China Oilfield Services Limited Class H (HK:2883)
:2883
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China Oilfield Services
(2883)
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Rating:67Neutral
Price Target:
HK$10.00
▲(34.77% Upside)
Action:ReiteratedDate:04/24/26
The score is driven primarily by improved profitability and a healthier balance-sheet profile, supported by a reasonable valuation (low-teens P/E and a moderate dividend). This is tempered by weaker cash-flow conversion/TTM FCF softness and mixed technical momentum (negative MACD, below 50‑DMA). The latest earnings call adds moderate support from strong Q1 operations and contract wins, but cautious guidance and FX/oil-price uncertainty keep risk elevated.
Positive Factors
Improved profitability
Sustained margin recovery (net margin rising from ~1% in 2021 to ~7–8% recently) indicates stronger pricing, cost control and operational execution. This improved earnings quality supports long‑term cash generation, resilience through cycles and a structurally healthier return on equity profile.
Negative Factors
Weak FCF conversion
Low FCF conversion versus net income and recent negative TTM FCF growth signal that earnings are not fully translating into spendable cash. Cyclical working‑capital swings and higher capex could strain liquidity, limiting capital allocation flexibility and making payouts or debt reduction harder.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Sustained margin recovery (net margin rising from ~1% in 2021 to ~7–8% recently) indicates stronger pricing, cost control and operational execution. This improved earnings quality supports long‑term cash generation, resilience through cycles and a structurally healthier return on equity profile.
Read all positive factors
China Oilfield Services (2883) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$67.05B
Dividend Yield3.59%
Average Volume (3M)8.93M
Price to Earnings (P/E)11.1
Beta (1Y)0.51
Revenue Growth4.22%
EPS Growth22.46%
CountryHK
Employees15,509
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.21
Shares Outstanding1,811,124,000
10 Day Avg. Volume8,780,496
30 Day Avg. Volume8,934,203
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)0.64
Price to Sales (P/S)0.60
P/FCF Ratio5.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$11.80Price Target Upside59.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.93
Revenue Forecast (FY)HK$52.25B
China Oilfield Services Business Overview & Revenue Model
Company Description
China Oilfield Services Limited, together with its subsidiaries, provides integrated offshore oilfield services in Mainland China and internationally. The company operates through four segments: Drilling Services, Well Services, Marine Support Ser...
How the Company Makes Money
COSL makes money by providing fee-based oilfield services and charging customers—typically oil and gas operators—for equipment, crews, and project execution. Key revenue streams generally include: (1) Drilling services: revenue from operating offs...
China Oilfield Services Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational momentum: strong Q1 operating profit growth (+22% YoY), improved well-service margins (+2pp to 18.2%) and revenue growth in key segments, plus contract wins and geographic expansion (Brazil, Middle East, Kazakhstan). However, material challenges were highlighted including a sizeable Q1 exchange loss (CNY 303m), increased scheduled maintenance (jackups), Middle East disruptions, and notable oil-price and FX-driven forecasting uncertainty. On balance the operational strength and contract wins outweigh the financial and regional headwinds, though risks remain.Positive Updates
Strong Operating Profit Growth
Operating profit for Q1 2026 reached CNY 1.53 billion, an increase of 22% year-on-year; both domestic and overseas operating profits increased ~20% YoY, indicating broad-based improvement in core operations.
Negative Updates
Significant Exchange Losses
Q1 recorded exchange losses of approximately CNY 303 million, which is CNY 208 million higher than the same period last year; management noted continued FX exposure risk and potential for further losses if RMB appreciates.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Operating Profit Growth
Operating profit for Q1 2026 reached CNY 1.53 billion, an increase of 22% year-on-year; both domestic and overseas operating profits increased ~20% YoY, indicating broad-based improvement in core operations.
Read all positive updates
Company Guidance
Management gave cautious, market‑responsive guidance rather than firm full‑year day‑rate or volume targets, citing oil‑price volatility (spot topped >$110–$120 then slipped to ~$80+, with WTI briefly above Brent) and saying it will “maintain dynamic conversations” with clients (notably CNOOC) to align CapEx and resource allocation; they will provide resources as client plans change. They pointed to Q1 operating strength as context: operating profit CNY 1.53 billion (+22% YoY); drilling and well services improved (well‑service revenue CNY 6.07 billion, +5% YoY; well‑service net profit CNY 1.11 billion, +18% YoY; margin 18.2%, +2 percentage points YoY; domestic well‑service margin >20%), and one domestic semi‑sub reached ~100% utilization even as jackup repair days rose (with more scheduled across the year but offset by higher domestic/Norway/Brazil day rates). Management also flagged a CNY 303 million FX exchange loss (up CNY 208 million YoY) and said it is taking measures to reduce FX exposure, reiterated growth ambitions for the 15th Five‑Year Plan after revenue rose ~CNY30bn → CNY40bn → >CNY50bn during the 14th FYP, and emphasized securing long‑term contracts (EPC, cementing, Kazakhstan framework, Iraq work) to mitigate regional disruption.China Oilfield Services Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.25B | 50.28B | 48.30B | 44.11B | 35.66B | 29.20B |
| Gross Profit | 6.67B | 8.74B | 7.58B | 7.00B | 4.38B | 4.79B |
| EBITDA | 4.00B | 11.45B | 10.56B | 9.75B | 7.92B | 5.91B |
| Net Income | 2.56B | 3.84B | 3.14B | 3.01B | 2.36B | 313.18M |
Balance Sheet | ||||||
| Total Assets | 86.44B | 84.46B | 82.95B | 83.25B | 77.18B | 73.31B |
| Cash, Cash Equivalents and Short-Term Investments | 11.73B | 13.08B | 11.47B | 12.72B | 9.23B | 10.82B |
| Total Debt | 15.52B | 13.16B | 10.56B | 21.62B | 22.22B | 23.44B |
| Total Liabilities | 38.29B | 37.31B | 38.52B | 40.99B | 37.29B | 35.10B |
| Stockholders Equity | 47.51B | 46.57B | 43.80B | 41.64B | 39.33B | 38.03B |
Cash Flow | ||||||
| Free Cash Flow | 3.83B | 5.40B | 4.99B | 3.62B | 2.76B | 3.67B |
| Operating Cash Flow | 8.82B | 11.29B | 11.02B | 13.10B | 6.90B | 7.42B |
| Investing Cash Flow | -7.31B | -5.17B | -5.08B | -7.46B | -3.73B | -4.73B |
| Financing Cash Flow | 251.43M | -4.04B | -6.46B | -3.28B | -4.87B | -4.20B |
China Oilfield Services Technical Analysis
Neutral
7.42
Price Trends
9.57
Negative
8.54
Positive
7.80
Positive
Market Momentum
-0.14
Positive
38.47
Neutral
14.88
Positive
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 7.42 is below the 20-day moving average (MA) of 9.35, below the 50-day MA of 9.57, and below the 200-day MA of 7.80, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 14.88 is Positive, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$3.27B | 5.39 | 8.78% | 3.59% | 17.33% | 65.22% | |
67 Neutral | HK$67.05B | 11.07 | 8.25% | 3.59% | 4.22% | 22.46% | |
66 Neutral | HK$1.05B | 21.20 | 2.87% | 2.83% | -61.54% | -75.74% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | HK$400.59M | 3.80 | 12.68% | ― | -7.16% | ― | |
48 Neutral | HK$390.18M | -0.87 | -11.00% | ― | 4.50% | -1232.04% | |
41 Neutral | HK$8.66B | 275.81 | 1.06% | ― | 50.13% | ― |
* Energy Sector Average
HK:2883
China Oilfield Services
9.16
3.21
54.03%
HK:3337
Anton Oilfield Services Group
1.17
0.24
26.35%
HK:3303
Jutal Offshore Oil Services
0.43
-0.14
-25.18%
HK:0568
Shandong Molong Petroleum Machinery
8.69
7.34
543.70%
HK:1623
Hilong Holding Ltd.
0.23
0.12
103.54%
HK:2178
Petro-king Oilfield Services Ltd.
0.23
0.18
360.00%
China Oilfield Services Corporate Events
China Oilfield Services Posts Q1 Revenue Growth but Faces Profit and Cash Flow Pressure
Apr 22, 2026
China Oilfield Services Limited reported first-quarter 2026 revenue of RMB 11.30 billion, up 4.6% year on year, as the offshore services provider continued to benefit from steady demand in exploration and production support. However, net profit at...
China Oilfield Services to Renew Connected Financial Services Deal With CNOOC Finance
Apr 22, 2026
China Oilfield Services plans to renew its financial services framework with related-party CNOOC Finance when the current agreement expires in May 2026, ensuring continued access to cash depository, settlement, loan and other financial services on...
China Oilfield Services Sets Investor Call on Q1 2026 Results
Apr 14, 2026
China Oilfield Services Limited will publish its first-quarter 2026 results on the Hong Kong stock exchange disclosure platform on 22 April 2026, and will follow with a dedicated investor presentation. The move underscores the company’s effo...
China Oilfield Services Sets Board Meeting to Approve First-Quarter 2026 Results
Apr 7, 2026
China Oilfield Services Limited has scheduled a board meeting for 22 April 2026 to review and consider approval of its first quarterly results for the three months ended 31 March 2026. The upcoming discussion of quarterly performance will be close...
CNOOC Extends Shareholding Increase Plan in China Oilfield Services to 2027
Apr 2, 2026
China National Offshore Oil Corporation, the controlling shareholder of China Oilfield Services Limited, has increased its stake in the company by 16,008,000 H shares since April 2025, bringing its total holding to about 2.43 billion shares, or 50...
China Oilfield Services Delivers Higher 2025 Profit and Earnings
Mar 24, 2026
China Oilfield Services reported revenue of RMB50.21 billion for 2025, supported by a broad portfolio of offshore drilling and oilfield service operations, bringing total assets to RMB84.46 billion and equity to RMB47.15 billion. The company remai...
China Oilfield Services Proposes Final RMB 0.2825 Dividend for 2025
Mar 24, 2026
China Oilfield Services Limited has proposed a final ordinary cash dividend of RMB 0.2825 per share for the financial year ended 31 December 2025, with payment scheduled for 30 June 2026, subject to shareholder approval. Key implementation details...
China Oilfield Services Sets March 2026 Briefing for 2025 Results
Mar 12, 2026
China Oilfield Services Limited has scheduled the publication of its 2025 annual results on the Hong Kong stock exchange’s website on 24 March 2026. The company will follow this with an investor presentation on 25 March 2026, led by senior m...
China Oilfield Services Issues CNY5 Billion Guaranteed Notes for Debt Refinancing
Mar 10, 2026
China Oilfield Services, acting as guarantor, has arranged for its subsidiary issuer to place CNY5 billion of 1.95% guaranteed notes due 2029 with institutional investors outside the United States and Hong Kong. The notes, priced at par and bearin...
China Oilfield Services Plans International Guaranteed Note Issue for Debt Refinancing
Mar 9, 2026
China Oilfield Services plans an international offering of guaranteed notes through its wholly owned indirect subsidiary COSL Singapore Capital, targeting professional investors outside the United States under Regulation S, with final terms such a...
China Oilfield Services Sets March 2026 Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 5, 2026
China Oilfield Services Limited has scheduled a board meeting for 24 March 2026 to review and approve its annual results for the financial year ended 31 December 2025. The board will also consider recommending a final dividend for shareholders, si...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.