China Oilfield Services (CHOLF) Q3 2026 Earnings Report

The call was predominantly positive. Management reported high equipment utilization, improving operating efficiency, stable-to-improving sector profitability, drilling performance above expectations, positive third-quarter operating cash flow, and clear plans for international and equipment expansion. These strengths were tempered by modest 3% year-on-year third-quarter revenue growth, a foreign-exchange loss that increased to RMB 720 million for the first nine months, CapEx below the RMB 8.4 billion initial guidance, tight equipment availability, and more challenging execution requirements under the 15th Five-Year Plan.

Management said this year’s workload plan is “better than the expectation” set at the beginning of the year, international business accounts for “between 24% or 25%” of revenue and will be brought to the “next order of magnitude,” and technical services can sustain a “17% to 18% operating profit level,” with operating profit at 17.1% for the first half and 17.2% for the first 9 months; drilling operating profit was 15.5% for the first half and “16% roughly” for the third quarter. Third-quarter revenue growth was 3% year-on-year, and management said it can “maintain slight growth” for revenue this year, with “continued revenue growth” from overseas business if everything goes well. Equipment holdings will increase during the 15th Five-Year Plan period, while vessel utilization should be “100% if not 100%,” or “as high -- as much as we can,” with “full utilization.” CapEx for the first 3 quarters was less than RMB 3 billion versus beginning-of-year guidance of RMB 8.4 billion, and full-year CapEx should be “almost on par with the situation last year, but might be slightly less than the guidance given at the beginning of the year.”