COSL (China Oilfield Services Limited) is the largest integratedoilfield services provider in China. Its four kinds of core business aregeophysical services, drilling services, oilfield technology servicesand marine services. Its parent company, namely China NationalOffshore Oil Corporation (CNOOC), is the largest offshore oil andgas producer in China.
In 2012, the Company earned RMB 22.105billion in revenues,which was 20% higher than that in 2011(RMB 18.426billion). Netprofit attributed to shareholders reached RMB 4.57billion, whichhad a 13.1% year-on-year growth. Earnings per share (EPS)amounted to RMB 1.01. Huge rise of upstream demand andproduction capacity growth brought by new equipment contributedto a sharp increase in achievements in 2012.
In the year of 2012, all the four kinds of business recorded asubstantial growth. Drilling services earned RMB 11.252billion,which is 18.2% higher than that in 2011, and remained the keygrowth point for the Company. The significant growth in thisbusiness benefited from the increase of work amount and daily rate.The jack-up drilling rig and semi-submersible drilling rigrespectively operated 552and 534days more than that of last year;
the daily rate rose by 1% and 14% respectively. In addition, theturnover of oilfield technology services increased significantly by23%, reaching RMB 4.858billion. The turnover of marine servicesincreased by 16.2% and amounted to RMB 2.945billion. Theservices of geophysical prospecting and engineering investigationincreased by 25.7% over 2011and amounted to RMB 2.427billion.
CNOOC's successful acquisition of Nexen has signified itsdetermination to increasingly expand offshore oilfield andvigorously develop upstream business. At the end of August, 2012,COSL issued USD 1billion bonds in foreign currencies in order topurchase new drilling equipment. CNOOC also intended toaccelerate deep sea drilling business. These actions hinted that theCompany's quantity of work will grow continuously in the future.
In terms of both current supply & demand and currency conditions,it is highly probable that international oil price will keep rising. Inthis case, the upstream production enterprises are supposed to investheavily, while drilling work amount and daily rate will increaseaccordingly. Moreover, no huge risk of fluctuation exists in theindustry due to a long development period, long contract term andguaranteed rate. Short and medium-term drop of international oilprice exerts hardly any adverse impact on the Company's businesses.