China Oilfield Services (2883) AI Stock Analysis

• Market Cap: $60.85B
• Dividend Yield: 3.56%
• Average Volume (3M): 8.93M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.58
• Revenue Growth: 2.58%
• EPS Growth: 7.10%
• Country: HK
• Employees: 15,509
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.29
• Shares Outstanding: 1,811,124,000
• 10 Day Avg. Volume: 8,780,496
• 30 Day Avg. Volume: 8,934,203
• PEG Ratio: 2.11
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 6.33
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 5.26
• Enterprise Value/Ebitda: 7.54
• 1Y Price Target: $9.65
• Price Target Upside: 37.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: HK$8.50 ▲(20.74% Upside)

China Oilfield Services Limited shows strong technical indicators and valuation metrics, suggesting potential for growth. Financial performance is solid, though cash flow challenges need addressing. The earnings call highlights strategic growth in overseas markets, despite some operational challenges. Overall, the stock is well-positioned in its industry with a positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for the company's services, reflecting its strong market position and ability to capture market opportunities in the oil and gas sector.

Profit Margins

Strong profit margins highlight the company's operational efficiency and pricing power, ensuring sustainable profitability even in fluctuating market conditions.

Balance Sheet Health

A moderate debt-to-equity ratio suggests financial stability and prudent leverage management, providing flexibility for future investments and growth.

Negative Factors

Free Cash Flow Challenges

Negative free cash flow growth could limit the company's ability to invest in new projects or return capital to shareholders, potentially impacting long-term growth prospects.

Asset Efficiency

Suboptimal asset efficiency may indicate underutilization of resources, which could affect the company's ability to maximize returns and compete effectively in the industry.

Cash Generation

Challenges in cash generation may hinder the company's ability to fund operations and strategic initiatives, affecting its long-term financial health and growth potential.

China Oilfield Services Business Overview & Revenue Model

Company Description

China Oilfield Services Limited (COSL) is a leading provider of integrated offshore and onshore oilfield services in China. The company operates across multiple sectors within the oil and gas industry, including drilling, well services, geophysical services, and marine support. COSL offers a wide range of core products and services, such as drilling rigs, workover services, seismic data acquisition, and offshore engineering, catering to the needs of major oil and gas exploration and production companies.

How the Company Makes Money

China Oilfield Services generates revenue primarily through its diverse range of services offered to oil and gas companies. The company's main revenue streams include drilling services, which involve the operation of drilling rigs to extract oil and gas; well services, which include workover and maintenance services for existing wells; and geophysical services, which involve seismic surveys to assess hydrocarbon reserves. Additionally, COSL earns income from marine support services, which provide logistical and operational support to offshore drilling activities. The company benefits from significant contracts and partnerships with major oil and gas firms, both domestically and internationally, which contribute to its earnings. Market demand for oil and gas exploration and production, along with fluctuations in oil prices, also play a critical role in influencing the company's financial performance.

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. While cash flow management is effective, the decline in free cash flow growth suggests potential cash generation challenges.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.09B	48.30B	44.11B	35.66B	29.20B	28.96B
Gross Profit	7.88B	7.58B	7.00B	4.38B	4.79B	6.67B
EBITDA	5.50B	10.56B	9.75B	7.92B	5.91B	8.45B
Net Income	3.51B	3.14B	3.01B	2.36B	313.18M	2.70B
Balance Sheet
Total Assets	83.97B	82.95B	83.25B	77.18B	73.31B	75.94B
Cash, Cash Equivalents and Short-Term Investments	7.22B	11.47B	12.72B	9.23B	10.82B	12.13B
Total Debt	11.33B	10.56B	21.62B	22.22B	23.44B	25.81B
Total Liabilities	38.55B	38.52B	40.99B	37.29B	35.10B	37.25B
Stockholders Equity	44.70B	43.80B	41.64B	39.33B	38.03B	38.51B
Cash Flow
Free Cash Flow	-641.33M	4.99B	3.62B	2.76B	3.67B	3.36B
Operating Cash Flow	-494.74M	11.02B	13.10B	6.90B	7.42B	7.55B
Investing Cash Flow	-4.86B	-5.08B	-7.46B	-3.73B	-4.73B	-3.34B
Financing Cash Flow	-4.86B	-6.46B	-3.28B	-4.87B	-4.20B	-727.05M

China Oilfield Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2883, the sentiment is Negative. The current price of 7.04 is below the 20-day moving average (MA) of 7.45, below the 50-day MA of 7.33, and above the 200-day MA of 6.70, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 34.78 is Neutral, neither overbought nor oversold. The STOCH value of 12.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2883.

China Oilfield Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2883	77 Outperform	$60.85B	9.66	8.58%	3.56%	2.58%	7.10%
3337	67 Neutral	$3.08B	9.15	8.78%	3.29%	10.16%	49.48%
3303	66 Neutral	$1.26B	18.01	2.87%	2.68%	-59.96%	-83.53%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
1623	48 Neutral	€339.29M	-0.92	-11.09%	―	-2.11%	-779.00%
1921	48 Neutral	HK$9.31B	―	-1.68%	―	4.66%	-432.65%
0568	40 Neutral	$5.29B	―	-20.65%	―	17.21%	59.09%

China Oilfield Services Corporate Events

China Oilfield Services Approves Key Governance Changes at Extraordinary Meeting

China Oilfield Services Limited held its First Extraordinary General Meeting on December 2, 2025, where all proposed resolutions were passed. Key decisions included amendments to the Articles of Association and the cancellation of the Supervisory Committee, reflecting the company’s strategic adjustments to enhance governance and operational efficiency.

China Oilfield Services Announces 2025 Extraordinary General Meeting

China Oilfield Services Limited has announced its 2025 first extraordinary general meeting to be held on December 2, 2025. Key resolutions include approving continuing connected transactions, amendments to procedural rules, and the cancellation of the Supervisory Committee. These changes aim to streamline governance and improve operational efficiency, potentially impacting the company’s strategic direction and stakeholder engagement.

China Oilfield Services Reports Strong Q3 2025 Financial Results

China Oilfield Services Limited announced its unaudited financial results for the third quarter of 2025, reporting a significant increase in profitability. The company’s net profit attributable to shareholders rose by 46.1% compared to the same period last year, reflecting strong operational performance and improved market conditions. Despite a decrease in net cash flows from operating activities, the company’s revenue and profit margins have shown positive growth, indicating a robust financial position and potential for future expansion.

China Oilfield Services Renews Framework Agreement with CNOOC

China Oilfield Services has entered into a new Master Services Framework Agreement with CNOOC, effective from January 1, 2026, continuing their collaboration for three more years. This agreement involves the provision of oilfield services by China Oilfield Services to CNOOC, while CNOOC will provide machinery leasing, kinetic energy, materials, and other ancillary services. The agreement is subject to approval by independent shareholders and is considered a continuing connected transaction under Hong Kong Listing Rules, reflecting the strategic partnership between the two entities.

China Oilfield Services to Present Q3 2025 Results

China Oilfield Services Limited has announced its intention to publish its third-quarter results for 2025 on the Hong Kong Stock Exchange website on October 29, 2025. To provide investors with a deeper understanding of its financial performance and business conditions, the company will hold a results presentation via telephone conference on October 30, 2025, where management will address investor concerns and answer questions.

China Oilfield Services Schedules Board Meeting to Review Q3 Results

China Oilfield Services Limited has announced a board meeting scheduled for October 29, 2025, to consider and potentially approve the company’s third quarterly results for the period ending September 30, 2025. This meeting is crucial as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

CNOOC Increases Stake in China Oilfield Services Amid Market Fluctuations

China Oilfield Services Limited announced that its controlling shareholder, China National Offshore Oil Corporation (CNOOC), increased its shareholding by acquiring 16,008,000 H shares, representing approximately 0.34% of the total issued shares. This move is part of a broader Shareholding Increase Plan, which aims to strengthen CNOOC’s position in the company. However, due to market fluctuations, the increase has not yet reached 50% of the planned amount, and CNOOC intends to continue acquiring shares as conditions allow. The plan complies with relevant Chinese securities laws, and the company will continue to monitor and disclose its progress.