Huaxin Securities·2024-04-17 23:30Investment Rating - The report assigns a "Buy" rating for CNOOC Services (601808.SH) [2][4]. Core Insights - The oil service industry is experiencing a recovery, driven by increased upstream exploration and development spending, leading to significant performance improvements for the company [2][3]. - The company is positioned to benefit from high oil prices and energy security initiatives, with a focus on enhancing its integrated service offerings across the oilfield lifecycle [3][4]. - The company has made strides in international expansion, achieving a 50.9% year-on-year increase in overseas revenue, with new contracts contributing to growth [3][4]. Summary by Relevant Sections Company Overview - CNOOC Services is the largest offshore oilfield service provider in China, with a comprehensive service chain covering exploration, development, and production stages [11][12]. - The company operates a significant fleet of drilling platforms, including 36 self-elevating and 12 semi-submersible rigs, providing a wide range of drilling and support services [12][38]. Financial Performance - In 2023, the company reported revenues of 441.09 billion yuan, a year-on-year increase of 23.7%, with net profit rising by 28% to 30.13 billion yuan [18][22]. - The revenue breakdown shows that oilfield technology services and drilling services are the primary sources of income, with respective growth rates of 31% and 17% [18][22]. Market Trends - The global oil service industry is benefiting from rising oil prices, which are expected to remain high due to ongoing demand and geopolitical factors [24][26]. - The report anticipates that global upstream exploration and development capital expenditures will exceed $600 billion in 2024, marking a 5.7% increase from 2023 [28][31]. Drilling Operations - The company has seen a recovery in drilling operations, with a 6.0% increase in operating days for drilling platforms in 2023, totaling 17,726 days [40][44]. - Daily rates for semi-submersible and self-elevating platforms have increased significantly, with respective rates of $133,000 and $74,000, reflecting a year-on-year growth of 16.7% and 7.2% [40][44]. Future Outlook - The company is expected to continue benefiting from high oil prices and increased capital expenditures in the oil and gas sector, with projected revenues of 488.86 billion yuan in 2024, growing to 640.8 billion yuan by 2026 [4][28]. - The company aims to enhance its international presence and capitalize on new contracts, despite facing short-term challenges in specific regions [3][4].