COSL Doubles Net Profit in 3Q

COSL 931 Jackup
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COSL has announced its unaudited results for the nine months ended September 30, 2008. Thanks to stable clientele, ongoing improvements in operating capabilities, the Company achieved stable income growth during the period under review.

Revenue during the period amounted to RMB 8,194.6 million, representing an increase of 23.1% from the corresponding period last year. Net profit increased by 61.7% to RMB2,749.1 million. Basic earnings per share were 61 RMB cents, up 45.2% from that of the same period last year. Besides, number of operating days of the 4 module rigs in the Gulf of Mexico amounted to 1,076 (yet to be included in the tables below), achieving a calendar day utilization rate of 98.2%.

On drilling services, during the course of the three quarters to 30 September 2008, the Company's rig fleet continued to operate at full capacity with available day utilization rate maintained at 100%. Total number of operating days achieved was 3,722 days, 295 days or 7.3% less than that of the same period last year. The reduction was attributed to the upgrading of jackup rig COSL931; and longer maintenance periods for some of the vessels, at 335 days more than that the same period last year; offsetting the benefits from the addition into the fleet of the new rig COSL942 and the 40 additional operating days resulting from the higher number of calendar days available during the period under review.

On well services, except for the 14.8% year-on-year reduction in work volume of cementing operation, work volumes of all other operations exhibited trends pointing to increases. The revenue from cementing operation registered an increase despite lower work volume, thanks to deployment of high value-added materials in complicated well operating environment.

On marine support and transportation services, the number of operating days of the self-owned working vessels (70) decreased by 3.1% compared with the corresponding period last year, mainly attributable to the disposal of one vessel as it reached the end of its useful life and suspension of two vessels as their marine certificates expired. However, in order to enhance the operation capability, the Company leased 5 utility vessels from the Eastern Marine Services Limited and other companies, achieving a total of 1,643 operating days.

On geophysical services, COSL719, the 8-streamer vessel commenced operation in March 2008, achieved 3D data collection operation volume aggregating 2,780 sq. km. Meanwhile, COSL718, which has started its operation Myanmar since early this year, added 1,133 sq. km. of operation volume. These two new vessels helped the Company achieved a strong 44.9% increase in 3D data collection. The volume of 2D data processing business was down 25.1% from the corresponding period last year due to declining market demand in the Bohai Sea Region.

Yuan Guangyu, CEO and President of the Company, said, "Whereas the global economy has been battered by the so-called tsunami in international financial markets, the successful completion of our Awilco's acquisition, when coupled with our efforts in actively expanding our facilities, our proprietarily developed technologies and the across-the-board increase in work volume, helped us consistently achieve an enviable growth in our operating results. And we shall continue to identify opportunities, develop new markets and launch new businesses prudently in markets around to world and achieve higher returns for shareholders."

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