China Oilfield Services (2883) Q1 2025 earnings summary

Executive summary

• Maintained strong operational performance across all segments in Q1 2025, with high capacity utilization and robust workload, especially in drilling and well services.

• Revenue for Q1 2025 reached RMB10,797.5 million, up 6.4% year-over-year; net profit attributable to shareholders rose 39.6% to RMB887.2 million.

• Operating profit increased to RMB1,241.2 million, a 24% rise compared to the same quarter last year.

• Continued focus on technological innovation, cost control, and integrated service offerings to support both domestic and international growth.

• The company focused on expanding high-potential markets, optimizing resource allocation, and advancing intelligent equipment and low-carbon technology.

Financial highlights

• Net profit excluding non-recurring items was RMB960.2 million, up 46.4% year-over-year.

• Drilling services segment reported an 11% year-on-year increase in workload days, driven by new equipment in China and increased contribution from Norway.

• Interest expenses increased by RMB 17 million year-on-year due to prior debt repayments, but overall profit growth outpaced revenue growth.

• Net cash outflow from operating activities was RMB2,288.2 million, compared to RMB835.0 million outflow last year, mainly due to timing of receivables.

• Basic and diluted EPS both rose 46.2% to RMB0.19 per share.

Outlook and guidance

• Gross profit for well services expected to remain at a high level, similar to last year.

• Capacity utilization anticipated to stay high for the remainder of 2025, with normal operations and some short-term equipment maintenance.

• R&D expenses projected to see a slight year-on-year increase for the full year.

• Daily rates for drilling services expected to remain stable with positive trends, especially for semi-submersible rigs overseas.