China Oilfield Services (2883) H2 2024 earnings summary

Executive summary

• 2024 saw stable and positive development, with improvements in revenue, profit, operational efficiency, and expanding brand influence domestically and internationally.

• Services span all stages of oil and gas exploration, with four major business segments: drilling, well/well service, marine support, and geophysical acquisition/surveying.

• Overseas revenue surpassed RMB 10 billion, accounting for 22.6% of total, up 14.9% year-over-year, reflecting successful international expansion and new regional breakthroughs.

• Technological innovation, integration strategies, and R&D investment drove efficiency and business growth.

• Focus on cost leadership, lean management, and asset-liability optimization.

Financial highlights

• 2024 revenue reached RMB 48.3 billion, up 10% year-over-year; net profit was RMB 3.4 billion, up 9% year-over-year.

• Technology/well service segment revenue grew 7% to RMB 27.7 billion, accounting for 57% of total revenue and nearly 90% of profit.

• Marine support segment revenue grew over 20% in the second half, with improved vessel utilization and profit margins.

• Basic earnings per share rose to RMB 0.66.

• Dividend payout ratio increased to 35.02%; total dividend rose 9.5% to RMB 1.1 billion.

Outlook and guidance

• 2025 domestic workload expected to remain high, supported by CNOOC's CAPEX budget of RMB 125–135 billion.

• Overseas new contract value in 2025 is expected to rise significantly, with global E&P investment projected to increase.

• 2025 capital expenditure is budgeted at approximately RMB 7.2 billion, focused on equipment upgrades, R&D, and infrastructure.

• Strategic focus on technology-driven growth, cost leadership, integration, internationalization, and regional development.

• Plans to increase investment in overseas markets, product sales, and high-temperature/high-pressure equipment to enhance technology segment scale and profitability.