China Oilfield Services Limited (“COSL” or the “Company”) announced the unaudited interim results for the six months ended 30 June 2020 (the “Period”) today.
In the first half of 2020, under the impacts of the COVID-19 pandemic and the declining oil prices, the global oil and gas companies’ capital expenditure have dropped significantly, for which the global oilfield service industry has suffered substantial impact and challenge. Facing the severe situation of the continuous downturn in the industry, the Company initiated a range of epidemic prevention and control measures, insisted on improving the governance system and abilities through reforms, made remarkable efforts to reduce costs, and accelerated industrialized applications of self-owned technology and equipment, resulting in obviously improved output speed and quality of technological achievements. In the first half of 2020, the Company’s revenue amounted to RMB14.51 billion, representing an increase of RMB949 million or 7.0% as compared with the same period of last year. Net profit amounted to RMB 1.72 billion, representing an increase of RMB736 million or 74.6% as compared with the same period of last year.
As for the drilling services segment, in the international market, the Company mobilized equipment and persons timely and safely to ensure the normal execution of contracts. With the implementation of the “Seven-Year Action Plan” in the PRC, market demand has increased with the advancement of reserves and production, representing an increase of 37.4% in the revenue from the drilling services segment as compared with the same period of last year. During the first half of the year, operating days for the Company’s drilling rigs amounted 7,662, representing an increase of 749 days or 10.8% compared with the same period of last year.
As for the well services segment, the Company continued to accelerate technological development, focus on major technological needs, increase R&D investment, and strengthen the serialisation and industrialisation of its technological products. As a result, the Company’s technical services continued to improve their profitability, acquired a number of scientific research project results, achieved breakthroughs in their application. Meanwhile, the Company successfully secured many well services contracts in the international market.
In the first half of the year, the Company’s marine support services segment performed refined management, explored cost potentials, strengthened safety capacity and equipment management capabilities, and made effective of resources to maintain market demands. Operating days for self-owned vessels has increased and the calendar day utilization rate of its self-owned vessels increased by 2.2 percentage points to 97.0% compared with the same period of last year.
As for geophysical acquisition and surveying services segment, the operation volume of domestic and overseas acquisition both decreased. The Company coordinated and promoted various tasks, and maintained a stable safety production. The safe, high-quality, efficient operations in Americas and other international service projects have earned frequent praise from customers.
In the first half of 2020, uncertain factors such as the COVID-19 pandemic caused fluctuations in international crude oil prices at the bottom and the pessimistic market sentiment. The company stabilized the overseas business through taking strict epidemic control and prevention measures and actively expanding markets. The Company achieved better operating results in the first half of 2020 as compared with the same period of last year thanks to the long-term planning within the national energy security strategy, and continued implementation of CNOOC’s “Seven-Year Action Plan”. In the second half of 2020, the entire industry is expected to remain in a downturn. Insist on the strategy of “Technical Development and International Development” and through continuous efforts in a number of initiatives such as cost reduction, quality improvement, efficiency enhancement, and cultivation of emerging industry to promote the upgrading of the Company’s industrial structure, increase investment in technology research and development, accelerate digital transformation, and expand domestic and foreign markets, the Company will strive to achieve better operating results compared with its counterparts in the industry.
