China Oilfield Services (2883) H2 2025 earnings summary

Executive summary

• Achieved stable and improving financial performance in 2025, with all major profitability indicators up year-over-year and revenue reaching RMB50,210.8 million, a 4.1% increase.

• Net profit rose 19.4% to RMB4,059.9 million, with profit before tax up 9.6% to RMB5,113.8 million and EPS increasing 23% to RMB0.81.

• Growth was driven by higher drilling rig utilization, expansion in high-end and overseas markets, and cost optimization, despite a challenging global oil price environment.

• Technology-driven and cost leadership strategies, along with increased R&D investment, strengthened competitiveness and client value creation.

• All four business segments contributed, with drilling and marine support services showing the strongest revenue growth.

Financial highlights

• Operating revenue reached RMB 50.28 billion, up 4% year-over-year, and operating profit increased 17.2% to RMB5,917.7 million.

• Net profit margin and return on equity improved, with EBITDA at RMB13.07 billion and ROE at 8.9%.

• Basic earnings per share rose to RMB80.51 cents from RMB65.74 cents.

• Final dividend proposed at RMB0.2825 per share, totaling RMB1,348.0 million.

• Cash and cash equivalents increased to RMB7,463.0 million.

Outlook and guidance

• 2026 capital expenditure is budgeted at RMB8.44 billion, focusing on equipment upgrades, technology, and international expansion.

• Remain cautiously optimistic about oil price trends for 2026, with no major changes to internationalization strategy despite geopolitical volatility.

• The company expects stable demand in offshore oilfield services, with growth in deep-water, digital, and low-carbon services, and aims to strengthen its position in high-end and overseas markets.

• Focus on knowledge-based development and deepening reforms in the 15th Five-Year Plan.

• Global upstream exploration and development expenditure projected to grow at a 5.5% CAGR over the next five years.