Core Insights - The company reported a revenue of 34.85 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 3.5%, and a net profit attributable to shareholders of 3.21 billion yuan, up 31.3% year-on-year [1] - In Q3 2025, the company achieved a revenue of 11.53 billion yuan, with a year-on-year increase of 3.6%, and a net profit of 1.25 billion yuan, reflecting a significant growth of 46.1% [1] - The company's profitability continues to improve, with a comprehensive gross margin of 18.2% for the first three quarters, an increase of 1.0 percentage points year-on-year, and a net profit margin of 9.7%, up 1.9 percentage points [1] Revenue and Profitability - The drilling segment saw a significant increase in platform utilization, with a total of 14,784 operational days, a year-on-year increase of 12.3% [2] - The utilization rate of drilling platforms reached 90.3%, up 11.6 percentage points year-on-year, with self-elevating platforms at 92.6% and semi-submersible platforms at 82.7% [2] - The oil technology segment is driven by technology, focusing on building an integrated engineering service system, with major business lines maintaining growth in operational volume [2] Market Position and Strategy - The company maintains a high market share domestically, focusing on enhancing equipment resource reserves and flexibility in allocation, while innovating the "ship+" service system to meet diverse customer needs [3] - The geophysical exploration segment is optimizing its industrial layout, concentrating on high-return businesses, with a significant increase in underwater operational volume by 131.3% [3] - The company forecasts net profits attributable to shareholders of 4.0 billion, 4.39 billion, and 4.76 billion yuan for 2025-2027, with a compound annual growth rate of 15% [3]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a revenue of 34.854 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 3.5%. The net profit attributable to shareholders was 3.209 billion yuan, up 31.3% year-on-year, with a basic earnings per share of 0.67 yuan, also reflecting a 31.4% increase year-on-year [1][2] - In Q3 2025, the company achieved a revenue of 11.533 billion yuan, a year-on-year increase of 3.6% but a quarter-on-quarter decrease of 7.9%. The net profit attributable to shareholders was 1.246 billion yuan, up 46.1% year-on-year and 15.7% quarter-on-quarter [2] - The increase in profit and margins in Q3 is attributed to improved operational efficiency and a decrease in the tax rate, which fell by 9.04 percentage points to 18.66% [3] Financial Performance Summary - For the years 2025 to 2027, the projected net profit attributable to shareholders is 41.88 billion yuan, 45.11 billion yuan, and 48.70 billion yuan, with year-on-year growth rates of 33.5%, 7.7%, and 8.0% respectively. The diluted EPS for the same years is expected to be 0.88 yuan, 0.95 yuan, and 1.02 yuan [5] - The company's revenue is forecasted to grow from 54.112 billion yuan in 2025 to 60.306 billion yuan in 2027, with corresponding growth rates of 12.0%, 5.8%, and 5.3% [4] - The gross margin is expected to improve from 17.0% in 2025 to 17.3% in 2027, while the return on equity (ROE) is projected to remain stable around 9.0% to 9.1% during the same period [4]

Investment Rating - The investment rating for the company is "Buy" for both A and H shares, maintained at this level [7]. Core Views - The company reported a revenue of 34.854 billion RMB for the first three quarters of 2025, a year-on-year increase of 3.54%. The net profit attributable to shareholders was 3.209 billion RMB, up 31.28% year-on-year, driven by improved rental rates and daily rates for drilling platforms [1]. - The gross margin for Q3 2025 was 19.53%, an increase of 1.46 percentage points year-on-year, attributed to higher utilization rates of large equipment and efficient operations of high daily rate projects [2]. - The drilling platform business is experiencing a recovery, with cumulative operating days reaching 14,784, a year-on-year increase of 12.3%, indicating strong operational efficiency [3]. - The company is focusing on high-return projects in its geophysical exploration segment, optimizing capacity to enhance overall business quality and profitability [4]. - Profit forecasts for 2025-2027 project net profits of 4.172 billion, 4.928 billion, and 5.642 billion RMB respectively, with corresponding EPS of 0.87, 1.03, and 1.18 RMB [5]. Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 11.533 billion RMB, a year-on-year increase of 3.60%, and a net profit of 1.246 billion RMB, up 46.13% year-on-year [1]. - The overall expense ratio decreased to 6.67%, down 0.61 percentage points year-on-year, reflecting improved cost control [2]. Drilling Platform Operations - The drilling platform's calendar day utilization rate reached 90.3%, a year-on-year increase of 11.6%, indicating strong demand in the offshore oil and gas sector [3]. Ship Operations and Geophysical Exploration - The company operates over 200 vessels, with a total operating time of 62,589 days, a year-on-year increase of 17.7% [4]. - The geophysical exploration segment has seen a strategic focus on high-return projects, with a significant increase in underwater operations [4]. Profitability and Valuation - The company is expected to maintain a valuation premium due to its leading position in the offshore oil and gas equipment industry, with target prices set at 16.05 RMB for A shares and 8.16 HKD for H shares [5].

Core Viewpoint - The chemical industry is entering a downward cycle due to high costs and weak supply-demand dynamics, despite maintaining high capital expenditure and supply growth since the peak in 2021. However, there are "long-termist" companies capable of navigating through the cycle, providing substantial returns to investors through growth and dividends [1][2]. Group 1: Industry Overview - The chemical industry has experienced high capital expenditure and significant supply growth since the peak in 2021, but demand recovery remains relatively weak, leading to a high-cost and weak supply-demand environment [1]. - Long-termist companies in the chemical sector are characterized by strong shareholder backgrounds, excellent management capabilities, reasonable industry chain layouts, continuous R&D investment, and a strong sense of social responsibility, enabling them to achieve stable growth and sustainable development [2]. Group 2: Oil and Gas Sector - The "three major oil companies" (China National Petroleum, Sinopec, and CNOOC) are expected to maintain high capital expenditure and enhance natural gas market development, aiming for long-term growth despite oil price fluctuations [3]. - The domestic oil service companies are benefiting from high upstream capital expenditure, with improved operational quality and international competitiveness, particularly in the context of the Belt and Road Initiative [3]. Group 3: Refining and Chemical Fiber Industry - The refining and chemical fiber industry is anticipated to recover, with the refining expansion nearing completion and supply-demand dynamics expected to improve, leading to high-quality development in the sector [4]. - The polyester sector is seeing limited new capacity, with structural optimization accelerating, which is expected to enhance the market share and competitiveness of leading companies [4]. Group 4: Coal Chemical Industry - The coal chemical industry is projected to improve profitability due to a gradual easing of coal supply and demand, alongside a decline in coal prices. The transition towards modern coal chemical processes is seen as essential for traditional coal enterprises [5]. - The average prices for various coal types have decreased, with main coking coal, thermal coal, and anthracite prices showing declines of -10.5%, -2.0%, and -16.0% respectively compared to the beginning of the year [5]. Group 5: Investment Recommendations - The report suggests focusing on leading companies in the upstream oil and gas sector and oil service companies, including China National Petroleum (601857.SH), Sinopec (600028.SH), CNOOC (600938.SH), and others [6]. - For the refining and chemical fiber sector, companies like Hengli Petrochemical (600346.SH) and Rongsheng Petrochemical (002493.SZ) are recommended due to their potential benefits from industry optimization and upgrades [7]. - In the coal chemical sector, companies such as Hualu Hengsheng (600426.SH) and Baofeng Energy (600989.SH) are highlighted for their expected improvement in profitability [7]. - The report also suggests monitoring cyclical leading companies like Wanhua Chemical (600309.SH) and Satellite Chemical (002648.SZ) as demand recovers and supply-demand dynamics improve [7].

Index Performance - The Hang Seng Index (HSI) closed at 26,283, down 0.2% for the day but up 31.0% year-to-date (YTD) [2] - The MSCI China index increased by 36.2% YTD, despite a 0.2% decline on the last day [2] - The CSI 300 index showed a YTD increase of 19.7%, with a 0.8% drop on the last day [2] Commodity Price Performance - Brent Crude oil prices fell by 0.3% to $65 per barrel, down 9.9% YTD [3] - Gold prices rose by 2.4% to $4,025 per ounce, reflecting a significant YTD increase of 53.3% [3] - Copper prices increased by 1.3% to $11,184 per ton, with a YTD rise of 27.5% [3] Macro and Earnings Releases - The Core PCE Index in the US remained stable at 2.9% YoY as of October 31 [4] - US Personal Income increased by 0.4% MoM, consistent with expectations [4] - US Auto Sales were reported at an annualized rate of 16.4 million units, exceeding the consensus of 15.5 million [4] Corporate Earnings Insights - Sinopec's net profit dropped 15% QoQ to RMB 8.3 billion, 26% below forecasts, with a projected 22% decline in Q4 earnings [10] - China Oilfield Services (COSL) reported a 16% QoQ earnings growth to RMB 1.25 billion, but expects a 17% decline in Q4 [13] - CNOOC Limited's net profit fell 12% YoY to RMB 32.4 billion, but was 6% above forecasts, with a projected 21% decline in Q4 earnings [17]

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]