Earnings Call: H1 2012

Aug 22, 2012

Dear friends of the investment community, good morning. Welcome to the presentation on 2012 interim results of China Oilfield Services Limited. First of all, let me introduce to you the speakers on the stage today. Mr. Liu Jian, Chairman of the company. Mr. Li Yong, CEO and President. Mr. Li Feilong, EVP and CFO. Mr. Yang Haijiang, Company Secretary. Now, I would like to pass the time to Mr. Li to walk you through the company's results. Mr. Li, please. Thank you. Ladies and gentlemen, good morning. Thank you for your coming. I know it is raining outside. My presentation today will be divided in two parts. Firstly, I will share with you our results performance in the first half of 2012. Then we move on to prospects, of course, in future. During the first half of 2012, COSL achieved satisfactory results by capturing market opportunities, effectively integrating external and internal resources, optimizing our equipment structure, and striving to operate new equipment at full capacity. We achieved steady and healthy record in our QHSE score, increased certainty of safe production, and made solid achievements in technology development. The four business segments achieved stable operations. The company's integrated competitiveness has been strengthened further. Now, let me walk through our results in the first half of 2012. Benefiting from full capacity utilization in both domestic and overseas operations, as well as commencement of operations of new equipment, the group's revenue for the 6-month period ended June 30, reached RMB 10 billion, up 23% year-on-year. Meanwhile, the operating profit margin slightly declined to 29.5% due to cost pressure. Operating profit reached RMB 2.95 billion, up 13.1% year-on-year. Profit attributable to shareholders surged 15.8% year-on-year to RMB 2.4 billion. Basic earnings per share were RMB 0.53. At the end of June 2012, our total assets were further enhanced to RMB 66 billion. Shareholders' equity was up 5.7% year-on-year to RMB 30 billion. COSL's balance of cash and cash equivalents surged by 33%, and our capital structure were further improved. COSL's financial risk has been further reduced as our gearing ratio declined to 54.5%, and the net debt to equity ratio down to 68.5%. COSL's competitiveness continued to be enhanced due to the effectiveness market expansion. COSL proactively stay abreast of its clients' needs in exploration, and deploy equipment appropriately with an aim to enhancing service quality in offshore China, so as to further consolidate our leading position and market share in China waters. Our deepwater business commenced operation smoothly. Revenue from the domestic market reached RMB 6.85 billion in deepwater business. In international markets, our drilling, well service, as well as geophysical segment, all experienced expansion. We have deployed high-spec equipment in international markets and won a number of drilling contracts. Our international markets revenue increased by 40% year-on-year to RMB 3.16 billion. Contributing to 32% of total revenue. With our expansion in the new markets, we achieve better economics of scale in regional markets, while we continue to deliver high-quality service from the four module rigs in Gulf of Mexico. Our jackup drilling rigs, COSL Confidence and Haiyang Shiyou 936, won long-term operation contracts in the same area. We expand further into Indonesia with diversified client base with our jackup drilling rig, COSL Force, won contract to provide service for BP. In addition to heavy equipment, our well service also made progress in international markets with stronger capacity in self-developed technologies. The well service provided to Missan Oilfield in Iraq has start operation. In geophysical segment, we proactively expand into international markets to boost the utilization rate of large-scale equipment during domestic low seasons in winter. With a batch of deepwater equipment put into use, COSL's deepwater business commenced operations officially in China offshore. Execution of deepwater contracts is one of the challenges COSL faced in the first half of 2012. Thanks to the adequate preparation done early, all deepwater projects have been well-executed during this period. COSL has capabilities in operating and managing deepwater equipment, such as Haiyang Shiyou 981, Haiyang Shiyou 720, and 708. Its operations efficiency and performance, as measured by numbers of indicators, have been well-recognized by its customers. Our drilling capability was enhanced with operational depth increased from 500 meters to 1,500 meters. In addition, COSL Pioneer was named Rig of the Month by Shell Oil due to its excellent operations, quality, and efficiencies among the 29 drilling rigs operating in North Sea waters. QHSE is one of the most important tasks for COSL. During the period, our overall performance on safe production remained stable, with all sides score at a relatively lower level. We further enhanced the quality of QHSE system by improving our response to emergencies and promoting environment protection and emission reduction. Meanwhile, with the expansion of our international business, COSL, as an international citizen, has been proactively increased its participation in charity and public welfare activities. We further strengthen our investment in science and technology research to enhance our R&D capability. We have achieved satisfactory results. By end June, we have a number of 409 patents. These are 10% increase in numbers of authorized patents in use from end December last year. As a high-technology enterprises, our research funding is based by fiscal budget appropriation from government, CNOOC, and our own capital. Our research is to tackle the difficulties that strict operations meet demands of our important clients, develop technologies associated with well service, and enhance our capabilities in self-development technologies. I show here high-precision seismic exploration technology, logging equipment, and the rapid logging equipment are the examples of successful industrialization of our self-developed technologies. After reviewing the overall business situation for the first half of 2012, let's move on the equipment portfolio by business segments. As an integrated oilfield service providers, the equipment capability in our 4 segments all achieved growth during the first half, especially in the drilling and geophysical segments. For the drilling segment, we add 2 semi-submersibles and the offshore commencement of operation of Haiyang Shiyou 981, which is operated and managed by COSL. For the geophysical segment, we add 1 deepwater survey vessel, Haiyang Shiyou 708, and 1 OBC team. Now, let's take a detailed look into performance of the 4 segments. The drilling segment was still the biggest driver among the 4 segments, with revenue and operating profit contributions of 53% and 68%, respectively. Well service ranked second in terms of revenue contribution. Its contribution to profit maintained the same level at 11%. As operation volume and capability continue to increase, revenue derived from the four segments, revenue grew 16%-25% on average. However, due to the rising fleet costs and additional charter costs, all segments recorded slower growth in operating profits except for the drilling segment, which saw operating profit growth faster than revenue. In the next few slides, we will look into the details of each segment. For the drilling segment, harsh spec jackups and semi-submersibles record outstanding performance in terms of contract wins, and further widen the gap from traditional low-spec drilling rigs. Under these circumstances, on one hand, COSL continue to strengthen its leading position in offshore China. On the other hand, we further improve its influence and competitiveness. The main driver of our rapid growth in revenue and profit for the drilling segment is high utilization rate and new equipment that add more operation days at a higher day rate on average. The new equipment includes four 200-feet jackup rigs and semi-submersibles COSL Pioneer and ultra deepwater semi-submersible, Haiyang Shiyou 981. Utilization rates increased for COSL Seeker, COSL Confidence, and four module rigs in equipment portfolio. Calendar day utilization rate rose 2.2 percentage points, while available day utilization rates was close to 100%. With higher contribution from harsh spec and deepwater drilling rigs, the average daily rate of our drilling fleet increased 13.8% to $140,000 per day. For well service segment. For the first half of 2012, the segment record a higher growth from the same period last year. Currently, the company developed new markets and business to provide service with higher value adds and enter into deepwater and non-conventional markets. As a result, this segment achieved a 24.4% increase in revenue from the same period last year. On the other hand, to fulfill demands in the market, certain projects were outsourced, thus lowered the profit margins of the segment. Marine Support and Transportation. Due to vessels being written off, upgraded, and modified, there were five fewer vessels in our fleet, lowering the calendar day utilization rate to 91%. The number of operation days achieved by 8.3%. During the first half, although we faced strong market demand in offshore China, competition within the industry was further intensified. Under such a situation, we differentiate ourself by investing in and commissioning construction of high-spec and high-horsepower utility vessels. As for the lower spec and the more conventional equipment facing the shortage of resources, we should charter more vessels from the third parties to maintain our market share. As the total number of vessels COSL manage and operates increase, revenue for this segment achieve growth while due to a decline in numbers of self-owned vessels and increases in business performed by charter vessels. Segment profit decline from the last corresponding period. Geophysical segment. New and high-spec equipment significantly improve capacity and operation efficiency. Our total number of streamers reach 38, which greatly increase our capability and efficiency in geophysical operation. Significant growth was achieved in 3D data collection and processing volume. Apart from increase in capacities, we apply strong region collection model for the first time, which enhance efficiencies and lower operating costs for our customers, achieve a win-win scenario. As demand for geophysical services continue to increase, we are currently under-equipped. In order to maintain our leading position in the offshore market in China and secure our existing and some business in this segment. At the same time, costs for the raw materials, maintenance, and the staff, all recorded increase, which lowered operating profit for this segment. Let me share with you the business outlook for COSL. Due to the uncertainties in the macroeconomy, most third-party organizations forecast that crude oil prices will remain volatile in the short term. EIA forecasts the global demand for oil will increase slightly and will achieve an equilibrium in demand and supply by 2013. Based on the figures from them, contribution from deepwater and non-conventional sources will continue. From the figures showing global capital expenditure, we can see that China and the Americas show the strongest capital expenditure in global oil and gas exploration and production. North America focuses more on shale gas and Canada on oil sands. From the figures, we can see that Russia, Brazil, Australia, Europe, and West Africa show strong efforts in promoting global oil and gas exploration and production. On the other hand, deepwater and non-conventional business contribution takes up almost half of the world's capital expenditures in this sector. Against the backdrop of double-digit growth in global oil and gas CapEx, the global drilling markets, especially high-spec drilling rigs, will maintain good recovery momentum. The charts here show the day rate and utilization rate of global jackups and semis in the next two years. Generally, the number of jackups with contract coverage as well as the utilization rate has bottomed out from the lowest reach in 2009. The utilization rate of high-spec jackups has rebounded to 90% or above, and its day rate has differentiated itself from those low-spec periods. Meanwhile, with the important discoveries in Brazil, Gulf of Mexico, Western and Eastern Africa, and North Sea, the global demand for semis is experiencing shortage. As the utilization rate remains at a high level, it is expected that day rates will remain high. Our CapEx for 2012 is expected to be above RMB 4 billion. In following years, our CapEx is mainly used to construct and acquire high-spec and deepwater-related equipment. We are aiming to achieve a balance of investments which are driven by market demand. According to COSL's financial position at the moment, our cash flow is able to support daily operations as well as our capital expenditure, even without active financing. In recent years, COSL has been continually optimizing its equipment structure, which saw a gradually increased size of the equipment portfolio with significant boosts in performance, structure, and efficiency. Looking ahead, we will continue our efforts in optimizing equipment to enhance our competitiveness for stable and sustainable growth. For the newly delivered and upcoming equipment, we have already confirmed their contracts. The above table shows our contract status for your perusal. Most domestic offshore contracts are on the calendar year basis, and we are optimistic about the contract coverage for 2012 and beyond. At the same time, following the operation commencement of high-spec semi-submersibles, we expect day rates to increase further. Deepwater exploration is the major development trend for offshore oil fields and will also be a key development area for us to stay in the 12th Five-Year Plan. COSL will work along with CNOOC's deepwater strategy in South China Sea, strengthening capabilities of deepwater equipment, acquiring deepwater technologies, ultimately boosting COSL's comprehensive strength in deepwater exploration and production. With increasing demand from oil companies in South China Sea, COSL is optimistic with subsequent operational arrangements of Haiyang Shiyou 981 and other deepwater equipment for coming two years. Apart from deepwaters in South China Sea, with operation commencement of COSL Innovator in North Sea waters, we are going to expand our business scale in this region, creating economics of scale to enhance our overall profitability. Development of well services will be a key driver for COSL. With clear positioning and effective business development, we will enlarge our market share in well service segment. In order to boost our market share, COSL is deploying technology and equipment in a bid to address needs from the customers in low permeability oil fields in East China Sea. We also pay close attention to related service in the new area. In addition to the expansion of existing technology, we will continue our efforts in research and acquisition of in-house technologies, such as critical technologies for fracturing of CBM wells. All in all, 2012 will be a year full of challenges and opportunities for COSL. We will strive to overcome challenges ahead of us in achieving stable growth. With that, here comes to the end of my today's presentation. Thank you. Thank you. We have the question and answer session. We have the first question from the gentleman in the middle. Good morning, everyone. It's Scott Darling here from Barclays. Two relatively quick questions. What's the status on your dollar bond issue? Have you got the credit rating, and are you still targeting fourth quarter? If CNOOC does complete its acquisition of Nexen, how will that really change your business in the medium to long term? Thank you. 我是Barclays的Scott。我想问两个简单的问题，一个就是你们的美元的债券，现在的情况是怎么样？有没有评级？会是在今年的第四季度完成吗？另外一个问题，就是这个做好了以后，会对你们在策略方面或者是业务上面有些什么影响？第一个是什么？这是债券的问题。第一个是。 Second question. The second question is it related to CNOOC? Can you repeat your second question again? If CNOOC completes its acquisition of Nexen, how potentially could that change your business or where are you positioned in these areas? 第二个问题是有关我们公司在收购了Nexen以后，我们在业务上面有些什么改变，或者是策略方面有些什么影响。为什么？就是母公司在收购了这个子公司。我来回答第一个问题。我们正在请评级公司对公司进行评级。评级的工作正在进行，可期望会在很快的时间会得到结果。 The company has already appointed a credit company to do the rating and it is expected that the result will be available soon. [Foreign language] 关于CNOOC Limited收购加拿大Nexen这个公司，对公司的影响这个问题。因为这个收购正在按程序进行当中，如果收购成功了，我想对COSL的影响肯定是正面的，因为这样会扩展COSL在海外的一些业务领域，这样我想对COSL无疑是一个非常正面的事件。谢谢。 As for the second question, the acquisition is now in progress. If it goes ahead, if it's completed, it is a positive thing for the company. It is important as well, and it will expand the overseas operations of COSL. Next question. 尊敬的各位领导，你们好，我是野村证券的丁寒之，我有三个问题。第一个就是我算下来，今年上半年的收入，特别是在钻井这块业务的收入是比去年下半年要稍微低那么一点。我想问一下这个原因是在什么方面？我们一条一条问好不好？ OK. The first question from Nomura, for the first half, revenues from drilling has come down slightly. Why is that with you? 今年上半年和去年下半年比，是吧？ Right. 我倒没比过这个数字。 Maybe we count. 我们回去再check一下这个数字，因为没有做对比。还有就是关于海洋石油981的税费，如果用现有的数据来算出来的话，基本上可以算出来981的税费大概是在$500K per day。这个其实已经跟市场价格是差不多的。因为原先的市场预计是981的日费应该是比市场要低一点，因为它今年主要是做一些实验井，所以我就想问一下，算出来这个数字是不是跟实际的日费比较接近的？还是你觉得还有什么其他的？我回答，我们没有公告过981的费率，我也不知道你那个数字怎么算出来的。应该说我们的数据和你所说的这个数据是不一样的。 The day rates that you have mentioned for 981 is different from what we have. We have not announced about the day rates yet, and how it compares to the market. 还有第三个问题，就是关于Nexen的收购对我们的影响。因为Nexen基本上在墨西哥湾和北海都是有比较深海的一些区块，但是我们现在深海的船，如果从jackup来说，是无法在这方面运行的。然后如果从semi-sub来看的话，南海256基本上都是一个浅海的semi-sub，其他的几个semi-sub基本上都是跟Statoil有一个长期的合约。我就想问一下，未来公司如果想在Nexen这方面有一些合作的话，是不是会考虑增加一些新的capacity？然后有没有更多的一些信息可以提供？ I'd like to know more about the acquisition. If the Nexen acquisition goes ahead and is completed, will we have to add capacity? Bearing in mind that Nexen operates in the Gulf of Mexico and North Sea and is basically deep-water operations, and given our contract with Statoil with a tying up of our vessels and our capabilities, will we have to add capabilities if the acquisition is completed? 因为这个收购毕竟还没有完成，我们也看了一下Nexen的资产的组合。我现在不好说我们到底今后有多大的工作量，但是总的来讲，这对我们来讲是一个利好。毕竟油田服务公司为油公司提供技术服务，我们又多了一个机会。那么将来一旦真的收购成功了，我们会评估有多大的需求，是对装备的能力的要求等等这些，还有一些市场的情况，我们会根据需求来决定公司今后在装备建设和技术服务能力上怎么样有针对性地提供一些服务。所以现在目前来讲，我们还很难说我们将来要为它准备一些什么装备。但是总的来讲，公司最近这几年在深水装备的建造和技术储备上做了大量的工作。在中国南海的981的钻井作业也积累了我们的一些实战的经验。实践证明，我们也有能力在深水作业里取得好的业绩。那么这样的一些深水的装备的准备和经验的积累，将来在世界各地的深水我想都是有帮助的。谢谢。 The acquisition is in progress, as I have mentioned. If it is to be completed, it is a positive for the company. First of all, it will present more opportunities for oilfield servicing, and if further it is completed, we will be looking at our equipment capacity and we will also be looking at that in the backdrop of demand from the market, and we will consider further any deployment. For now, to note, in the past couple of years deep-sea equipment, we have done a lot of work in that regard. The 981 South Sea exploration has proven our deep-sea capabilities and we have accumulated the experience, and this will be good. That is, the experience and the capabilities will put us in very good stead for development in the future in deep-sea work. 谢谢。中间这位投资人。你好，Kevin Lian，HSBC。我有两个问题，我们还是一个一个来的话。第一个就是关于在挪威的一个税务纠纷，我想问一下，管理层预计什么时候会有最终的一个结果？然后你们现在估计的话，最大的就可能要补交多少的税？ Shall I ask the first question? This is Kevin from HSBC. About the Norwegian tax dispute, when do you expect the final resolution of that dispute to happen? What would be the tax implications in the base case situation? 就像我们在中报所披露的，关于在挪威的税务纠纷的问题，我们税务跟税务局做过多次的沟通，目前没有新的进展。由于他们也没给我们正式提供过税务金额的这个数据，所以我们在这里也没办法向大家提供这个估计。时间现在也很难来判断，因为税务争议往往要求时间会比较长。 Concerning the tax dispute with Norway, the tax bureau and the company have had numerous discussions, but as of now, there is no official communique as to what the tax implications will be in terms of amount and timing. For tax disputes usually it takes a very long time and it's difficult to estimate at this point as to how long it will take. 我的第二个问题是关于在伊朗的operation。我们看到的是有四条jackup，在接下来六个月是会进入一个contract的option period。我想请问一下，关于在伊朗的计划，公司是准备继续留在伊朗呢，还是准备去别的地区？然后这两种option的话，对于日费的收入会是一个怎样的影响？谢谢。 This is about the Iranian operation. There are four jackups in operation in Iran. In the next six months they will go into the contract operation period will be up. What is the planning for the future? Will they stay in Iran? How would that impact the day rates going forward? 确实，公司目前有四个jackup在伊朗，但是你说的合同结束的时间有点差异。因为按照我们的合同和我们的客户签订的合同的话，我们客户有九个月的选择期，所以不是六个月，可能会更长一点。至于说合同结束以后，这四条船到哪儿去，目前公司在做两方面的工作，一个我们在积极寻找别的地区的市场。当然，你说这个价格有多大的差距，现在因为我们还在找别的合同，所以现在很难给你一个明确的答复。谢谢。 Yes, you are correct in pointing out that there are four jackups in the Iranian area. However, the timing is a little bit different from what you have described. There will be a nine-month elective period before the contract is actually up. When the contract has come to a conclusion, we will be looking at other markets and it's difficult to say at this point as to how that would impact our day rate as we have not determined the market yet. Thank you. Next question, please. 你好，我是高盛严俊涛。我的问题是我看到咱们财务，比如说现金这一块增长了不少，然后债务有所下降，这是一个非常好的事。同时，如果咱们也计划发债的话，那究竟拿这些钱去做什么？是去增加新的产能呢，还是去做更好的收购，在咱们过去成功的并购基础之上？谢谢。 I'd like to know, looking at your cash position, if you want to issue debt, what would be the use of proceeds for acquisitions, purchase of further equipment? Will you be building on your successful acquisition experience or would it be use of proceeds? 你说的对，我们现在的财务状态确实是不错。我们之所以发债，我们是考虑未来，可能未来几年公司进一步的成长。我们发债的目的是为了增加新的产能，因为现在深水的装备，因为大家也注意到整个公司的装备结构并不是太合理，与国际上同行比的话，我们的装备基本上在传统的浅水区，所以公司下一步会在深水区的装备上会有比较大的动作，主要是深水区进行一些投入，包括工作船、物探的钻井的装备。我们现在发债的话没有做并购的计划在里面。谢谢。 You are correct in pointing out that we are in a very healthy cash position. In our next phase, if there is to be a debt issuance, it will be to rationalize and optimize our portfolio of equipment, especially in deep sea operations, drills, vessels, etc. There is no plans at this point for any acquisitions. Thank you。有请下个提问。前面这位先生。 OK，管理层好。我是来自UBS的分析员李博纳，我有三个问题想请教。第一个是关于这个Haiyang Shiyou 981，我们公司打算会在未来从母公司收购吗？还是还会继续用这种leasing的形式？大概有没有一个时间表？如果从母公司收购的话，我们会考虑在A股增发吗？ Let us explain one by one. I'm Li from UBS. Concerning 981, will you be acquiring from the parent or will you be leasing? What would be the timing for if there is to be an acquisition? Would that entail an issuance in the Asia markets? 981是母公司的投资，那么我们现在没有要收购981的这个想法。 981 is the parent's investment. There are no plans from our company to acquire it at this point. 我再补充一句，目前我们和我们大股东签的这个合同商务模式，对COSL来讲是一个很不错的模式，所以现在收购这个Haiyang Shiyou 981是没什么意义的。 If I may supplement. In fact, the leasing arrangement is very beneficial to our company. At this point it is meaningless to acquire 981. 好，谢谢。第二个问题是我们看到报道说COSL可能在下半年会收购一些、买一些二手的semi-submersible，这种公司有相关的披露吗？ From reports, we note that it is reported that our company will acquire some secondhand semisubs for the latter part of this year. Do you have anything to say? 我们确实一直在积极地做这方面的工作，因为目前在中国近海深水区的需求量比较大，如果是临时去建造的话，这个时间上是来不及的。现在的话有现成的合同，所以我们急着在市场上找一些现成的二手装备，价格也好的装备来买进来，增加公司的产能。 Yes, indeed. We are looking at opportunities of acquiring secondhand semis and further equipment in the market, especially for near shore operations. This is for planning for the future. It will be too late if the demand is there and we are not prepared. We are preparing for the future. We will be looking at the cost and quality as well. 好，谢谢。最后一个问题是关于Marine Support和Geophysical这两个板块。我注意到今年上半年跟去年同期相比，revenue上涨了很多，但是EBIT却下降了24%和19%。我想问一下这个原因是什么？是成本的上升吗？还是我们的竞争更加激烈？是什么原因造成的？谢谢。 I would like to ask a question about Marine Support and Geophysical. The revenue I note have gone up, the EBIT came down 24% and 19% respectively. Why would that be? 关于先回答关于我们Marine Support and Transportation的板块。刚才我在我的报告里也提到，由于我们有一些船舶要退役，按照国家的规定34年要退役。另外有个别的船，还做了一些改造，做别的用途，所以我们自有的船只的数量在减少。同时为了占领和维持我们的市场份额，我们租赁了一些外部的船只。那么自有船只和租赁外部的船只的margin是不一样的，所以这是一个主要的原因。 The main reason for MS&T is because of the difference between our self-owned and leased vessels. We are retiring some vessels according to the national requirement of number of years of usage. Secondly, we are restructuring some other vessels, so we have to lease some vessels in order to make up for the shortfall. The margins for self-owned and leasing for vessels very different. That accounts for the MS&T EBIT drop. 刚才提到还有一个。物探。物探的话，是吧？这个有同样的情况。当然除了这个情况，物探还有一些特殊的问题，比如说今年的燃料比去年有相当幅度的上升。另外我们在有些作业区块里，由于海况出现了一些情况，出现了怪流，使得我们的作业效率比去年下降。 As for the geophysical part, the same reason for MS&T applies. Further to that, there is the fuel cost. It has risen significantly compared with last year. Also there were some special incidents out of the operation of the oil fields, lowering the efficiency of operation. 还有一个因素是我们所有板块都面临的，就是我们人工成本今年比去年有一定的上升。 Further, staff expenses, which is an issue open and faced by all, has also risen in the past year. Thank you. Maybe we take the last two or maybe we take the last three questions from the back. The gentleman first, the gentleman in the middle first. 各位领导好，我是中银国际的刘志成，有两个问题。首先想问一下981这个船能不能多披露一点，比如说refit率，我们下半年打得井有多深，还有下半年的情况，比如说利润率有多高。 BOCI, concerning 981, can you disclose the first half day rate and the margin? 知道这个981的利润率吗？你说吧。现在披露981的利润率好像早一点。 It's premature to disclose about 981. 实际上的话，有一个东西可以参考的，我们无论是981也好，你可以参考我们别的钻井船给中海油的价格和国际市场的价格的差距大概是相等的。 Well, it's premature to disclose 981 situations, if you look at other drillers of our company and compare the rates with that of the market, you'll be able to get to feel. 因为我们给我们的大客户提供的服务价格有一个基本的原则，所以这个原则是没有变的，无论是981还是别的船。 For 981, basically it follows the principles we have for our major clients. 另外一个问题就想问一下，你们好像在油气那边，现在说能做每井期的压裂。那我想问一下，你们压裂能做到多少段？还有这个压裂的设备是自己的，还是又是从外面租回来？是吧？