Core Viewpoint - China National Offshore Oil Corporation (CNOOC) Services, the largest offshore drilling contractor in China, has demonstrated steady growth in its operating performance, with significant increases in both revenue and net profit in the first half of 2025 [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 23.32 billion yuan, a year-on-year increase of 3.51%, and a net profit attributable to shareholders of 1.964 billion yuan, up 23.33% year-on-year [1]. - The company has experienced four consecutive increases in mid-year revenue and net profit since mid-2022, with revenues of 15.213 billion yuan, 18.874 billion yuan, and 22.529 billion yuan from mid-2022 to mid-2024, reflecting growth rates of 19.45%, 24.07%, and 19.37% respectively [1]. - The net profits for the same period were 1.103 billion yuan, 1.339 billion yuan, and 1.592 billion yuan, with growth rates of 37.57%, 21.12%, and 18.92% respectively [1]. Group 2: Business Segments - The drilling services segment generated revenue of 7.238 billion yuan in the first half of 2025, marking a year-on-year increase of 12.8% [2]. - The oilfield technical services segment reported revenue of 12.378 billion yuan, a decline of 3.5% year-on-year [2]. - The marine services segment achieved revenue of 2.608 billion yuan, reflecting a growth of 19.8% year-on-year [2]. - The company maintained stable revenue of 1.095 billion yuan from geophysical data acquisition and engineering survey services [2]. Group 3: Market Position and Shareholder Confidence - CNOOC Services is recognized as one of the largest integrated oilfield service providers globally, with a complete service chain and strong offshore oil service equipment capabilities [2]. - The proportion of revenue from international markets has been gradually increasing, with 21.47% and 22.53% of revenue coming from international markets in 2023 and 2024 respectively, and 5.518 billion yuan in the first half of 2025, up 23.66% year-on-year [2]. - The major shareholder, China National Offshore Oil Group, has expressed confidence in the company's future, planning to increase its stake by 300 million to 500 million yuan, having already acquired 16.08 million shares, raising its holding to 50.86% [3].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [4][15]. Core Views - The company reported a year-on-year increase in net profit attributable to shareholders of 12.5% in Q2 2025, with total revenue reaching 23.3 billion, up 3.5% year-on-year [1][3]. - The increase in daily rates for semi-submersible platforms is attributed to the commencement of high daily rate contracts, leading to a significant rise in revenue [2]. - The revenue from oilfield technical services saw a slight decline of 3.5% year-on-year, influenced by falling oil prices and reduced capital expenditures from global oil companies [3]. Financial Performance Summary - In Q2 2025, the company achieved an operating income of 12.5 billion, a 1.2% increase year-on-year, and a net profit of 1.077 billion, reflecting a 12.5% increase year-on-year [1]. - The operating days for semi-submersible drilling platforms increased by 12% year-on-year, contributing to improved utilization rates [2]. - The average daily rate for semi-submersible platforms rose by 27.6% year-on-year to 171,000 USD, while the rate for self-elevating platforms decreased by 5.4% to 70,000 USD [2]. Financial Forecasts - The forecasted net profit attributable to shareholders for 2025-2027 is 4.03 billion, 4.24 billion, and 4.43 billion respectively, with corresponding P/E ratios of 17.4, 16.6, and 15.9 [3][8]. - The projected revenue growth rates for the years 2023 to 2027 are 23.7%, 9.5%, 5.6%, 5.4%, and 3.8% respectively [8].

Core Viewpoint - CNOOC Services reported year-on-year growth in both revenue and profit for the first half of the year, primarily driven by the drilling business [1] Revenue Performance - The company experienced revenue growth of 12.8% in drilling and 19.8% in shipping services [1] - The significant increase in drilling revenue was attributed to the launch and operation of high-day-rate projects in the North Sea region of Norway, along with an increase in operational workload [1] Profitability Improvement - All business segments showed improvement in profitability or reduced losses [1] - The gross profit margin in overseas regions increased by 6.06 percentage points to 11.17%, mainly due to a substantial turnaround in overseas drilling operations [1] Asset Impairment and Future Outlook - The company recorded an asset impairment loss of 82.03 million yuan in the first half, primarily concentrated in the drilling business due to high oil price volatility [1] - With the resumption of four platforms in the Middle East and ongoing operations of high-day-rate drilling platforms in Norway, the company expects further improvement in day rates and high platform utilization in the second half of the year [1] Long-term Growth Potential - The company is anticipated to continue its overseas expansion and benefit from favorable industry conditions, with expected performance growth from 2025 to 2027 [1]

Core Viewpoint - CNOOC Services reported a mixed performance in its interim results, with revenue growth but a decline in oil service income, leading to a stock price drop of over 4% following the announcement [1] Financial Performance - The company achieved revenue of 23.32 billion RMB, an increase of 3.51% year-on-year [1] - Profit attributable to shareholders was 1.964 billion RMB, reflecting a year-on-year increase of 23.33% [1] - Basic earnings per share were 0.4116 RMB [1] Oil Service Segment - Oil service income decreased by 3.5% year-on-year to 12.38 billion RMB, with operating profit margin remaining stable at 17% [1] - The number of oil service orders for the parent company may have slightly decreased year-on-year [1] Drilling Operations - The company's drilling operating profit significantly recovered compared to 2024, with an operating profit margin increase of 4 percentage points to 9% [1] - The number of operating days in the second quarter increased by 11% year-on-year to 5,017 days, with semi-submersible usage days rising by 12% and a 2% increase quarter-on-quarter [1] Future Outlook - The impact of drilling suspensions in the Middle East is expected to have largely dissipated from the second half of 2024 to the first half of 2025 [1] - Contracts in Southeast Asia and Brazil are anticipated to yield higher day rates and profits [1]

Core Viewpoint - CNOOC Services experienced a decline in stock price and trading volume, with a market capitalization of 68.759 billion yuan as of August 27, 2023 [1] Group 1: Stock Performance - As of August 27, 2023, CNOOC Services' stock price was 14.41 yuan per share, down 2.04% [1] - Year-to-date, the stock price has decreased by 4.05%, with a 2.20% increase over the last five trading days, a 1.55% increase over the last 20 days, and an 8.11% increase over the last 60 days [1] Group 2: Financial Performance - For the first half of 2025, CNOOC Services reported revenue of 23.32 billion yuan, a year-on-year increase of 3.51%, and a net profit attributable to shareholders of 1.964 billion yuan, up 23.33% [2] Group 3: Shareholder Information - As of June 30, 2025, the number of shareholders increased to 68,200, a rise of 4.90% [2] - CNOOC Services has distributed a total of 15.492 billion yuan in dividends since its A-share listing, with 2.866 billion yuan distributed over the last three years [3] - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which reduced its holdings by 37.7625 million shares, and several ETFs that increased their holdings [3]

Core Viewpoint - The report from CICC highlights that the utilization rate of CNOOC Oilfield Services' drilling platforms has risen to over 90%, which has positively impacted the market sentiment [1] Group 1: Company Performance - CNOOC Oilfield Services is expected to have stronger pricing power, leading to significant operational leverage for its drilling business [1] - If the company can simultaneously improve its drilling services, it will provide dual momentum for a more substantial re-evaluation [1] Group 2: Financial Projections - CICC has raised the earnings per share forecast for CNOOC Oilfield Services for the years 2025 to 2027 by 0% to 1% [1] - The target price for H-shares has been increased from HKD 8.4 to HKD 9.3, while the target price for A-shares has been raised from RMB 18.3 to RMB 19.5 [1] - The rating of "Outperform" has been maintained for the stock [1]

Core Viewpoint - The report from Credit Lyonnais highlights that the utilization rate of CNOOC Oilfield Services' drilling platforms has risen to over 90%, which is encouraging for the market [1] Group 1: Company Performance - CNOOC Oilfield Services is expected to have stronger pricing power, leading to significant operational leverage for its drilling business [1] - If the company can simultaneously improve its drilling services, it will provide dual momentum for a more significant re-evaluation [1] Group 2: Financial Projections - Credit Lyonnais has raised the earnings per share forecast for CNOOC Oilfield Services for 2025 to 2027 by 0% to 1% [1] - The target price for H-shares has been increased from HKD 8.4 to HKD 9.3, while the target price for A-shares has been raised from RMB 18.3 to RMB 19.5 [1] - The rating of "Outperform" is maintained for the stock [1]

Core Viewpoint - CNOOC Services (02883) experienced a decline of over 4% following the release of its interim results, with shares trading at HKD 7.4 and a transaction volume of HKD 118 million [1] Financial Performance - The company reported revenue of RMB 23.32 billion for the period, representing a year-on-year increase of 3.51% [1] - Profit attributable to shareholders was RMB 1.964 billion, reflecting a year-on-year increase of 23.33% [1] - Basic earnings per share were reported at 41.16 cents [1] Segment Analysis - According to CICC's report, oil technical service revenue decreased by 3.5% year-on-year to RMB 12.38 billion, with the operating profit margin remaining stable at 17% [1] - The company's drilling operating profit showed a significant recovery compared to 2024, with the operating profit margin increasing by 4 percentage points to 9% [1] - The number of operating days in the second quarter increased by 11% year-on-year to 5,017 days, with semi-submersible usage days rising by 12% and a 2% increase quarter-on-quarter [1] Future Outlook - CICC anticipates that the impact of drilling suspensions in the Middle East will have largely dissipated from the second half of 2024 to the first half of 2025 [1] - Contracts in Southeast Asia and Brazil are expected to yield higher day rates and profits for the company [1]

Financial Data and Key Metrics Changes - The company reported a net profit growth of over 20% year on year for H1 2025, indicating strong financial performance [2][4]. Business Line Data and Key Metrics Changes - The Drilling Services segment experienced growth in both volume and price, with a 28% year-on-year increase in daily rates for jackup drilling rigs [5][8]. - The Well Services segment saw a decline in revenue by approximately $400 million and a profit decrease of about $110 million to $130 million, attributed to a reduced customer base and increased competition [6][14]. Market Data and Key Metrics Changes - The company operates 13 drilling rigs overseas, with contracts secured until 2029 or 2030 in regions like Norway and the Middle East, suggesting stability in overseas operations [5][11]. - The oil price is forecasted to remain stable at around USD 65 to USD 70, which is considered a reasonable level for the industry [5][10]. Company Strategy and Development Direction - The company aims to become an internationally first-rate oilfield service provider, focusing on technological leadership and innovation [33][34]. - There is a clear goal to broaden the customer base and enhance innovation capabilities, with significant investments in technology [35][36]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining daily rates due to secured contracts and a stable operational environment despite macroeconomic uncertainties [12][20]. - The company plans to control costs and increase revenue, emphasizing the importance of operational efficiency [17][20]. Other Important Information - The company completed a loan repayment of $1 billion, utilizing both self-owned capital and borrowed funds to optimize its debt structure [15][16]. - The company is focusing on developing made-in-China drilling rigs, which are expected to provide cost-effective solutions in a low to medium oil price environment [26][27]. Q&A Session Summary Question: Concerns about Drilling Services segment and daily rate stability - Management indicated that the daily rates for drilling services are expected to remain stable due to secured contracts and a favorable market outlook [5][10]. Question: Reasons for decline in Well Services segment - The decline was attributed to a reduced customer base in China and increased competition, leading to changes in the charging model [6][14]. Question: CapEx adjustments and fund utilization - Management confirmed that the decline in revenue was more pronounced overseas, particularly in Southeast Asia, and discussed the repayment of debts using self-owned capital [13][15]. Question: Future plans for old and new vessels - The company is optimizing its vessel fleet and has made progress in this area, focusing on both the disposal of older vessels and the development of new ones [25][30].

Financial Data and Key Metrics Changes - The company reported a net profit growth of over 20% year on year for the first half of 2025 [3][5][35] - Operational efficiency has improved, and the company's value creation capabilities have strengthened both domestically and internationally [3][4] Business Line Data and Key Metrics Changes - In the Drilling Services segment, daily rates for jackup drilling rigs increased by 28% year on year [10][12] - The Well Services segment experienced a revenue decline of approximately $400 million and a profit decrease of about $110 million to $130 million [7][16] - The customer base for Well Services in China decreased, impacting revenue and profitability [8][16] Market Data and Key Metrics Changes - The company has 13 drilling rigs overseas, with contracts secured until 2029 or 2030 in regions like Norway and the Middle East [6][12] - The oil price is forecasted to remain stable at around USD 65 to USD 70, which is considered a reasonable medium level for the industry [6][12] Company Strategy and Development Direction - The company aims to become an internationally first-rate oilfield service provider, with a focus on technological leadership and innovation [35][36] - Plans include broadening the customer base and developing new products based on technological innovations [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining daily rates due to stable contracts and investments in key regions despite macroeconomic uncertainties [14][20] - The company is focused on cost management and efficiency improvements to navigate market volatility [20][23] Other Important Information - The company completed a loan repayment of $1 billion using self-owned capital and borrowed funds, optimizing its debt structure [17][18] - The company is actively working on designing and promoting made-in-China drilling rigs, with positive industry recognition [29][30] Q&A Session Summary Question: Concerns about Drilling Services segment and daily rate stability - Management indicated that overseas contracts are stable, and daily rates are expected to remain steady despite low oil prices [6][12] Question: Reasons for decline in Well Services segment - The decline was attributed to a decrease in the customer base in China and increased competition in the oilfield chemical industry [8][16] Question: Future CapEx adjustments and fund utilization - Management confirmed that the revenue decline was primarily from China, and they have optimized their debt structure to manage funding needs [17][18] Question: Impact of old vessel disposal and new vessel plans - The company is focusing on optimizing its vessel fleet and has made progress in this area [28] Question: Future prospects for new drilling rigs - Management is optimistic about the prospects for new drilling rigs and plans to move into concrete building works in the near future [29][30]