Anton Oilfield Services Group (3337) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB2,176.3 million, up 15% year-over-year, with profit attributable to equity holders at RMB105.9 million, an 8.2% increase, and net profit at RMB111.6 million, up 7.9%.

• Overseas business, especially Iraq, drove growth, with Iraq revenue up 25.4% and overseas accounting for 69.4% of total revenue.

• Major milestone achieved with a 25-year oilfield operator contract for Iraq's Dhufriyah, marking the first operator role and a new business model.

• Free cash flow improved to RMB197.2 million, up 15.1% year-over-year, and cash flow from operations was RMB345.7 million.

• Recognized for ESG performance, included in S&P's Sustainability Yearbook 2024, the first for a Chinese oilfield services company.

Financial highlights

• Operating profit rose 10.2% to RMB306.2 million, with a margin of 14.1%; gross profit was RMB658.6 million, gross margin 30.3%.

• Cash and bank deposits totaled RMB2,216.0 million at period end, up RMB147.7 million from year-end 2023.

• Gearing ratio improved to 53.9% from 55.7% at year-end 2023.

• Dividend payment of RMB39 million for 2023 was made in May 2024; no interim dividend declared for H1 2024.

• New orders exceeded RMB4.8 billion, setting a new H1 record; order backlog reached RMB12.69 billion as of June 30, 2024.

Outlook and guidance

• Focus on global market expansion, digital transformation, and asset-light business models.

• Plans to upgrade green energy services and pursue long-term oilfield management projects.

• Management anticipates maintaining over 15% revenue growth for the year, with long-term growth above 30% in normal market conditions.

• Emphasis on cash flow management, cost control, and building a global talent pool.

• No interim dividend declared for H1 2024.