China Oilfield Services (2883) Q1 2026 earnings summary

Executive summary

• Delivered robust Q1 2026 performance, with revenue up 4.6% year-over-year to RMB11,296.3 million and strong operational results across core segments.

• Total profit rose 2.4% to RMB1,155.9 million, but net profit attributable to shareholders declined 3.6% to RMB855.7 million; excluding non-recurring items, net profit dropped 12.9%.

• Maintained a dual circulation strategy, leveraging both domestic and international markets while navigating geopolitical volatility and oil price fluctuations.

• Enhanced value-oriented operations, cost control, and technology capabilities to address external challenges.

Financial highlights

• Q1 2026 operating profit reached CNY 1.53 billion, up 22% year-on-year, while operating profit was RMB1,167.4 million, down from RMB1,241.2 million a year ago.

• Well Services revenue was CNY 6.07 billion, up 5% year-on-year; net margin was CNY 1.11 billion, up 18%.

• Total assets increased 2.3% from year-end 2025 to RMB86,438.1 million; equity attributable to shareholders rose 2.0%.

• Finance expenses included CNY 303 million in exchange losses and finance costs increased to RMB427.1 million from RMB172.3 million year-over-year.

• Net cash flows from operating activities remained negative at RMB-2,278.4 million.

Outlook and guidance

• Expectation of increased operational volume and CapEx aligned with China's energy security strategy and client needs.

• Ongoing monitoring of CapEx adjustments and forecasts by major clients like CNOOC.

• Plans to scale up business in the Middle East and Central Asia, including new contracts and market entries.

• The company aims to strengthen core competitiveness and high-quality development through systematic management and technological innovation.