentive fund projects in the technology series. The technology development has achieved outcomes, which accelerated the process of industrialization and commercialization of the product series. A large batch of new technologies with self-owned intellectual property rights went into operation in domestic and constantly refreshed operation records, including high-end drilling fluids, deep-water high temperature and high pressure well cementing, pressure testing and sampling in modular system, 205℃ high temperature slam, Outline While Drilling and Pressure-measuring While Drilling. The Company successfully acquired a large number of service contracts for its well services on the international market.

For the marine support services segment, the Company optimised its market layout to meet market demand through reasonable allocation of resources. Twelve eco-friendly LNG-powered supply vessels, which invested and built in the implementation of the green development are under construction. The calendar-day utilization rate of self-owned utility vessels was 94.3% in 2019, representing an increase of 4.1 percentage points as compared with 2018.

Regarding its geophysical acquisition and surveying services segment, the workload of 3D acquisition and ocean bottom cable business increased significantly compared with 2018, and the Company got a remarkable results in the development of its offshore wind power survey market.

Mr. Qi Meisheng, Chairman of the board of COSL, remarked that “2020 will still be a challenging year for oilfield services market. As guided under the new development idea, the Company will speed up the research and development and innovation of green and eco-friendly low-carbon technology; enhance its core competitiveness through technological and industry upgrade; allocate equipment resources flexibly in various ways such as self-owned assets, leases and management to timely respond to the change in the market, try our best to achieve high quality development.”