COSL(HK:02883)2020-09-10 09:08Financial Performance - In the first half of 2020, the company achieved operating revenue of RMB 14.497 billion, an increase of RMB 0.94 billion or 7% year-on-year[6]. - The net profit for the same period was RMB 1.723 billion, up RMB 0.74 billion or 75% year-on-year[6]. - The company's operating revenue for the first half of 2020 was RMB 14,496.7 million, an increase of RMB 944.6 million year-on-year[14]. - The net profit for the first half of 2020 was RMB 1,722.6 million, an increase of RMB 736.2 million year-on-year[14]. - The operating profit for the first half of 2020 was RMB 2,222.0 million, an increase of RMB 620.9 million compared to the operating profit of RMB 1,601.1 million in the same period last year[33]. - The basic earnings per share for the first half of 2020 were RMB 35.93, compared to RMB 20.39 in the same period last year, reflecting a growth of 76.3%[41]. - The total comprehensive income for the period was RMB 1,754,675 thousand, compared to RMB 939,943 thousand in the same period last year, reflecting an increase of 86.7%[81]. - The company's profit before tax for the six months ended June 30, 2020, was RMB 2,090,688,000, compared to RMB 1,382,122,000 for the same period in 2019, representing a year-on-year increase of 51.2%[126]. Revenue Segmentation - The drilling services revenue for the first half of 2020 was RMB 6,171.0 million, a 37.5% increase from RMB 4,489.2 million in the same period last year[15]. - The oilfield technical services revenue decreased by 8.7% to RMB 6,050.4 million from RMB 6,624.2 million year-on-year[19]. - The company's vessel services revenue increased by 6.5% to RMB 1,534.3 million, with external chartered vessels contributing RMB 541.3 million[21]. - Revenue from drilling services was RMB 6,173,943 thousand, while oilfield technical services generated RMB 6,059,880 thousand, indicating a strong performance in both segments[107]. - Revenue from the China National Offshore Oil Corporation (CNOOC) group for drilling services was RMB 3,029,551 thousand, oilfield technical services RMB 5,466,345 thousand, and vessel services RMB 1,407,964 thousand for the six months ended June 30, 2020[156]. Cost Management and Expenses - The company has implemented significant cost reduction measures, maximizing the reduction of external drilling platform and vessel leasing costs[9]. - The company's total operating expenses for the first half of 2020 were RMB 12,452.1 million, an increase of RMB 470.2 million or 3.9% compared to the same period last year[28]. - The company's rental expenses increased by RMB 94.2 million year-on-year, reflecting a growth of 16.9%[29]. - The total operating expenses in the geophysical acquisition and engineering survey services segment were RMB 841.9 million, a decrease of 14.6% year-on-year[32]. Technology and Innovation - The company has made notable advancements in technology, including successful trials of a high-temperature ESCOOL system and underwater release plug system[8]. - The company achieved significant technological advancements, including successful trials of various new drilling and cementing technologies[20]. - The company launched several key technology applications, including the successful trial of a 235℃ ultra-high temperature ESCOOL system and the first domestic underwater release plug system for deep-water cementing[196]. Market Expansion and International Operations - The company has expanded its market presence, securing new projects in the Asia-Pacific, Middle East, and Americas regions[7]. - The company successfully launched four drilling platforms in Asia and secured a 600-day contract in the Americas[15]. - The company is actively involved in international operations, with subsidiaries in regions such as Indonesia, Australia, and Mexico, enhancing its market presence[88]. Financial Position and Assets - Total assets as of June 30, 2020, were RMB 81,427.3 million, an increase of RMB 5,325.5 million or 7.0% from RMB 76,101.8 million at the end of 2019[42]. - Total liabilities increased by RMB 4,334.3 million or 11.1%, from RMB 39,191.5 million at the end of 2019 to RMB 43,525.8 million[42]. - Cash and cash equivalents increased significantly by 180.0% to RMB 9,417.1 million from RMB 3,363.6 million at the beginning of the year[43]. - The company's net current assets increased to RMB 10.55 billion from RMB 3.20 billion as of December 31, 2019, with the current ratio rising from 1.16 to 1.57[67]. Debt and Financing - The company successfully issued USD 800 million senior bonds, achieving the lowest comprehensive cost in its history and the highest oversubscription rate[9]. - The company issued $500 million 1.875% guaranteed senior notes due in 2025 and $300 million 2.500% guaranteed senior notes due in 2030 on June 24, 2020[74]. - The company reported a significant impairment loss of RMB 843.8 million on property, plant, and equipment, attributed to the settlement with Equinor and projected future cash flows[31]. - The company has seen a decrease in interest-bearing bank loans from RMB 809.96 million to RMB 515.21 million from December 31, 2019, to June 30, 2020[68]. Safety and Compliance - The OSHA recordable incident rate for safety performance was reported at 0.094, indicating a stable safety production situation[10]. - The QHSE management system was further strengthened, with an OSHA recordable incident rate of 0.094, indicating stable safety production conditions[198]. Future Outlook - The outlook for the second half of 2020 indicates a slow recovery in the industry, with the IMF predicting a global economic contraction of 4.9%[53]. - The company plans to continue focusing on market expansion and new technology development to drive future growth[84]. - The company aims to enhance its international operational management capabilities and continue to focus on technological development and internationalization strategies[11].