COSL(HK:02883)2025-03-25 08:41Financial Performance - Revenue for the year ended December 31, 2024, was RMB 48,218.1 million, an increase from RMB 44,108.6 million in 2023, representing a growth of approximately 9.5%[5] - Operating profit for 2024 was RMB 5,047.6 million, compared to RMB 4,855.2 million in 2023, reflecting an increase of about 3.9%[5] - Annual profit reached RMB 3,399.1 million, up from RMB 3,282.6 million in the previous year, marking a growth of approximately 3.6%[5] - Basic earnings per share for 2024 were RMB 65.74, compared to RMB 63.15 in 2023, indicating an increase of about 4.1%[6] - The company reported a pre-tax profit of RMB 4,667,339 thousand for 2024, compared to RMB 4,242,868 thousand in 2023, reflecting an increase of approximately 10%[30] - The company’s effective corporate income tax rate is 15% for the period from 2023 to 2025 due to its high-tech enterprise status, compared to the standard rate of 25%[53] - The total income tax expense for 2024 was RMB 1,268,236 thousand, significantly higher than RMB 960,240 thousand in 2023, indicating increased profitability[56] - The company reported a net loss from the disposal of property, plant, and equipment of RMB 19,248 thousand in 2024, down from RMB 37,260 thousand in 2023[52] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 82,947.7 million, up from RMB 80,245.8 million in 2023[5] - Total liabilities decreased by 6.0% to RMB 38,523.1 million from RMB 40,989.7 million in 2023[177] - Current liabilities totaled RMB 29,602.9 million in 2024, compared to RMB 23,364.6 million in 2023, indicating an increase of approximately 26.8%[10] - The total value of property, plant, and equipment as of December 31, 2024, was RMB 50,459,844,000, with a net book value after depreciation of RMB 48,928,386,000 as of December 31, 2023[70] - The company’s long-term weighted average cost of capital used for cash flow projections was between 10.00% and 17.49% as of December 31, 2024, compared to 9.54% to 14.37% in the previous year[76] Revenue Breakdown - The contribution from a major customer, China National Offshore Oil Corporation and its subsidiaries, accounted for 77% of total revenue in 2024, down from 81% in 2023[34] - The company’s segment performance showed a significant increase in drilling services, with revenue rising to RMB 13,206,949 thousand in 2024 from RMB 12,051,135 thousand in 2023, a growth of approximately 9.6%[31] - The breakdown of revenue by service segment for 2024 shows drilling services at RMB 12,040,451 thousand, technical services at RMB 27,577,875 thousand, ship services at RMB 4,686,792 thousand, and survey services at RMB 2,670,169 thousand[36] - Domestic revenue accounted for RMB 37,223,351 thousand, while international revenue was RMB 9,751,936 thousand, indicating a domestic revenue increase of 8.3% and an international revenue increase of 16.5% year-over-year[36] Operating Expenses - Total operating expenses for 2024 were RMB 43,497.6 million, an increase from RMB 39,496.7 million in 2023, reflecting a rise of approximately 10.4%[6] - Employee compensation costs, including salaries and bonuses, rose to RMB 5,920,944 thousand in 2024 from RMB 5,892,401 thousand in 2023[52] - The total income tax expense based on the actual tax rate for 2024 was RMB 1,268,236,000, representing 27.2% of pre-tax profit, up from RMB 960,240,000 or 22.6% in 2023[58] Capital Expenditures - Capital expenditures for the year totaled RMB 7,320,408 thousand, a decrease from RMB 9,746,013 thousand in 2023, indicating a reduction of about 25%[30] - The capital expenditure in the drilling services segment decreased by 36.4% to RMB 3,923.5 million, while the oilfield technology services segment saw a decrease of 5.6% to RMB 2,624.7 million[192] Strategic Initiatives - The company plans to continue expanding its services in international markets, particularly in the Middle East and Indonesia, to diversify its revenue sources[32] - The company is focusing on expanding its international market presence, particularly in high-value overseas projects, to enhance its industry control capabilities[112] - The company is committed to enhancing its integrated service capabilities and promoting green low-carbon development as part of its strategic initiatives[194] Market Outlook - The global economic growth forecast for 2024 is 3.2%, with oil prices expected to remain volatile due to supply and demand dynamics[108] - The global oilfield services market is expected to grow by 2.2% in 2025, driven by a recovery trend despite challenges in the oil market[195]