Financial Performance - For the six months ended June 30, 2024, the group's revenue was RMB 769.3 million, a decrease of RMB 73.8 million or 8.8% compared to RMB 843.1 million in the same period last year[1]. - The loss attributable to the owners of the company for the same period was RMB 62.7 million, a decrease of RMB 72.0 million compared to a profit of RMB 9.3 million in the previous year[1]. - The operating loss for the six months ended June 30, 2024, was RMB 821.4 million, compared to an operating profit of RMB 51.5 million in the same period last year[4]. - The total comprehensive loss for the six months ended June 30, 2024, was RMB 70.8 million, compared to a total comprehensive income of RMB 44.5 million in the same period last year[5]. - The basic and diluted loss per share attributable to owners for the period was RMB 0.0321[4]. - EBITDA for the six months ended June 30, 2024, was RMB 50,017 thousand, down 63.3% from RMB 136,227 thousand in the same period of 2023[16]. - The company reported a net loss before tax of RMB 68,734 thousand for the six months ended June 30, 2024, compared to a profit of RMB 12,506 thousand in the same period of 2023[16]. - The company reported financing costs of RMB 19.3 million for the first half of 2024, compared to RMB 15.9 million for the same period in 2023[27]. - The company's material costs for the same period were RMB 179.9 million, down RMB 55.0 million or 23.4% from RMB 234.9 million year-on-year[51]. - Employee compensation expenses increased to RMB 302.7 million, an increase of RMB 22.1 million or 7.9% compared to RMB 280.6 million in the previous year, primarily due to rising labor costs from new business initiatives[52]. Assets and Liabilities - The total assets as of June 30, 2024, amounted to RMB 2,623.1 million, down from RMB 2,911.2 million as of December 31, 2023[2]. - The total liabilities decreased to RMB 1,404.6 million as of June 30, 2024, from RMB 1,625.9 million as of December 31, 2023[3]. - The company's equity attributable to owners decreased to RMB 1,235.6 million from RMB 1,300.1 million[2]. - Trade receivables and notes receivable net value as of June 30, 2024, was RMB 858,759 thousand, a decrease of 15.5% from RMB 1,016,402 thousand as of December 31, 2023[19]. - Non-current assets as of June 30, 2024, amounted to RMB 500,598 thousand, a decrease from RMB 527,012 thousand as of December 31, 2023[18]. - The company's total assets, including property, plant, and equipment, decreased to RMB 400.6 million, down RMB 6.4 million or 1.6% from RMB 407.0 million as of December 31, 2023[60]. - As of June 30, 2024, inventory decreased to RMB 607.1 million, down RMB 49.5 million or 7.5% from RMB 656.6 million on December 31, 2023, primarily due to inventory consumption and increased provisions for inventory impairment[65]. - Contract assets, trade receivables, and notes receivable totaled RMB 869.7 million as of June 30, 2024, a decrease of RMB 168.7 million or 16.3% from RMB 1,038.4 million on December 31, 2023, mainly due to more timely collection of receivables and increased provisions for impairment losses[65]. - The capital debt ratio increased to 52.2% as of June 30, 2024, up 11.9% from 40.3% on December 31, 2023[67]. - The total equity attributable to equity holders decreased to RMB 1,235.6 million as of June 30, 2024, down RMB 64.5 million or 5.0% from RMB 1,300.1 million on December 31, 2023[68]. Revenue Segmentation - Drilling segment revenue was RMB 225,850 thousand, down 5.5% from RMB 239,147 thousand in the previous year[13]. - Completion segment revenue decreased significantly to RMB 107,360 thousand, a decline of 44.5% from RMB 192,897 thousand in the prior year[13]. - Reservoir segment revenue increased to RMB 370,807 thousand, up 14.2% from RMB 324,718 thousand in the same period last year[13]. - Revenue from external customers for the six months ended June 30, 2024, totaled RMB 769,297 thousand, a decrease of 8.7% compared to RMB 843,059 thousand for the same period in 2023[14]. - Revenue from the China segment for the six months ended June 30, 2024, was RMB 474,495 thousand, a decrease of 3.2% from RMB 493,630 thousand in the same period of 2023[17]. - Revenue from the Chinese market was RMB 474.5 million, a decrease of RMB 19.1 million or 3.9%, accounting for 61.7% of total revenue[33]. - Revenue from overseas markets was RMB 294.8 million, a decrease of RMB 54.7 million or 15.7%, accounting for 38.3% of total revenue[33]. - The revenue from the oil reservoir segment was RMB 370.8 million, an increase of RMB 46.1 million or 14.2%, accounting for 48.1% of total revenue[35]. - The drilling segment revenue was RMB 225.9 million, a decrease of RMB 13.3 million or 5.6%, representing 29.4% of total revenue[35]. - The completion segment revenue was RMB 107.4 million, a decrease of RMB 85.5 million or 44.3%, accounting for 14.0% of total revenue[35]. - The other segment revenue was RMB 65.3 million, a decrease of RMB 21.0 million or 24.4%, representing 8.5% of total revenue[35]. Strategic Focus and Market Outlook - The company is focused on providing integrated solutions for oil and gas exploration and development, including carbon capture and storage technology[7]. - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[14]. - The company emphasized a strategic upgrade to focus on its core oil service business while accelerating the development of its renewable energy business[34]. - The company plans to deepen regional market engagement and actively explore overseas and emerging markets[34]. - The company aims to enhance its value creation by expanding into overseas markets and focusing on high-end, intelligent, and low-carbon development in response to customer demands[73]. - The company will continue to prioritize technological innovation to meet increasing service and emission reduction requirements from clients, enhancing its market competitiveness[74]. - The company is actively pursuing strategic discoveries in key basins and enhancing its technological capabilities to support the green transition and carbon capture initiatives[44]. - The company is adjusting its market strategies in Kazakhstan to ensure sustainable development and improve risk resistance amid recent severe flooding[42]. - The company aims to enhance its risk management capabilities and maintain sustainable development through strict adherence to ESG principles[34]. Corporate Governance and Compliance - The financial statements are prepared in accordance with International Accounting Standard 34, ensuring compliance with international reporting standards[8]. - The board does not recommend a mid-term dividend for the six months ending June 30, 2024, consistent with the previous period[75]. - The company has adopted a high standard of corporate governance to protect shareholder interests and enhance corporate value[77]. - The chairman and CEO roles are currently held by the same individual, which the board believes ensures consistency in leadership and operational efficiency[78]. - The audit committee has reviewed the accounting principles and practices adopted by the group for the six months ending June 30, 2024[80]. Operational Efficiency and Innovations - The group has established standard operating procedures for its integrated column technology in complex well operations, setting industry benchmarks[47]. - The newly developed rotary anti-sticking strong magnetic scraper reduces preparation time by approximately three days, enhancing operational efficiency[47]. - The group’s self-developed HYBEORTM technology has shown significant economic benefits and is expected to meet increasing service demands for enhanced oil recovery[46]. - The group’s 8.5-inch PDC drill bit achieved a drilling rate of 1,619 meters per day in a shale gas well, significantly improving drilling speed and reducing costs[47]. - The newly developed 25K downhole safety valve has been successfully used in western Xinjiang oil fields, marking a breakthrough in the market[47]. - The Singapore global R&D center has successfully obtained the fourth edition API certification, marking a significant breakthrough in technology innovation and product quality[42]. - The group signed a technical service contract for natural gas well testing with PetroChina Southwest Oil and Gas Field for the 2024-2025 period, expanding its sales of electronic pressure gauges[45]. - The group is actively participating in multiple CCUS projects, with significant progress in the Yulin Chemical CCUS project, including completed geological surveys and site selection[45]. Market Conditions and Economic Factors - The international oil price remains high due to geopolitical tensions and OPEC+ voluntary production cuts, leading to increased upstream exploration and development investments by oil companies[41]. - In 2024, Kazakhstan contributed 48.0% to the group's overseas revenue, making it the largest overseas market for the company[43]. - The domestic oil service market is expected to improve due to stable growth in upstream investments, despite ongoing pressure on profit margins from oil companies[41]. - The company anticipates that international oil prices will remain high due to low global crude oil inventories, OPEC+ production cuts, and geopolitical tensions, with a focus on capital expenditure in the oil and gas sector[73]. - The domestic investment in oil and gas exploration and development is expected to continue increasing, supported by national energy security strategies and policies[73].
华油能源(01251) - 2024 - 中期业绩