Hong Kong · Delayed Price · Currency is HKD China Oilfield Services Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw strong profit growth, with operating profit up 22% year-on-year and Well Services margins rising. FX losses and Middle East instability present risks, but new contracts and market expansion in Central Asia support a positive outlook.
Fiscal Year 2025
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Significant technology-driven growth and international expansion drove record profitability, with the technology segment contributing 55% of revenue and 72% of profit in 2025. Debt optimization and increased R&D spending supported competitiveness amid geopolitical and currency volatility.
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Revenue and net profit grew 3.5% and 31.3% year-over-year, respectively, with strong drilling and vessel segment performance. Effective tax rate normalized, finance costs dropped, and technical services outperformed global peers despite a challenging market.
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Net profit rose over 20% year-on-year in H1 2025, driven by strong drilling services and higher overseas daily rates. Well services saw a revenue and profit decline due to domestic and international factors, while the company completed a $1B bond repayment and continues to invest in innovation.
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Q1 2025 saw high capacity utilization and strong workload growth, especially in drilling and well services, with profit growth outpacing revenue due to lower interest expenses and improved Norway results. Daily rates remained stable overall, and the company expects continued high performance and prudent risk management.
Fiscal Year 2024
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2024 saw 10% revenue and 4% net profit growth, with strong performance in technology and marine support segments. Dividend payout increased, debt ratio improved, and all suspended platforms were redeployed. 2025 expects high domestic workload and rising overseas contracts.
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Revenue for the first three quarters of 2024 rose 14.1% year-over-year to CNY 33.66 billion, with net profit up 7.2%. Technical services led growth, while weather and FX losses impacted Q3. Overseas expansion, especially in Norway and Brazil, is expected to drive future gains.
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Operational progress in H1 2024 was driven by technology and cost strategies, with well service revenue up 20% year-over-year. Income tax spiked due to one-off factors but is expected to normalize, while CapEx and debt optimization remain key focuses.