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COSL Announces 2016 Interim Results

Time:2016-08-31 Size:[ Large Medium Small ]

On August 29, China Oilfield Services Limited ("COSL") announced its unaudited interim financial statements for 2016.

In the first half of 2016, the competition in the oilfield services industry was further intensified by the continuously low international crude oil prices and a decrease in total investments by global oil and gas companies. Affected by the tough industry situation, COSL achieved revenue of RMB 6,963 million, while after deducting the loss of RMB 7,144 million in asset impairment provisions, the loss of net profit was RMB 1,256 million in the first half of 2016.

Faced with the gloomy industry circumstances, COSL continued to reinforce safety production, promote self-developed technology vigorously, optimize capital management, lower costs and boost efficiency, including using flexible financing to ensure sufficient liquidity. Meanwhile, COSL intensified its efforts in market expansion, seeking to reinforce its share in the offshore China market while tapping the Far East market and expanding in the Middle East market. All segments, especially the marine support services and geophysical and surveying services segments, achieved different degrees of accomplishments. At the moment, its international expansion efforts landed operation footholds in five major overseas regions, including the Far East, the Middle East and the Americas.

In the drilling services, the company operates and manages 45 drilling rigs, 2 support platforms, 5 module rigs. Nanhai 8 and Nanhai 9 secured contracts in the Far East market and performed operations with high efficiency. COSLSuperior and COSLCraft successfully landed footholds in the oilfield service market in the Middle East. Hai Yang Shi You 937 secured an operation contract from a customer operating in Indonesia. Hai Yang Shi You 943 was named "Dragon Team" by Shell China Exploration and Production Company for the safe, high efficiency and high quality services delivered.

In the well services, the company promoted application of its self-developed technology and development results which took part of market shares originally owned by international peers. Its self-developed LWD 800 series and RSS 950 series struck success in operations in East China Sea. Its Enhanced Resistivity Micro-Imager completed the offshore operation. At the same time, the company's international market expansion efforts yielded results and secured an offshore LWD contract in the Middle East, and a drilling fluid service contract in Indonesia and a workover and optimization integrated services contract in Iraq.

In the marine support services and geophysical and surveying services, the company spared on efforts in international market expansion. Hai Yang Shi You 685 successfully entered the Far East market. Hai Yang Shi You 720 smoothly completed its first 3D seismic data collection project in North Pole waters. Seismic vessel Hai Yang Shi You 751 and support vessel Hai Yang Shi You 770 secured operation leasing contracts in the Middle East. Hai Yang Shi You 718 completed an operation for Shell Exploration and Development Company in New Zealand waters ahead of schedule.

Qi Meisheng, CEO and President of COSL, said, "Faced with the critical challenges from the industry downturn, the company will continue to insist on ‘Specialize to become strong’, enhancing service capabilities of equipment, accelerating the serialization and industrialization of technology and advancing international development, especially seeking larger international market shares for its well services segment."

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