China: COSL Announces Growth in Revenue in First Quarter 2012

China Oilfield Services Limited, announced its unaudited results for the three months ended 31 March 2012.

During the first quarter of 2012, the Group actively consolidated its presences in existing markets and continuously explored new domestic and overseas markets. Revenue for the first quarter of the year amounted to RMB4,794.5 million, representing an increase of 25.9% when compared with RMB3,809.4 million for the last corresponding period. Net profits amounted to RMB1,196.7 million, representing an increase of 23.7% when compared with RMB967.1 million for the last corresponding period. Basic earnings per share were RMB0.27, representing an increase of RMB0.06 from last corresponding period.

On drilling services, a total of 2,667 operating days were achieved by the Group’s drilling platforms during the three months ended 31 March 2011, representing an increase of 442 days or 19.9% over the last corresponding period. Among which, jack-up drilling platforms achieved 2,305 operating days, representing an increase of 308 days over the last corresponding period, mainly attributable to an addition of 439 days for the period by the six drilling platforms, namely HYSY921, HYSY922, HYSY923, HYSY924, COSLSeeker and COSLConfidence, while maintenance of the three drilling platforms, namely BH8, BH9 and COSL936, resulted in 149 fewer operating days and other drilling platforms added 18 more days. Semi-submersible drilling platforms achieved 362 operating days, representing an increase of 134 days over the last corresponding period, mainly due to an addition of 129 operating days by equipment such as COSLPioneer. During the period, the drilling platform NH6 operated 39 more days over the last corresponding period due to a shorter period spent on maintenance while the drilling platform NH2 operated 35 fewer days due to maintenance.

Available day utilization rate increased 5.6 percentage points to 99.9%. Calendar day utilization rate slightly increased to 93.2% due to a shorter period of maintenance.

In addition, the calendar day utilization rate of two accommodation platforms of the Group was 100.0%. The four module platforms working in Gulf of Mexico operated 248 more days over the last corresponding period with a calendar day utilization rate of 99.7% after upgrading and modification.

On marine support and transportation services, a total of 5,914 operating days were achieved by self-owned fleet during the three months ended 31 March 2012, representing a decrease of 706 days or 10.7% from last corresponding period, mainly attributable to a decrease of 289 days as a result of suspension of operation and maintenance of six vessels due to mechanical failure, a decrease of 228 days as a result of retirement of three vessels, a decrease of 180 days as a result of modification of two ships into surveying vessels and a decrease of 9 days by other vessels as a result of market factors. Influenced by the increase in number of non-business days for the period, calendar day utilization rate declined to 89.1%, representing a decrease of 9.4 percentage points from the last corresponding period.

On well services, the Group’s achieved higher workload for most operations, except cementing, during the period.

On geophysical and surveying services, operation volume of the Group’s 2D data collection dropped while operation volume of the Group’s 3D data collection increased materially. A total of 1,215 km of 2D data was collected, representing a decrease of 78.1% or 2,495 km from the last corresponding period, mainly due to the modification of BH517 into an offshore bed cable vessel, as well as the volume of 2D data collected by BH511 and NH502, which decreased 2,019 km in total. A total of 6,797 km2 of 3D data was collected, representing an increase of 241.2%, mainly due to the 4,697 km2 additional volume achieved by HYSY719 and the new equipment HYSY720.

As for data processing business, a total of 2,154 km2 of 3D data was processed, representing an increase of 164.4% from the last corresponding period.

COSL Group CEO and President Mr. Li Yong said: “During the first quarter of 2012, our large-scale equipment was operating at full capacity in both domestic and international markets. The Group expects to maintain stable organic growth with new equipment gradually commencing operations. We will tap demand for new businesses to ensure high utilization of our large-scale equipment and secure our leadership positions in each of the business segments. We will further exploit our potential and seize the opportunity to explore new markets and work diligently to meet our full-year performance targets.”

[mappress]
Subsea World News Staff , April 26, 2012;  Image: COSL