Core Viewpoint - CNOOC Services is considering raising 5 billion RMB through the issuance of offshore RMB bonds, with potential maturities of 3 and 5 years [1] Group 1 - The bond issuance is expected to be promoted as early as November, although details are still under discussion and may change [1]

Core Viewpoint - The company reported a significant increase in net profit for Q3 2025, exceeding market expectations, driven by high utilization rates of drilling platforms and reduced financial interest expenses [1]. Group 1: Financial Performance - In Q3 2025, the company's operating revenue reached 11.5 billion yuan, a year-on-year increase of 3.6% [1]. - The net profit attributable to shareholders was 1.25 billion yuan, representing a year-on-year growth of 46% [1]. Group 2: Drilling Platform Operations - The total operating days for drilling platforms in Q3 2025 were 4,878 days, an increase of 16% year-on-year but a decrease of 3% quarter-on-quarter [1]. - Semi-submersible drilling platforms saw a 59% year-on-year increase in operating days, while self-elevating platforms experienced an 8% year-on-year increase [1]. - Utilization rates for self-elevating and semi-submersible platforms were 92.8% and 87.4%, respectively, reflecting increases of 7.9 percentage points and 25.4 percentage points year-on-year [1]. Group 3: Oilfield Technology Services - The company is focused on enhancing its technology-driven capabilities, aiming to develop a core technology system driven by fundamental research [1]. - The oilfield technology services segment maintained year-on-year growth in operating volume for the first three quarters of 2025 [1].

Summary of China Oilfield Services Limited (COSL) Conference Call Company Overview - **Company**: China Oilfield Services Limited (COSL) - **Period**: First three quarters of 2025 Key Financial Performance - **Revenue**: - Total revenue reached RMB 34.854 billion, a year-on-year increase of 3.5% driven by high-value exploration and production services despite fluctuating oil prices [2][3] - **Net Profit**: - Net profit attributable to shareholders increased by 31.3% year-on-year, totaling RMB 3.209 billion [2][3] - **Effective Tax Rate**: - Decreased from approximately 28% in Q1-Q3 2024 to around 20% in mid-2025, attributed to improved operations in Norway and absence of vessel idling issues in Saudi Arabia [2][7][10] Segment Performance - **Drilling Segment**: - Achieved double-digit growth in calendar day utilization rates through lean management and optimized resource allocation [2][4] - **Technical Service Segment**: - Experienced a 3% revenue decrease due to reduced global upstream investment, but profit margins remained above 16% [2][11] - **Vessel Segment**: - Consolidated leading market share domestically with operational days increasing by 9,427 days year-on-year, driving nearly 10% growth in segment revenue [4] - **Non-Carbon Segment**: - Focused on high-return businesses, achieving both revenue and profit growth year-on-year [4] Operational Insights - **Global Operations**: - COSL is focused on maintaining high efficiency in current drilling operations and dynamically adjusting equipment utilization globally [2][6] - **Market Conditions**: - Increased uncertainty in the global energy services market due to fluctuating oil prices, but COSL is meeting demand for increased reserves and production [3] - **Future Projections**: - Anticipates continued upward trends in gross margins into Q4 2025, despite slight revenue declines in Q2-Q3 [2][13] Strategic Focus - **Resource Security**: - COSL aims to ensure resource security for domestic oil and gas reserve increases while emphasizing overseas operational quality and technological innovation [4] - **Overseas Expansion**: - Plans to expand overseas operations, particularly in technical services, through collaboration with global IOC and NOC entities [12][21] - **Debt Management**: - Achieved significant savings in finance costs through active debt management, including repaying $1 billion USD of debt [20] Additional Insights - **Operational Capacity**: - Improved profitability in the online segment indicates near full capacity utilization of North Sea assets [18] - **Contract Growth**: - Locked overseas technical contracts grew nearly 47% year-on-year, with bundled services increasing by 255% [23] - **Systemic Charging**: - Systemic charging has become a trend in mainland China, constituting approximately 50% of operations volume, with minimal short-term impact on profitability [16] This summary encapsulates the key points from the conference call, highlighting COSL's financial performance, segment insights, strategic focus, and operational conditions.

Core Viewpoint - CNOOC Services, established in 2001 and listed in 2007, is one of the largest integrated oilfield service providers globally, covering all stages of oil and gas exploration, development, and production, with a rare full industry chain service capability [1] Financial Performance - In Q3 2025, CNOOC Services achieved a revenue of 34.854 billion yuan, ranking 2nd in the industry, surpassing the industry average of 16.033 billion yuan and the median of 1.866 billion yuan; the top competitor, Sinopec Oilfield Services, reported a revenue of 55.163 billion yuan [2] - The net profit for the same period was 3.391 billion yuan, ranking 1st in the industry, exceeding the industry average of 0.933 billion yuan and the median of 0.252 billion yuan; the second-ranked competitor, CNOOC Development, reported a net profit of 2.925 billion yuan [2] Financial Ratios - As of Q3 2025, the debt-to-asset ratio for CNOOC Services was 44.26%, lower than the previous year's 46.83% and below the industry average of 60.32%, indicating strong solvency [3] - The gross profit margin for the same period was 18.20%, up from 17.24% year-on-year and above the industry average of 17.03%, reflecting strong profitability [3] Shareholder Information - As of June 30, 2014, the number of A-share shareholders increased by 0.49% to 98,600, with an average holding of 30,000 circulating A-shares, up by 1.23% [5] - As of September 30, 2025, the top ten circulating shareholders included China Securities Finance Corporation with 138 million shares, unchanged, and other notable shareholders with varying changes in holdings [5] Business Highlights - The drilling segment remains robust, with increased operational volume and utilization rates expected to continue rising [6] - The oilfield technical services segment has shown consistent growth, becoming a core business that is likely to drive stable development [6] - The shipping segment has seen significant improvement, while the geophysical exploration business is undergoing adjustments, with future performance expected to improve [6] - CNOOC's capital expenditure remains high, which may lead to more development opportunities due to increased global oil and gas production [6]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][22][26] Core Views - The company has significantly increased its net profit in Q3 2025, with a year-on-year growth of 46.24% and a quarter-on-quarter growth of 15.69%. The revenue for Q3 2025 was 11.533 billion yuan, while the net profit reached 1.246 billion yuan [1][8] - The increase in revenue and gross profit is primarily attributed to the higher utilization rates of large equipment and the orderly operation of high-day-rate projects for overseas semi-submersible drilling platforms [1][8] - The company is focusing on optimizing its business structure, with expectations for gradual improvements in gross margins. The profit forecasts for 2025-2027 have been raised to 4.098 billion, 4.274 billion, and 4.560 billion yuan respectively [3][22] Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a revenue of 34.854 billion yuan, a year-on-year increase of 3.54%, and a net profit of 3.209 billion yuan, a year-on-year increase of 32.09% [1][8] - The gross margin for Q3 2025 was 19.53%, up by 1.46 percentage points year-on-year, and the net margin was 10.80%, up by 3.15 percentage points year-on-year [1][8] Drilling Platform Utilization - The utilization rate of drilling platforms remains high, with a total of 14,784 operational days in the first three quarters, representing a year-on-year increase of 12.3%. The self-elevating drilling platforms operated for 11,624 days, up by 9.7% year-on-year, while semi-submersible platforms operated for 3,160 days, up by 22.9% year-on-year [11][17] - The calendar day utilization rate for drilling platforms was 90.3%, an increase of 11.6 percentage points year-on-year [11] Oilfield Technology Services - The oilfield technology services segment has maintained growth in workload, with significant increases in ship service operations, totaling 62,589 operational days, a year-on-year increase of 17.7% [2][17] - The engineering survey segment is focusing on high-return businesses, with a notable increase in underwater operations, which saw a year-on-year growth of 131.3% [18]

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company's performance in the first three quarters of 2025 met expectations, with total revenue of 34.854 billion yuan, a year-on-year increase of 3.5%, and a net profit attributable to shareholders of 3.209 billion yuan, a year-on-year increase of 31.3% [6] - The offshore oil service industry remains at a high level of prosperity, with the company's drilling platform operating days reaching 14,784 days, a year-on-year increase of 12.3% [6] - The company is focusing on enhancing its core technology system driven by fundamental research, which is expected to lead to stable growth in its oilfield technical services segment [6] - The company's capital expenditure remains high, with China National Offshore Oil Corporation (CNOOC) planning capital expenditures of 125 to 135 billion yuan for 2025, providing a solid order guarantee for the company [6] - The profit forecasts for 2025 and 2026 have been raised to 3.98 billion yuan and 4.7 billion yuan respectively, maintaining the 2027 profit forecast at 5.36 billion yuan, corresponding to price-to-earnings ratios of 17X, 15X, and 13X [6] Financial Data and Profit Forecast - Total revenue for 2025 is estimated at 51.233 billion yuan, with a year-on-year growth rate of 6.1% [5] - The net profit attributable to shareholders for 2025 is projected to be 3.98 billion yuan, reflecting a year-on-year growth rate of 26.9% [5] - The earnings per share for 2025 is expected to be 0.83 yuan [5] - The gross profit margin for 2025 is estimated at 17.2% [5] - The return on equity (ROE) for 2025 is projected to be 8.5% [5]

China Oilfield Services (SEHK:02883) Q3 2025 Earnings Call October 30, 2025 04:30 AM ET Speaker0Dear ladies and gentlemen, investors and analysts, good afternoon. Thank you all for joining the twenty twenty five Third Quarter Earnings Call of China Oilfield Services Limited today. COSL, guided by the goal of building a world class energy service company with Chinese characteristics, continuously optimizes resource allocation and enhances the efficiency of capital operation. It focuses on five major developm ...

Market Overview - The oil service engineering sector increased by 0.12% on October 30, with CNOOC leading the gains [1] - The Shanghai Composite Index closed at 3986.9, down 0.73%, while the Shenzhen Component Index closed at 13532.13, down 1.16% [1] Stock Performance - Key stocks in the oil service engineering sector showed varied performance, with Yingsikangwang leading with a closing price of 14.58, up 4.29% [1] - Other notable performances include: - CNOOC Engineering at 5.49, up 0.37% - CNOOC Development at 3.92, up 0.26% - China Oil Engineering at 3.66, down 0.54% - Keli Co. at 34.60, down 0.63% [1] Trading Volume and Value - The trading volume and value for key stocks were significant, with Yingsikangwang achieving a transaction value of 713 million [1] - The overall trading volume for the oil service engineering sector indicated active participation, with various stocks showing substantial turnover [1] Capital Flow - The oil service engineering sector experienced a net outflow of 348 million from institutional investors, while retail investors saw a net inflow of 433 million [2][3] - The capital flow for individual stocks revealed: - CNOOC Development with a net inflow of 763.10 thousand from retail investors - CNOOC Engineering with a net outflow of 43.94 thousand from institutional investors [3] Individual Stock Analysis - Stocks like Beiken Energy and Huibo Yin faced significant net outflows, indicating potential concerns among institutional investors [2][3] - Conversely, stocks such as Renji Co. and Zhun Oil Co. saw notable retail investor interest, suggesting a divergence in investor sentiment [3]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][22]. Core Views - The company has significantly increased its net profit in Q3 2025, with a year-on-year growth of 46.24% and a quarter-on-quarter growth of 15.69%. The revenue for Q3 2025 was 11.53 billion yuan, with a gross margin of 19.53% [1][8]. - The drilling platform utilization rate remains high, contributing to revenue and profit growth, particularly from high-day-rate projects in the North Sea [1][11]. - The oilfield technology service segment has seen a steady increase in workload, with a notable 17.7% increase in ship service operations [2][17]. - The company is focusing on high-return businesses in the engineering survey segment, optimizing capacity allocation [2][18]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a revenue of 34.854 billion yuan, a year-on-year increase of 3.54%, and a net profit of 3.209 billion yuan, also up by 32.09% [1][8]. - The revenue for Q3 2025 was 11.533 billion yuan, with a gross margin of 19.53% and a net margin of 10.80% [1][8]. Drilling Operations - The total operating days for drilling platforms in the first three quarters reached 14,784 days, a year-on-year increase of 12.3%. The utilization rate for self-elevating platforms was 92.6% [11][1]. - The North Sea semi-submersible drilling platform projects have effectively boosted revenue and profit [1][11]. Oilfield Technology Services - The oilfield technology service segment has maintained growth in workload, with significant increases in ship service operations, totaling 62,589 days, up 17.7% year-on-year [2][17]. - The company is enhancing its service offerings to meet diverse customer needs [2][17]. Engineering Survey - The company is focusing on high-return projects, with a significant increase in underwater operations, which grew by 131.3% year-on-year, while 2D and 3D survey operations saw declines [2][18]. Profit Forecast - The profit forecast for 2025-2027 has been adjusted upwards, with expected net profits of 4.098 billion yuan, 4.274 billion yuan, and 4.560 billion yuan respectively [3][22]. - The earnings per share are projected to be 0.86 yuan, 0.90 yuan, and 0.96 yuan for the same period [3][22].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [4] Core Views - The company's Q3 net profit attributable to shareholders reached 1.25 billion yuan, a year-on-year increase of 46%, exceeding market expectations due to high utilization rates of drilling platforms and reduced financial interest expenses [1][3] - The drilling platform segment saw a significant increase in operating days, totaling 4,878 days in Q3, up 16% year-on-year, with semi-submersible drilling platforms showing a 59% increase [2] - The company maintains a positive outlook for its oilfield technology services, with operating volumes in the first three quarters of 2025 showing year-on-year growth [3] Financial Performance - For Q3 2025, the company's revenue was 11.5 billion yuan, reflecting a 3.6% year-on-year growth [1] - The projected net profits for 2025-2027 are 4.03 billion, 4.24 billion, and 4.43 billion yuan respectively, with corresponding P/E ratios of 17, 16, and 15 [3][8] - The company reported a total market capitalization of 41.39 billion yuan with a total share capital of approximately 2,960.47 million shares [5] Operational Metrics - The utilization rates for self-elevating and semi-submersible drilling platforms were 92.8% and 87.4% respectively, showing significant year-on-year increases [2] - The company is focused on enhancing its technological capabilities and integrating its innovation chain with the industry chain to drive growth [3]