China Oilfield Services (2883) Q3 2024 earnings summary

Executive summary

• Operating revenue for the first three quarters of 2024 reached CNY 33.66 billion, up 14.1% year-over-year.

• Net profit attributable to shareholders was CNY 2.637 billion, up 7.2% year-over-year; another report states CNY 2.4447 billion, up 7.5%.

• The company focused on international market expansion, technology innovation, integrated project development, and building long-term relationships with high-end clients.

• Operating performance improved steadily, with total profit up 15.8% year-over-year to CNY 3.6467 billion.

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

Financial highlights

• Q3 2024 revenue was CNY 11.133 billion, up 4.7% year-over-year.

• Net profit rose 7.2% year-over-year for the first three quarters, but Q3 net profit declined 8.8% year-over-year.

• Net cash flows from operating activities for the first three quarters were CNY 5.118 billion, up 20.1% year-over-year.

• Foreign exchange loss of about CNY 200 million in Q3 due to RMB appreciation against USD.

• Basic and diluted EPS for the first three quarters were CNY 0.51, up 6.3% year-over-year.

Outlook and guidance

• Overseas market revenue and profitability expected to improve in 2025, driven by new projects in Norway and Brazil and recovery in Saudi Arabia.

• Industry outlook for oil and gas exploration and development remains stable with moderate growth in investment.

• Optimism for stable or rising rig utilization rates in Q4 and beyond as weather and operational disruptions subside.

• Long-term contracts for overseas rigs expected to cover operations through 2026–2027, supporting stable growth.

• Continued growth expected by leveraging international market opportunities and integrated, high-value projects.