China Oilfield Services (2883) H1 2025 earnings summary

Executive summary

• Net profit grew 21.5% to RMB2,076.8 million in H1 2025, with revenue up 3.5% to RMB23,295.1 million and profit before tax up 6.8%.

• Operational efficiency and platform utilization rates improved, reaching 91.2%, with cost profit margins rising.

• International expansion advanced, with contract wins in the Middle East, Asia Pacific, Europe, and Thailand, and improved overseas operational capabilities.

• Technological innovation and digital transformation accelerated, including commercialization of new seismic and drilling technologies.

• The company maintained high-quality growth despite volatile oil prices and global economic uncertainty, focusing on value creation, lean management, and innovation.

Financial highlights

• Operating profit rose 8.0% to RMB2,908.6 million, with EBITDA at RMB6.48 billion (+10% yoy) and EPS at RMB0.41 (+24% yoy).

• Marine support services revenue increased 19.8% to RMB2,606.0 million, and drilling services revenue rose 12.8% to RMB7,231.4 million.

• Asset-liability ratio stable at 45.9%, gearing ratio improved to 38%, and cash and cash equivalents reached RMB7,108.0 million.

• Basic earnings per share increased to RMB0.41 from RMB0.33 year-over-year.

• Capital expenditure for H1 2025 was RMB2,521.0 million, down 1.3% year-over-year.

Outlook and guidance

• Oil prices are expected to remain volatile and lower in H2 2025, with oil company capex likely to shrink and global upstream spending forecasted to decrease by 4% year-over-year.

• Deep-sea oilfields and CCUS services are identified as new growth drivers amid weak demand for traditional oilfield services.

• The company will focus on technology-driven, cost leadership, and integrated international growth, leveraging new equipment and digital transformation.