COSL(HK:02883)2021-09-23 09:40Financial Performance - In the first half of 2021, the company achieved operating revenue of RMB 12.723 billion, a decrease of 12.2% compared to RMB 14.497 billion in the same period of 2020[8]. - The net profit for the first half of 2021 was RMB 809 million, down 53.0% from RMB 1.723 billion in the first half of 2020[8]. - The company reported an operating profit of RMB 1.355 billion, a decline of 38.9% from RMB 2.222 billion in the same period of 2020[8]. - The total operating revenue for the first half of 2021 was RMB 12,723.0 million, a decrease of RMB 1,773.7 million, or 12.2% year-on-year, attributed mainly to a 29.5% decline in drilling services revenue[26]. - The company's operating expenses for the first half of 2021 were RMB 11,526.7 million, a reduction of RMB 925.4 million, or 7.4% compared to the same period last year[29]. - The company's net profit for the first half of 2021 was RMB 808.5 million, down from RMB 1,722.6 million in the same period last year[39]. - Basic earnings per share decreased to RMB 0.168 from RMB 0.3593 in the previous year[40]. - The company reported a decrease in financial liabilities included in trade and other payables from RMB 9.08 billion to RMB 7.81 billion[65]. - The company reported a profit of RMB 801,457 thousand for the first half of 2021, compared to RMB 1,714,199 thousand in the same period of 2020, indicating a decline of 53.32%[80]. - The total comprehensive income for the first half of 2021 was RMB 1,754,675 thousand, down from RMB 1,743,639 thousand in the first half of 2020, a decrease of 0.18%[80]. Operational Highlights - The company successfully completed over 600 well operations using its rotary steering drilling technology, achieving a first-time success rate of 90.3%[12]. - The drilling services segment reported revenue of RMB 4,347.8 million, a decrease of 29.5% compared to RMB 6,171.0 million in the same period last year[18]. - The total operating days for drilling platforms were 6,578 days, a reduction of 1,084 days or 14.1% year-on-year[19]. - The average daily revenue for self-elevating drilling platforms increased to USD 7.6, up 20.6% from USD 6.3[20]. - The oilfield technical services segment generated revenue of RMB 6,020.0 million, remaining relatively stable compared to RMB 6,050.4 million in the previous year[21]. - The company's vessel services revenue was RMB 1,535.9 million, with owned vessels contributing RMB 1,039.5 million[22]. - The total operating days for the owned vessel fleet were 14,806 days, a decrease of 735 days or 4.7% year-on-year[23]. - The calendar day utilization rate for the vessel services segment decreased by 4.1 percentage points to 92.9%[22]. - The company has successfully developed and patented several new technologies, including a high-temperature cable logging system and synthetic-based drilling fluids[21]. Strategic Initiatives - The company plans to focus on "technology-driven," "cost leadership," "integration," "internationalization," and "regional development" strategies for future growth[14]. - The company aims to enhance its risk management mechanisms and improve corporate governance to adapt to complex external environments[11]. - The company is committed to green development and aims to achieve carbon peak and carbon neutrality goals while upgrading its business and innovating technology[14]. - The company continues to enhance its cost control and green development initiatives across its operations[22]. - The company plans to enhance its R&D capabilities and focus on strategic partnerships to improve service efficiency and reduce costs[51]. - The company is focused on key technology research and development to stabilize the domestic market and expand overseas[66]. Market Conditions - The global oilfield services market remains oversaturated, with many exploration and development projects being delayed or canceled[16]. - The company continues to benefit from China's "Seven-Year Action Plan" for increasing reserves and production, contributing to a relatively stable domestic oilfield service market[16]. - The company anticipates increased upstream investment and opportunities in the oilfield service market in the second half of 2021[66]. - The domestic oilfield service market remains relatively stable, supported by the national "Seven-Year Action Plan" for increasing reserves and production[190]. Financial Position - As of June 30, 2021, total assets were RMB 74,789.7 million, a decrease of RMB 1,152.6 million or 1.5% from RMB 75,942.3 million at the end of 2020[41]. - Cash and cash equivalents decreased to RMB 5,126.1 million from RMB 6,583.7 million at the beginning of the year, with a net cash outflow from operating activities of RMB 1,888.8 million[43]. - The capital debt ratio improved to 42% as of June 30, 2021, down from 43% at the end of 2020[65]. - The company employed a total of 14,477 staff as of June 30, 2021, with a performance-oriented compensation system in place[60]. - The company has no significant asset pledges as of June 30, 2021[68]. - The company reported a foreign exchange loss of RMB 82,086 thousand, contrasting with a foreign exchange gain of RMB 60,502 thousand in the same period last year[75]. - The company’s total liabilities increased to RMB 36,100,591 thousand from RMB 35,253,500 thousand, marking an increase of 2.41%[78]. Technological Advancements - The company has developed and commercialized the "Hailiang" cable acquisition equipment and the "Haitu" comprehensive navigation system, filling a technological gap in the country[24]. - The company achieved a high operational efficiency of 95% in the dual-vessel seismic acquisition project, which is the most challenging domestic geophysical cable operation to date[24]. - The company has made significant technological advancements, including the development of high-pressure measurement systems and environmentally sensitive drilling fluids, contributing to successful operations in challenging environments[186]. International Expansion - The company has expanded its international operations, securing new projects in Southeast Asia, the Middle East, Africa, the Americas, and Europe[13]. - The company has signed its first cooperation order for drilling fluid and cementing services in North America, indicating progress in international market expansion[195]. - The company holds 100% equity in several subsidiaries, including COSL (Australia) Pty Ltd. and COSL Drilling Strike Pte. Ltd., enhancing its operational footprint in key markets[83]. - The company has a significant presence in international markets, including Indonesia, Singapore, and the Middle East, which supports its growth strategy[84].