China Oilfield Services (2883) H2 2024 earnings summary

Executive summary

• 2024 saw stable and positive development, with improvements in revenue, profit, and operational efficiency, and expanding brand influence domestically and internationally.

• Overseas revenue surpassed RMB 10 billion, accounting for 22.6% of total revenue and reflecting significant expansion and new regional breakthroughs.

• Technological innovation, integration strategies, and R&D investment drove efficiency and technology coverage to new highs.

• All four business segments—drilling, well, marine support, and geophysical services—achieved revenue growth, with marine support and geophysical services leading at 20.9% and 14.1% increases, respectively.

• The company maintained a focus on cost leadership, lean management, and asset-liability optimization.

Financial highlights

• 2024 revenue reached RMB 48.3 billion, up 10% year-over-year; net profit was RMB 3.4 billion, up 9% year-over-year; EBITDA was RMB 11.76 billion.

• EPS rose 4% year-over-year to RMB 0.66; basic earnings per share was RMB65.74 cents.

• Dividend payout increased to RMB1.1 billion, with a proposed final dividend of RMB0.2306 per share, pending AGM approval.

• Operating profit increased 4.0% to RMB5,047.6 million; ROE remained stable at 8.0%.

• All major business segments saw stable revenue growth, with the technology segment contributing 57% of revenue and nearly 90% of profit.

Outlook and guidance

• Domestic workload is projected to remain high in 2025, supported by major client CapEx plans; CNOOC's CAPEX estimated at RMB 125–135 billion.

• Overseas new contract value is expected to rise significantly in 2025, with global oilfield services market forecast to grow 2.2%.

• 2025 capital expenditure is budgeted at approximately RMB7.2 billion, focused on equipment upgrades, R&D, and infrastructure.

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

• The company aims to maintain stable internal liquidity and sufficient external financing channels.