中海油服20240508

Summary of Conference Call Notes Company and Industry - The conference call pertains to CNOOC Services (中海油服), a company involved in the oil and gas services industry, particularly focusing on exploration and development services. Key Points and Arguments 1. Contract Strategy: The company will actively seek new contracts rather than waiting for 12 months if existing contracts are paused. If no new contracts are found by year-end, the original contracts will be completely voided [2]. 2. Global Operating Costs: Overall global operating costs have increased, with significant variations in daily rates across different regions. Higher oil prices have led to noticeable increases in average daily rates in many areas [2]. 3. Revenue Contribution: The technology segment is currently the primary contributor to the company's revenue and profit, indicating a shift towards more specialized services [2]. 4. Operating Fee Growth: The company's operating fees are expected to grow by over 20% year-on-year due to new domestic platforms that have achieved higher daily rates [2]. 5. Investment Impact: Increased investment from CNOOC is expected to have a positive impact on the company's operational volume and growth, although it may not directly translate to higher daily rates for platforms [2]. 6. K3S Orders Stability: K3S orders are anticipated to remain stable at a high level, influenced by national energy strategies and youth action plans [2]. 7. Technology Segment Focus: The company aims to enhance the technology segment's contribution to reflect industry trends and pursue a light-asset operational model [3][4]. 8. International Market Expansion: The company is committed to expanding its international market presence, targeting regions such as Asia-Pacific, the Middle East, North Sea, and Africa, with a goal of achieving 40% of its business from overseas by 2025 [5]. 9. Capital Expenditure Plans: The company expects high capital expenditures in the next two years due to platform asset acquisitions, with a potential normalization to around 4-5 billion RMB by 2025 [5]. 10. User Cycle Outlook: The user cycle has been on an upward trend since 2022, with expectations for this cycle to last at least five more years, although external factors like pandemics and wars could impact this outlook [5][6]. 11. Deepwater Operations: The company possesses the necessary equipment technology and management reserves for deepwater operations, including high-temperature and high-pressure technologies [6]. 12. Long-term Contracts: The company typically signs long-term lease contracts with stable clients to mitigate the impact of oil price fluctuations on leasing costs [7]. 13. Market Opportunities: Future market exploration will focus on traditional markets like Asia-Pacific, the Middle East, North Sea, and Africa, while also considering emerging markets such as South America, particularly Brazil [8]. Other Important Content - The company is enhancing its technology development based on actual customer needs and market potential, which serves as a significant driver for innovation [4]. - There is a notable increase in high-end subcontracting, with approximately 30-40 billion RMB involved last year [4]. - The company is also exploring flexible approaches to manage rising daily rental fees, including transitioning to a free leasing model [7].