Summary of the Conference Call for CNOOC Services Industry Overview - The conference call primarily discusses the performance and outlook of the offshore oil services industry, particularly focusing on CNOOC Services. Key Points and Arguments Financial Performance - For the first three quarters of 2025, the company reported a revenue of RMB 34.854 billion, representing a year-on-year increase of 3.5% [3] - The net profit attributable to shareholders reached RMB 3.209 billion, with a year-on-year growth of 31.3% [3] Segment Performance - **Drilling Segment**: - Achieved significant improvements in operational efficiency through lean management and resource optimization, with calendar day utilization increasing by over double digits year-on-year [2][3] - Revenue saw a substantial increase, indicating enhanced market competitiveness [2] - **Technology Segment**: - Expanded its technical system towards demand and application ends, with a year-on-year increase in operational volume across major business lines [2][3] - **Vessel Segment**: - Consolidated domestic market share with a total of 9,427 additional operating days year-on-year, showing a revenue growth rate close to 10% [2][3] - **Tungsten Carbon Segment**: - Focused on high-return businesses and optimized capacity layout, achieving year-on-year growth in both revenue and profit [2][3] Market Conditions - The domestic drilling platform workload is fully utilized with no idle capacity, and a stable supply-demand balance is expected to continue in the coming years, providing a solid market demand and profit outlook [2][9] - In the overseas market, the day rate for semi-submersible platforms in the North Sea exceeds USD 300,000 per day, with contracts extending to 2030, contributing significantly to revenue and profit [2][10] Debt Management - The company effectively reduced interest expenses by repaying maturing USD debts, which lowers financial risk and creates favorable conditions for future profit growth [2][16] Future Contracts and Pricing - The framework agreement for the next three years is still in progress and is expected to be approved in December, focusing on work processes and service content rather than specific workload and pricing [4] - The pricing is anticipated to remain relatively stable in 2026 compared to 2025 [4] New Contracts and Market Trends - New contracts for drilling platforms are primarily concentrated in the Asia-Pacific region, with no particularly satisfactory long-cycle, high-yield contracts signed this year [8] - The oilfield technology service segment saw an increase in new orders, especially in the Middle East, Iraq, and North America, with a notable rise in contract volume despite smaller amounts [14][15] Technological Advancements - The company is advancing in smart and digital applications, including intelligent drilling platforms and smart oilfield construction, enhancing operational efficiency and effectiveness [17] Taxation Issues - The company is actively engaging with local tax authorities in Mexico to mitigate tax risks and improve internal management to lower overseas tax liabilities [18] Additional Important Information - The company’s "15th Five-Year Plan" aims for leapfrog development with clear annual targets to continuously explore potential and achieve higher operational goals [12] - The oilfield technology service segment's overall revenue and profit remained stable with slight declines due to changes in business calculation models [13]

Core Viewpoint - The company reported a significant increase in net profit for Q3 2025, exceeding market expectations, driven by high utilization rates of drilling platforms and reduced financial interest expenses [1]. Group 1: Financial Performance - In Q3 2025, the company's operating revenue reached 11.5 billion yuan, a year-on-year increase of 3.6% [1]. - The net profit attributable to shareholders was 1.25 billion yuan, representing a year-on-year growth of 46% [1]. Group 2: Drilling Platform Operations - The total operating days for drilling platforms in Q3 2025 were 4,878 days, an increase of 16% year-on-year but a decrease of 3% quarter-on-quarter [1]. - Semi-submersible drilling platforms saw a 59% year-on-year increase in operating days, while self-elevating platforms experienced an 8% year-on-year increase [1]. - Utilization rates for self-elevating and semi-submersible platforms were 92.8% and 87.4%, respectively, reflecting increases of 7.9 percentage points and 25.4 percentage points year-on-year [1]. Group 3: Oilfield Technology Services - The company is focused on enhancing its technology-driven capabilities, aiming to develop a core technology system driven by fundamental research [1]. - The oilfield technology services segment maintained year-on-year growth in operating volume for the first three quarters of 2025 [1].

Summary of China Oilfield Services Limited (COSL) Conference Call Company Overview - **Company**: China Oilfield Services Limited (COSL) - **Period**: First three quarters of 2025 Key Financial Performance - **Revenue**: - Total revenue reached RMB 34.854 billion, a year-on-year increase of 3.5% driven by high-value exploration and production services despite fluctuating oil prices [2][3] - **Net Profit**: - Net profit attributable to shareholders increased by 31.3% year-on-year, totaling RMB 3.209 billion [2][3] - **Effective Tax Rate**: - Decreased from approximately 28% in Q1-Q3 2024 to around 20% in mid-2025, attributed to improved operations in Norway and absence of vessel idling issues in Saudi Arabia [2][7][10] Segment Performance - **Drilling Segment**: - Achieved double-digit growth in calendar day utilization rates through lean management and optimized resource allocation [2][4] - **Technical Service Segment**: - Experienced a 3% revenue decrease due to reduced global upstream investment, but profit margins remained above 16% [2][11] - **Vessel Segment**: - Consolidated leading market share domestically with operational days increasing by 9,427 days year-on-year, driving nearly 10% growth in segment revenue [4] - **Non-Carbon Segment**: - Focused on high-return businesses, achieving both revenue and profit growth year-on-year [4] Operational Insights - **Global Operations**: - COSL is focused on maintaining high efficiency in current drilling operations and dynamically adjusting equipment utilization globally [2][6] - **Market Conditions**: - Increased uncertainty in the global energy services market due to fluctuating oil prices, but COSL is meeting demand for increased reserves and production [3] - **Future Projections**: - Anticipates continued upward trends in gross margins into Q4 2025, despite slight revenue declines in Q2-Q3 [2][13] Strategic Focus - **Resource Security**: - COSL aims to ensure resource security for domestic oil and gas reserve increases while emphasizing overseas operational quality and technological innovation [4] - **Overseas Expansion**: - Plans to expand overseas operations, particularly in technical services, through collaboration with global IOC and NOC entities [12][21] - **Debt Management**: - Achieved significant savings in finance costs through active debt management, including repaying $1 billion USD of debt [20] Additional Insights - **Operational Capacity**: - Improved profitability in the online segment indicates near full capacity utilization of North Sea assets [18] - **Contract Growth**: - Locked overseas technical contracts grew nearly 47% year-on-year, with bundled services increasing by 255% [23] - **Systemic Charging**: - Systemic charging has become a trend in mainland China, constituting approximately 50% of operations volume, with minimal short-term impact on profitability [16] This summary encapsulates the key points from the conference call, highlighting COSL's financial performance, segment insights, strategic focus, and operational conditions.

Core Insights - Schlumberger has established its China land services headquarters in Chengdu, with a total investment of 700 million yuan, expanding the scale of its previous base by four times, aimed at enhancing its service capabilities in the Chinese land oil and gas market [1][2] - The new base features advanced infrastructure and core functions such as technical research, equipment maintenance, operation management, and remote support, significantly improving operational efficiency and service capabilities [2] - The project, which started construction in March 2023 and was completed in July 2023, occupies 42 acres with a total building area of over 20,000 square meters, including office buildings, warehouses, and production support facilities [2] Company Development - Schlumberger's relationship with Chengdu dates back to 2002, marking over 20 years of development, including the establishment of a regional base, the registration of Chengdu Limited in 2014, and the recent investment in the land services headquarters [2] - The establishment of the headquarters is expected to support the development of an energy equipment industry cluster in Shuangliu and enhance the technological level in high-end oil and gas and digital exploration in the southwest region [2] Local Government Support - The Shuangliu District is committed to providing comprehensive quality services, strengthening policy measures, resource guarantees, and innovation support to boost Schlumberger's production and efficiency [4] - Chengdu has been optimizing its business environment, with initiatives like the "Enter, Resolve, Optimize, Promote" program for foreign enterprises, which includes providing lifecycle services to support foreign investment [6][8] - From January to August 2023, Chengdu attracted foreign direct investment (FDI) of 1.024 billion USD, ranking first among central and western cities, with manufacturing sector FDI reaching 187 million USD, a year-on-year increase of 42.97% [8]

Group 1: Asset Injection and Business Structure - The company plans to leverage its capital platform to inject quality assets to improve its operational structure, with a focus on mergers and acquisitions in 2025 [2][3] - The company aims to enhance its net asset scale and capital strength through cash acquisitions and share issuance [2][3] Group 2: Cash Flow and Financial Health - In 2024, the net cash flow from operating activities was 89.79 million CNY, a significant improvement of 503.53% compared to -22.25 million CNY in 2023 [4] - Operating cash flow covered capital expenditures of 26.71 million CNY, indicating healthy cash flow management [4] - The company incurred financing cash outflows of 124.56 million CNY but supplemented this with new borrowings of 145.30 million CNY, resulting in a net cash flow of 20.74 million CNY [4] Group 3: Cost Control Measures - Operating costs increased by 25.33% to 330.97 million CNY in 2024, primarily due to business volume growth [5] - Labor costs rose by 13.76% to 98.10 million CNY, but their proportion of operating costs decreased from 32.65% to 29.64% [6] - The company achieved a 47.68% increase in labor and leasing costs, reflecting the expansion of third-party service needs [6] Group 4: Order Acquisition and Revenue Forecast - As of March 31, 2025, the company had orders on hand worth 94.99 million CNY and new orders of 264.44 million CNY, indicating a positive revenue outlook for 2025 [6][7] - The company anticipates continued revenue growth in 2025 compared to 2024 [6][7] Group 5: Research and Development - In 2024, the company focused on new processes and technologies in oilfield services, resulting in the acquisition of 1 invention patent and 8 utility model patents [7] Group 6: Financial Performance and Risks - The company reported a net loss of 15.74 million CNY in 2024, primarily due to low gross margins influenced by industry factors [8] - The asset-liability ratio stood at 83.21%, with interest-bearing debt at 125.30 million CNY, indicating manageable debt levels [11] - Major risks include industry concentration, policy changes, and oil price fluctuations, with strategies in place to mitigate these risks [12]