COSL(SH:601808) Southwest Securities·2024-04-26 08:00Investment Rating - The report maintains a "Buy" rating for CNOOC Services (601808) [1] Core Views - The company reported strong performance in Q1 2024, with revenue of 10.15 billion yuan, a year-on-year increase of 20.0%, and a net profit attributable to shareholders of 640 million yuan, up 57.3% year-on-year [2] - The company benefits from its full industry chain advantages, with significant growth in the drilling segment due to structural adjustments in high-day-rate platforms [2] - High oil prices are driving capital expenditure growth, with the offshore oil and gas sector expected to remain buoyant [2] - The company is projected to achieve net profits of 4.0 billion, 5.03 billion, and 5.64 billion yuan for 2024-2026, with a compound annual growth rate of 23.2% [2] Summary by Sections Financial Performance - Q1 2024 revenue reached 10.15 billion yuan, a 20.0% increase year-on-year - Q1 2024 net profit attributable to shareholders was 640 million yuan, reflecting a 57.3% year-on-year growth - The gross margin for Q1 2024 was 16.4%, up 2.6 percentage points year-on-year, driven by increased overseas platform utilization [2][3] Business Segments - Drilling Segment: Q1 2024 saw a slight decrease in self-elevating platform operating days by 2.6% but an increase of 1.6% for semi-submersible platforms, leading to significant revenue and profit growth [2] - Technology Segment: The company effectively leveraged its technology-driven business strategy, resulting in continuous revenue growth [2] - Vessel Segment: The company operated 172 workboats, achieving 14,227 operational days in Q1 2024, a 3.9% increase year-on-year [2] - Geophysical Segment: Accelerated digital geophysical construction led to a 502.7% year-on-year increase in 3D acquisition workload [2] Market Outlook - The global oil demand is expected to continue growing in 2024, with upstream exploration and development capital expenditure projected at approximately 607.9 billion USD, a 5.7% year-on-year increase [2] - Offshore exploration and development capital expenditure is anticipated to grow by 19.5% year-on-year, benefiting companies like CNOOC Services [2] Earnings Forecast - Projected net profits for 2024, 2025, and 2026 are 4.0 billion, 5.03 billion, and 5.64 billion yuan, respectively, with corresponding EPS of 0.84, 1.05, and 1.18 yuan [3]