COSL Announces 2003 Annual Results

China Oilfield Services Limited announced its annual results for the year ended December 31, 2003. Highlights

  • Turnover increased by 12.3% to RMB 3,062.3 million
  • Profit from operations increased by 13.8% to RMB 549.8 million
  • Net profit surged 31.5% to RMB 465.9 million
  • Basic earnings per share were RMB 11.66 cents
  • Proposed final dividend per share of RMB 2.27 cents

  •     Financial Summary
                                                2003                2002  Change
                                         RMB million         RMB million     (%)
         Turnover                            3,062.3             2,725.8    12.3
         Profit from operations                549.8               483.0    13.8
         Profit attributable to
          shareholders                         465.9               354.4    31.5
         Earnings per share          RMB 11.66 cents      RMB12.84 cents   (10.1)
    Turnover in 2003 amounted to RMB3,062.3 million, representing a 12.3% increase over 2002. All of the Company's four business segments, drilling services, well services, marine support and transportation services, and geophysical services, achieved growth with turnover increasing by 20.5%, 0.1%, 4.9% and 22.8% respectively. Net profit amounted to RMB465.9 million, representing an increase of 31.5% from the net profit of RMB354.4 million in 2002. The Board of Directors has recommended a final dividend of RMB2.27 cents per share for the year ended December 31, 2003.

    Commenting on the encouraging results for the year 2003, Mr. Yuan Guangyu, CEO and President of the Company, stated, "COSL has managed to record another year of impressive growth and development. The increase in turnover was attributable to a substantial increase in turnover from drilling and geophysical services. Riding on the higher global demand for oil and gas, higher oil prices and increased exploration, development and production activities from exploration and production companies, the demand for oilfield services remained relatively high. As one of our long-term development strategies, we will continue to synergize and integrate our services so that we can offer more professional, more efficient and more cost-effective services to our customers."

    The turnover from drilling services contributed to 41.9% of the total turnover, having increased by 20.5% to RMB1,282.5 million in 2003. The number of exploration wells drilled by the Company remained the same as last year at 57 wells, while the number of development wells surged to 139 wells, as compared to 66 wells last year. Overall performance of the drilling segment improved in 2003 as a result of higher day rates and better utilization of jack-up rigs, and the well worker days continued its upward trend in 2003.

    The turnover from well services increased by 0.1% to RMB672.5 million in 2003, contributing to 22.0% of the total turnover.

    The turnover from marine support and transportation services was RMB632 million in 2003, representing an increase of 4.9% over the previous year. This segment contributed to 20.6% of the total turnover. This increase was mainly attributable to higher day rates and increased number of operating days subsequent to the addition of five new built vessels to our fleet in the months of February, April, June, October and November in 2003, respectively.

    Turnover from geophysical services increased by 22.8% to reach RMB475.3 million in 2003, representing to 15.5% of the total turnover. The significant increase in revenue from geophysical services resulted from an increase in domestic services demand, the price charged for COSL's 3D seismic services and the rise in sale of multi-client data information in the Gulf of Mexico.

    Mr. Yuan further commented, "COSL has always been eyeing business expansion in the onshore and overseas markets. We will make further headway into the international market and to selectively pursue other overseas markets with high potentials. We have set high standards for the Company to achieve. Last but not least, COSL is committed to achieving greater success in its business operations and to maximizing returns to our shareholders."