China Oilfield Services (2883) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 reached RMB22,496.7 million, up 19.3% year-over-year, with net profit at RMB1,709.6 million, a 17.4% increase from the prior year.

• All major business segments—drilling, well services, marine support, and geophysical acquisition—achieved double-digit revenue growth, driven by increased market activity, technological innovation, and expansion in both domestic and overseas markets.

• Strategic focus on technology-driven, cost leadership, integration, internationalization, and regional development continues to drive performance.

• The company emphasized sustainable operations, balancing economic, social, and environmental goals, and delivering high-quality services to domestic and overseas clients.

• Overseas revenue in equipment and technology segments saw compound annual growth rates of 37% and 26% over three years, respectively.

Financial highlights

• Operating profit rose to RMB2,692.0 million, up 36.6% year-over-year; EBITDA reached RMB5.89 billion.

• Total profit was RMB2.41 billion, up 29.5% year-over-year.

• Basic earnings per share increased to RMB0.33 from RMB0.28 in the same period last year.

• Net cash from operating activities was RMB1,714.2 million, and cash and cash equivalents stood at RMB8,037.5 million at period end.

• Capital expenditure for the period was RMB2,555.2 million, up 37.8% year-over-year.

Outlook and guidance

• Global oilfield services market is expected to continue expanding, with steady growth in upstream investment and increasing demand for integrated, technology-driven services.

• The company plans to enhance R&D, expand its business scope, and further optimize its industrial and technology chains.

• Global crude oil supply expected to remain tight in H2 2024, with Brent prices projected at $80–90/bbl.

• Upstream CAPEX to continue rising, especially in unconventional offshore and onshore exploration.

• Focus on enhancing digitization, international business capabilities, and technology iteration aligned with oil and gas supply.