China Oilfield Services Limited: history, ownership, mission, how it works & makes money

A Brief History of China Oilfield Services Limited

China Oilfield Services Limited (COSL), established in 2002, is a publicly traded oilfield services company headquartered in Beijing. COSL operates under the umbrella of China National Offshore Oil Corporation (CNOOC), which holds a significant stake in the company.

As of 2021, COSL's revenue was approximately RMB 19.18 billion (around USD 2.98 billion), showing a rebound from a decline in 2020 due to the impacts of the COVID-19 pandemic. The company specializes in a range of services, including drilling, well completion, and maintenance, primarily for offshore oil and gas operations.

In 2019, COSL reported its revenue at RMB 30.02 billion (approximately USD 4.25 billion), indicating a significant drop in 2020 when revenue fell to RMB 15.67 billion (around USD 2.43 billion). The decline was primarily attributed to global oil price drops and decreased demand for services amid the pandemic.

The company has a fleet of over 40 offshore drilling rigs, including semi-submersibles and jack-ups. In 2021, COSL's operating profit margin recovered to around 11.8% from 1.5% in 2020, driven by an increase in crude oil prices, which averaged over USD 70 per barrel by mid-2021.

In international markets, COSL has expanded its services beyond China, penetrating regions like Southeast Asia, the Middle East, and West Africa. This expansion strategy has been marked by acquisitions and partnerships that enhance its technological capabilities and service breadth.

The global oil market's recovery in 2021 led to an uptick in drilling activities, positioning COSL favorably. The company secured contracts totaling USD 925 million in 2021 alone, reflecting an increasing demand for oilfield services.

Looking forward, COSL is investing in offshore wind farm projects and sustainable energy solutions, aligning with global trends towards renewable energy. As of mid-2023, the company is actively developing several projects expected to diversify its portfolio and stabilize revenue streams in an increasingly volatile market.

Overall, COSL continues to be a prominent player in the oilfield services sector, adapting to changes in the industry promptly while leveraging its extensive resources and experience.

A Who Owns China Oilfield Services Limited

China Oilfield Services Limited (COSL) is a major player in the offshore oil and gas services sector, primarily engaged in providing a variety of services, including drilling, logging, and seismic data acquisition. The ownership of COSL is concentrated among several key stakeholders.

As of the latest available data, the largest stakeholder of COSL is China National Offshore Oil Corporation (CNOOC), which holds a significant percentage of shares. According to their 2022 annual report, CNOOC owns approximately 63.4% of the total shares.

The remaining shares are held by various institutional and individual investors. The shareholder structure can be illustrated in the following table:

In terms of market capitalization, COSL reported approximately HKD 30.8 billion as of October 2023. The company has seen fluctuations in its stock price, reflecting broader trends in the oil and gas market.

For the financial year ending December 31, 2022, COSL reported total revenue of RMB 22.1 billion, with a net profit margin of 15.2%. This was an increase from a revenue of RMB 20.5 billion in 2021, demonstrating steady growth driven by increased offshore drilling activities.

Furthermore, COSL's earnings per share (EPS) stood at RMB 1.15 for the fiscal year 2022, up from RMB 0.98 in 2021, indicating an improvement in profitability and efficient cost management.

Overall, the ownership of China Oilfield Services Limited is predominantly controlled by state-owned entities, with substantial backing from institutional investors. This structure reflects the strategic importance of COSL within the Chinese energy sector and its role in supporting national oil and gas exploration efforts.

China Oilfield Services Limited Mission Statement

China Oilfield Services Limited (COSL) is a key player in the offshore oil and gas industry. Its mission statement emphasizes the commitment to providing high-quality, efficient, and environmentally responsible exploration and production services. The company aims to leverage advanced technology and skilled personnel to meet the diverse needs of its clients in the energy sector.

The company places a strong emphasis on safety, operational excellence, and sustainability as part of its core values. COSL's mission reflects its dedication to delivering superior services while minimizing the environmental impact of its activities.

In 2022, COSL reported a revenue of approximately RMB 24.8 billion, a growth of 8.4% compared to 2021. The operating profit for the same period was around RMB 3.7 billion, with a net profit margin of 14.9%.

In pursuit of its mission, COSL continues to innovate by integrating cutting-edge technologies in drilling and well services, with significant investments in research and development. In 2022, the company's R&D expenditure reached RMB 1.2 billion, accounting for approximately 4.8% of total revenue.

The emphasis on environmentally friendly practices has led COSL to adopt sustainable operating models, targeting a reduction in carbon emissions by 25% by 2030. These initiatives align with global energy transition trends, showcasing COSL's commitment to sustainability and responsible resource management.

Furthermore, COSL's strategic partnerships with global oil and gas companies enhance its competitive edge. Collaborations with firms like PetroChina and Sinopec not only improve operational capabilities but also align with its mission of delivering value through strategic alliances.

As COSL continues to expand its footprint internationally, the mission statement remains a guiding principle in navigating the complexities of the global energy market. The company aims to enhance its service offerings and operational efficiencies to better serve the growing demands of energy production while adhering to its core values of safety and sustainability.

How China Oilfield Services Limited Works

China Oilfield Services Limited (COSL) is a prominent provider of integrated oilfield services to global oil and gas companies. Founded in 2001, COSL operates in multiple segments, including drilling services, well services, geophysical services, and marine support services. The company is a subsidiary of China National Offshore Oil Corporation (CNOOC). As of 2023, COSL operates a fleet of 29 drilling rigs, including jack-up rigs and semi-submersibles.

In 2022, COSL generated revenue of approximately RMB 42.7 billion (around USD 6.1 billion), up by 18% compared to the previous year. This growth was attributed to rising crude oil prices and increased demand for offshore drilling services, driven by improving market conditions. The average daily revenue per rig was reported at USD 120,000.

The company operates primarily in offshore oil and gas exploration, employing advanced technologies to enhance recovery rates and minimize operational risks. COSL's drilling division is notable for its comprehensive services, from exploration drilling to completion. In 2022, COSL completed a total of 76 wells.

In the well services segment, COSL offers a variety of services, including workover, cementing, and coiled tubing. This division reported revenues of approximately RMB 12.4 billion in 2022, representing an increase of 10% year-over-year. With a fleet of specialized vessels, COSL also provides marine support services, which includes logistics and transportation for offshore operations.

As of mid-2023, COSL’s market capitalization stood at approximately USD 8.7 billion. The company's financial stability is supported by a low debt-to-equity ratio of 0.4, which allows for greater flexibility in financing future projects and potential expansions. COSL's total assets were valued at approximately RMB 82.1 billion, with net income for the year reaching RMB 7.8 billion, an increase of 25% from the prior year.

Strategically, COSL aims to expand its services in international markets, focusing on regions such as Southeast Asia, the Middle East, and South America. The company’s emphasis on technological advancement includes the deployment of advanced drilling techniques and digital solutions to optimize operations.

In terms of corporate social responsibility, COSL has initiated several projects aimed at reducing environmental impacts and enhancing sustainability in its operations, aligning with China's broader goals towards green energy and environmental governance.

How China Oilfield Services Limited Makes Money

China Oilfield Services Limited (COSL) is a key player in the oil and gas industry, primarily generating revenue through various segments, including drilling services, well services, and marine support services. In 2022, COSL reported total revenues of approximately RMB 36.72 billion, reflecting a significant increase from RMB 31.48 billion in 2021.

Revenue Breakdown

The company's revenue is mainly derived from the following service segments:

• Drilling Services: This segment is the largest contributor, accounting for about 55% of total revenue in 2022.
• Well Services: This segment contributed approximately 20% to the total revenue, providing essential support for effective oil extraction.
• Marine Support Services: This segment generated around 15% of total revenue, facilitating various marine operations.
• Others: The remaining 10% comes from ancillary services and technology support.

Drilling Services

COSL's drilling services include offshore and onshore drilling operations. The company operates a fleet of advanced drilling rigs. In 2022, COSL deployed an average of 27 offshore drilling rigs, leading to a utilization rate of 85%. The average day rate for these rigs was approximately RMB 350,000.

Well Services

The well services segment offers a range of activities, including well completion, workover, and stimulation services. In 2022, COSL completed approximately 1,200 well interventions, increasing operational efficiency and enhancing production capabilities for clients.

Marine Support Services

Marine support operations include transportation, supply, and subsea support. COSL operates a fleet of over 60 specialized vessels. The average utilization of these vessels in 2022 was reported at 75%, with an average charter rate of RMB 200,000 per day.

Geographical Revenue Distribution

China Oilfield Services Limited also derives revenue from international markets. In 2022, approximately 30% of total revenue was generated from overseas operations, particularly in regions such as the Middle East and Africa.

Market Trends Impacting Revenue

The demand for oil and gas services has been impacted by various market trends. For instance, the global oil price averaged around $95 per barrel in 2022, driving investment in upstream exploration and production activities. As a result, COSL has seen increased demand for its services, evidenced by the growth in new contracts.

In 2022, COSL secured contracts worth approximately RMB 18.2 billion, marking a year-on-year increase of 25%. Additionally, the company is expanding its sustainability initiatives, aiming to diversify its service offerings to include renewable energy-related services in the coming years.

Overall, China Oilfield Services Limited generates its revenue through a diversified portfolio of services that align with growing global energy demands and market dynamics.