China Oilfield Services Limited ("COSL"), the leading integrated oilfield services provider in the offshore China market, announced its unaudited results for the three months ended March 31, 2009.
During the period under review COSL continued its integration following the acquisition concluded last September. Buoyed by the highly efficient operation of the new facilities and after including the first-quarter contribution from CDE (formerly Awilco Offshore ASA, renamed as COSL Drilling Europe as, "CDE" after concluding the acquisition in September 2008), COSL saw its revenue for the first quarter rose to RMB3,928.6 million, up 56.9% from RMB2,503.6 million in the last corresponding period. Net profit for the quarter was RMB960.2 million, up 7.7% year on year. Basic earnings per share were RMB0.21, up RMB0.01 year on year.
On drilling services, with addition of the rig fleet from CDE, a total of 1,948 operating days were achieved, up 767 days or 64.9% from the same quarter last year. The available-day utilization rate was maintained at a high level of 96.6% while the calendar-day utilization rate climbed 10.1 percentage points to 96.6%.
On well services, except for a decline in number of wells that needed drilling fluid services to 44 from 67 in the first quarter last year, work volumes of all other operations exhibited healthy trends pointing to increases.
On marine support and transportation services, the number of operating days achieved increased 4.5% to 6,247 from 5,978 in the first quarter last year.
On geophysical services, 3D data collection operation volume aggregated 1,774 sq.km. while 3D data processing volume during the period aggregated 1,954 sq.km.
Mr. Lu Jian, CEO of COSL, said, "As oil prices continued to stayat low levels, investment plans of oil companies, and thus service prices of oilfield service providers are inhibited, intensifying competition among participants and in turn inflicting pressure on service prices. COSL will continue to optimize our capital structure and strive to enhance our return on equity. We shall continue to expand into overseas markets leveraging our leading position in the domestic market. We shall speed up our migration into a true global company and integration with newly acquired units. We shall endeavor to create better value for our shareholders."