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China Oilfield Services Limited Class H (HK:2883)
:2883

China Oilfield Services (2883) AI Stock Analysis

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HK

China Oilfield Services

(OTC:2883)

Rating:73Outperform
Price Target:
HK$7.00
▲(10.94%Upside)
China Oilfield Services exhibits strong financial health with consistent revenue growth and robust profit margins. The valuation is appealing due to a low P/E ratio and a solid dividend yield. Technical indicators show moderate bullish momentum, though some resistance levels remain. The company's ability to improve cash flow generation will be crucial for future performance.

China Oilfield Services (2883) vs. iShares MSCI Hong Kong ETF (EWH)

China Oilfield Services Business Overview & Revenue Model

Company DescriptionChina Oilfield Services Limited (COSL) is a leading integrated oilfield services provider in China, operating primarily in the offshore oil and gas exploration and production sectors. The company offers a comprehensive range of services, including geophysical and surveying services, drilling services, well services, and marine support and transportation. With operations extending to both domestic and international markets, COSL plays a critical role in supporting the oil and gas industry's upstream activities.
How the Company Makes MoneyChina Oilfield Services Limited generates revenue through its diverse portfolio of services catering to the oil and gas sector. Key revenue streams include drilling services, where the company provides offshore drilling rigs and platforms to explore and extract hydrocarbons. Additionally, COSL offers well services, including logging, cementing, and completion, which are crucial for the efficient and safe operation of oil wells. Geophysical and surveying services contribute to its earnings by providing seismic data and analysis crucial for exploration activities. Marine support and transportation services, utilizing a fleet of vessels, also form an integral part of its revenue model, facilitating the movement of personnel, equipment, and supplies necessary for offshore operations. The company benefits from strategic partnerships and collaborations with major oil and gas companies, both within China and internationally, which help secure contracts and expand its market presence.

China Oilfield Services Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q3-2024)
|
% Change Since: 9.83%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While COSL maintained stable profits and showcased strong performance in the well service segment and R&D investment, it faced challenges from exchange rate fluctuations and decreased rig utilization due to weather conditions. The management's positive outlook for overseas market opportunities adds a sense of optimism.
Q3-2024 Updates
Positive Updates
Stable Profit Despite Weather Impact
COSL reported stable profits despite the influence of adverse weather conditions affecting operations.
Well Service Business Performance
Well service business accounted for 56% of revenue and 76-77% of profit, showing strong performance as a leading business segment.
R&D Investment
COSL increased its R&D investment from CNY 1.7 billion to almost CNY 2 billion, representing about 4% of revenue.
Positive Outlook for Overseas Markets
Management expressed confidence in the overseas market, particularly in Norway and Saudi Arabia, with higher anticipated revenues and margins in the upcoming year.
Negative Updates
Exchange Rate Fluctuation Losses
The company experienced a loss of CNY 200 million due to exchange rate fluctuations between the Chinese yuan and the U.S. dollar.
Decreased Utilization of Semi-Submersible Rigs
Utilization of semi-submersible rigs was lowered due to typhoons in China and preparation work for a project in Brazil, affecting overall utilization rates.
Impact of Weather on Rigs
The adverse weather conditions led to approximately 100 lost rig days, affecting 10 rigs to varying extents.
Company Guidance
During the COSL Q3 2024 earnings call, the company provided guidance on several key metrics and strategic initiatives. The management discussed the impact of exchange rate fluctuations, revealing a loss of approximately CNY 200 million due to the appreciation of the Chinese yuan from 7.1 to 7.0 against the U.S. dollar. The well service segment contributed significantly to the company's performance, accounting for around 56% of revenue and nearly 80% of profit. Despite a lowered utilization rate of semi-submersible rigs in Q3, influenced by typhoons in China, the company expressed optimism for improved utilization in Q4, especially with projects in the North Sea and Saudi Arabia. COSL plans to continue investing in R&D, with expenditures expected to increase beyond the CNY 2 billion spent last year. The company remains confident about future overseas market prospects, anticipating stable growth in the oil and gas industry and a positive impact from new projects in Brazil and Norway. Additionally, the management discussed the potential for stock repurchase activities, influenced by national policies encouraging central enterprises to buy back shares.

China Oilfield Services Financial Statement Overview

Summary
China Oilfield Services demonstrates solid financial health with consistent revenue growth and strong profit margins. The balance sheet is stable with manageable leverage and good equity levels. However, the decline in free cash flow growth suggests potential cash generation challenges.
Income Statement
78
Positive
China Oilfield Services has shown consistent revenue growth with a solid TTM revenue increase of 1.34%. Gross profit margin stands at a robust 15.97%, while net profit margin is strong at 6.92%. The company demonstrates healthy operational efficiency with an EBIT margin of 10.37% and an EBITDA margin of 11.34%. These figures signal strong profitability and operational stability.
Balance Sheet
65
Positive
The debt-to-equity ratio is moderate at 0.23, indicating prudent leverage. Return on equity is decent at 7.58%, reflecting effective utilization of shareholder funds. The equity ratio is solid at 53.62%, suggesting financial stability, though there is room for improvement in asset efficiency.
Cash Flow
72
Positive
The free cash flow growth rate is negative, indicating challenges in cash generation. However, the operating cash flow to net income ratio is healthy at 0.75, suggesting cash flow reliability. The free cash flow to net income ratio is also strong at 0.14, underscoring effective cash management despite the decline in free cash flow.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
48.95B48.30B44.11B35.66B29.20B28.96B
Gross Profit
7.82B7.58B7.00B4.38B4.79B6.67B
EBIT
5.08B4.84B4.26B3.00B3.88B5.71B
EBITDA
5.55B10.56B9.75B7.92B5.91B8.45B
Net Income Common Stockholders
3.39B3.14B3.01B2.36B313.18M2.70B
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.30B11.47B12.72B9.23B10.82B12.13B
Total Assets
75.97B82.95B83.25B77.18B73.31B75.94B
Total Debt
30.31B10.09B21.62B22.22B23.44B25.81B
Net Debt
26.61B4.12B15.08B18.10B18.33B19.22B
Total Liabilities
41.31B38.52B40.99B37.29B35.10B37.25B
Stockholders Equity
34.51B43.80B41.64B39.33B38.03B38.51B
Cash FlowFree Cash Flow
460.03M4.99B3.62B2.76B3.67B3.36B
Operating Cash Flow
2.55B11.02B13.10B6.90B7.42B7.55B
Investing Cash Flow
-393.98M-5.08B-7.46B-3.73B-4.73B-3.34B
Financing Cash Flow
-5.79B-6.46B-3.28B-4.87B-4.20B-727.05M

China Oilfield Services Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.31
Price Trends
50DMA
6.17
Positive
100DMA
6.45
Negative
200DMA
6.73
Negative
Market Momentum
MACD
0.07
Negative
RSI
57.25
Neutral
STOCH
90.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2883, the sentiment is Neutral. The current price of 6.31 is above the 20-day moving average (MA) of 6.28, above the 50-day MA of 6.17, and below the 200-day MA of 6.73, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.25 is Neutral, neither overbought nor oversold. The STOCH value of 90.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2883.

China Oilfield Services Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$55.57B8.987.81%3.62%7.72%2.35%
69
Neutral
HK$1.36B6.538.83%4.69%-20.69%-30.40%
68
Neutral
$3.76B13.827.26%2.52%5.43%20.64%
59
Neutral
€191.70M6.24
7.69%-81.72%
57
Neutral
$7.22B3.15-4.49%5.63%0.82%-49.15%
53
Neutral
$3.02B-45.09%30.81%2.97%
45
Neutral
HK$10.27B1,816.33-5.55%0.59%-16.30%-156.80%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2883
China Oilfield Services
6.43
-0.70
-9.81%
HK:1921
Dalipal Holdings Limited
6.84
1.96
40.16%
HK:1623
Hilong Holding Ltd.
0.11
0.00
0.00%
HK:0568
Shandong Molong Petroleum Machinery
2.41
1.41
141.00%
HK:3303
Jutal Offshore Oil Services
0.64
-0.25
-28.01%
HK:3337
Anton Oilfield Services Group
1.41
0.98
225.64%

China Oilfield Services Corporate Events

China Oilfield Services Approves Key Resolutions at Annual Meetings
May 22, 2025

China Oilfield Services Limited successfully held its Annual General Meeting and H Shareholders’ Class Meeting on May 22, 2025, where all proposed resolutions were passed. The meetings, attended by a significant portion of shareholders, approved key resolutions such as the audited financial statements, profit distribution plan, and reports from the Board of Directors and Supervisory Committee, indicating strong shareholder support and compliance with legal and regulatory requirements.

The most recent analyst rating on (HK:2883) stock is a Buy with a HK$11.00 price target. To see the full list of analyst forecasts on China Oilfield Services stock, see the HK:2883 Stock Forecast page.

China Oilfield Services Updates Final Dividend Details for 2024
May 22, 2025

China Oilfield Services Limited announced an update on its final cash dividend for the year ended December 31, 2024. The dividend is set at RMB 0.2306 per share, with a payment date of June 30, 2025. The update includes details on the exchange rate, withholding tax, and payment logistics, reflecting the company’s commitment to maintaining transparency and shareholder value. This announcement may impact the company’s financial positioning and shareholder relations, particularly concerning tax implications for non-resident shareholders.

The most recent analyst rating on (HK:2883) stock is a Buy with a HK$11.00 price target. To see the full list of analyst forecasts on China Oilfield Services stock, see the HK:2883 Stock Forecast page.

China Oilfield Services Announces 2025 AGM with Key Resolutions
Apr 29, 2025

China Oilfield Services Limited has announced its Annual General Meeting (AGM) scheduled for May 22, 2025, where key resolutions will be considered. These include approving financial statements, profit distribution, re-appointment of directors, and extending US Dollar loans. The meeting will also address the issuance of overseas-listed shares, which could impact the company’s capital structure and market positioning.

China Oilfield Services Announces Share Buyback Mandate
Apr 29, 2025

China Oilfield Services Limited has announced a class meeting for H shareholders to consider a special resolution granting the company’s Board a general mandate to buy back up to 10% of its domestic and overseas-listed foreign invested shares. This move is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value, reflecting a strategic approach to adapt to market conditions and regulatory requirements.

China Oilfield Services Updates Final Dividend for 2024
Apr 29, 2025

China Oilfield Services Limited announced an update to its final cash dividend for the year ended December 31, 2024, declaring a dividend of RMB 0.2306 per share. The announcement includes key dates for shareholders, such as the ex-dividend date on June 9, 2025, and the payment date on June 30, 2025. This update reflects the company’s commitment to returning value to its shareholders, potentially strengthening its market position and investor confidence.

China Oilfield Services Reports Strong Q1 2025 Results with Revenue and Profit Growth
Apr 23, 2025

China Oilfield Services Limited announced its first quarterly results for 2025, reporting a 6.4% increase in revenue to 10,797.5 million Yuan compared to the same period last year. The company also saw a significant rise in net profit attributable to shareholders by 39.6%, reaching 887.2 million Yuan, despite a negative net cash flow from operating activities.

China Oilfield Services to Announce Q1 2025 Results and Host Investor Call
Apr 15, 2025

China Oilfield Services Limited announced it will release its 2025 first quarterly results on April 23, 2025, via the Hong Kong Stock Exchange website. The company will hold a results presentation through a telephone conference on the same day to discuss its operating position and address investor concerns, highlighting its commitment to transparency and stakeholder engagement.

CNOOC to Boost Stake in China Oilfield Services with Major Shareholding Increase Plan
Apr 8, 2025

China Oilfield Services Limited announced that its controlling shareholder, China National Offshore Oil Corporation (CNOOC), plans to increase its shareholdings in the company by purchasing additional A shares and H shares over the next 12 months. This Shareholding Increase Plan, valued between RMB300 million and RMB500 million, will be executed through centralized price bidding and trading systems in Shanghai and Hong Kong. The move reflects CNOOC’s confidence in the company’s future prospects and aims to strengthen its market position. However, the plan’s implementation is subject to market conditions and regulatory requirements, with potential risks of partial or non-implementation.

China Oilfield Services Schedules Board Meeting for Quarterly Results
Apr 8, 2025

China Oilfield Services Limited has announced a board meeting scheduled for April 23, 2025, to consider and potentially approve the company’s first quarterly results for the period ending March 31, 2025. This announcement indicates the company’s ongoing commitment to transparency and timely financial reporting, which is crucial for maintaining investor confidence and strategic positioning in the competitive oilfield services industry.

China Oilfield Services Announces Strong 2024 Financial Results
Mar 25, 2025

China Oilfield Services reported its annual financial results for the year ended December 31, 2024, showing a revenue of RMB48,218.1 million and a profit for the year of RMB3,399.1 million. The company’s strong financial performance, with an increase in both revenue and profit compared to the previous year, highlights its solid position in the oilfield services industry. This growth is indicative of the company’s effective operational strategies and market positioning, which could have positive implications for stakeholders.

China Oilfield Services Proposes Re-Appointment of Directors
Mar 25, 2025

China Oilfield Services Limited (COSL) has announced the proposed re-appointment of two independent non-executive directors, Mr. Kwok Lam Kwong, Larry and Mr. Yao Xin, whose terms are set to expire in 2025. The re-appointments are subject to shareholder approval at the 2024 annual general meeting. If approved, both directors will serve another three-year term, continuing their roles in various committees, which is expected to provide stability and continuity in the company’s governance structure.

China Oilfield Services Announces Final Dividend for 2024
Mar 25, 2025

China Oilfield Services Limited announced a final cash dividend of RMB 0.2306 per share for the financial year ending December 31, 2024. The payment date is set for June 30, 2025, with further details on currency exchange rates and shareholder approval to be announced. This dividend announcement reflects the company’s financial performance and commitment to returning value to its shareholders, potentially impacting investor confidence and market positioning.

China Oilfield Services to Announce 2024 Annual Results and Host Investor Presentation
Mar 13, 2025

China Oilfield Services Limited announced plans to release its 2024 annual results on March 25, 2025, with a results presentation scheduled for March 26, 2025. The presentation aims to provide investors with a comprehensive understanding of the company’s annual performance and operational status, featuring participation from key executives. This initiative reflects the company’s commitment to transparency and investor engagement, potentially impacting stakeholder confidence and market positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.