China Oilfield Services Limited announces 2012 results
China Oilfield Services Limited ("COSL") announced its full-year results for the year ended 31 December 2012, said in the company's press release.
Benefiting from full capacity utilization for both domestic and overseas operations, as well as commencement of operations of new equipment, the group's revenue for the year under review reached RMB22,104.7 million, up 20.0% year on year. Profit from operations during the period reached RMB5,618.6 million, up 12.8% year on year. Profit attributable to shareholders for the year rose 13.1% year on year to RMB4,569.8 million. Basic earnings per share were RMB101 cents (2011: RMB90 cents). The Board has recommended a final dividend of RMB31 cents per share.
In the Drilling Segment, by the end of 2012, COSL operated and managed a total of 35 drilling rigs (of which 27 are jack-up drilling rigs and 8 are semi-submersible drilling rigs), 2 accommodation rigs, 4 module rigs and 8 land drilling rigs.
During the year, jack-up drilling rigs of the Group achieved 9,244 operation days, up 552 days year on year. This was mainly a result of full-capacity operation from COSLConfidence and COSLSeeker, which added 363 operating days. There were another 555 more operating days from the four 200-feet drilling rigs, while the pre-operation preparation works of drilling rigs BH8 and HYSY936 shaved 302 days. The repair and maintenance of COSLBoss cut another 95 operating days while other drilling rigs added 31 days in aggregate. Semi-submersible drilling rigs operated 534 more days year on year, with 348 days contributed by the three newly deployed rigs, of which HYSY981 added 309 days, NH8 added 23 days and COSLInnovator added 16 days. Another 212 days were added as a result of full-capacity operation from COSLPioneer. On the other hand, repair and maintenance of NH2 shaved 49 days and other drilling rigs contributed to 23 more days in aggregate. Due to an increase repair and maintenance works for the drilling rigs during the year, calendar-day utilization rate of the Group's drilling rigs in 2012 reached 93.2%, representing a decline of 0.5 percentage point from the last corresponding period. Two accommodation rigs continued to operate in the North Sea for 732 days, while both available-day utilization rate and calendar-day utilization rate reached 100.0%.
The average day rate of drilling rigs during the period under review stood at USD151,000, up 14.4% year on year from USD132,000 in the last corresponding period.
By the end of 2012, the group had 11 drilling rigs operating in the Bohai region in China, 8 in China South Sea, 1 in China East Sea, 13 in overseas countries such as Indonesia, Australia, Norway and Mexico etc. In addition, there was 1 drilling rig under repair while another 1 was in a pre-operation stage. 2 accommodation rigs were continuing their services for clients in the North Sea. On top of that, 4 module rigs were operating in Mexican waters, 3 land drilling rigs services operating in Iraq and 5 land drilling rigs ceased services due to the lingering uncertainties in Libya.
On Marine Support and Transportation Services, with increasingly fierce competition among the utility vessels industry in offshore China in 2012, the group was facing intense market pressure. The number of operating days of self-owned vessels were 1,455 days fewer when compared with that of the last corresponding period, mainly because a: first, there were 2 standby vessels written off while another 2 vessels were in the process of being upgraded into geophysical and surveying vessels, resulting in 1,407 fewer operating days. Second, despite the addition of 335 operating days from HYSY683, an AHTS vessel, as NH205 was written off and some vessels underwent repair and maintenance works, resulted in an overall decrease of 108 days from the last corresponding period. Thirdly, the other three types of vessels contributed to an increase of 60 operating days.
On Geophysical and Surveying Services, the segment achieved full-capacity operation. The 3D seismic data collection volume of HYSY720, a 12-streamer deep-water geophysical vessel, exceeded 10,000 km² for the year, writing a new record for geophysical vessels operating in offshore China. 2D data collection volume reached 17,894 km, down 9,914 km, or 35.7% year on year, mainly because BH517 was in the middle of being modified into a submarine cable vessel. The operation volume of 3D collection services increased by 6,324 km2 year on year to 29,498km2, mainly attributable to HYSY720, a 12-streamer geophysical vessel which commenced operation in 2011, brought in another 4,175 km² of operation volume; HYSY719 won overseas projects for the winter season and increased operation efficiency by 1,708 km². Benefiting from the addition of a new submarine cable team, the submarine cable data collection business increased by 578 km² whereas other vessels recorded 137 km² less volume. Data processing activities, driven by a revival in the market, also recorded stable growth year on year.
Engineering Survey Service achieved an encouraging operation volume for the year. Revenue of engineering survey service amounted to RMB606.8 million, representing a year-on-year growth of 43.2%.
For International Businesses, as the group achieved an expansion in sale in this segment, with RMB6,879.4 million in revenue, up 33.0% year on year, contributing to 31.1% of the total.
In 2012, leveraging its high-quality services, the group successfully developed markets in the North Sea, Southeast Asia and Mexico. On the heels of the successful operation of COSLPioneer with positive endorsements from the clients, another semi-submersible drilling rig, COSLInnovator, entered into an eight-year contract with Statoil in the fourth quarter. COSLPromoter, the sister rig of COSLInnovator, received an AOC certificate issued by Norway Petroleum Safety Authority, and is expected to commence operation in Norwegian North Sea soon. COSLBOSS and BH8 won overseas contracts from Indonesia, while HYSY936 won a long-term service contract from PetroleosMexicanos. HYSY921 successfully completed a drilling operation for turnkey services, accumulating experience for the Group in international offshore turnkey services. NH6 continued to focus on the Australia market and provided drilling services to clients there.
COSL CEO and President Mr. Li Yong said: "Looking forward into 2013, the Group expects the operational environment to be steady in general. While strengthening our position as a leading oilfield services provider in offshore China, the group will also continue its efforts in expanding to overseas markets, while strengthening its management capabilities on the equipment in operation and focusing on developing capacities of the new equipment. Leveraging our edges in technology and high-quality services to domestic and overseas clients, COSL will strive to create better returns for our shareholders."
