China Oilfield Services (2883) AI Stock Analysis

• Market Cap: HK$56.10B
• Dividend Yield: 3.76%
• Average Volume (3M): 12.20M
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.60
• Revenue Growth: 2.58%
• EPS Growth: 7.10%
• Country: HK
• Employees: 15,509
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.22
• Shares Outstanding: 1,811,124,000
• 10 Day Avg. Volume: 11,310,219
• 30 Day Avg. Volume: 12,197,884
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$9.56
• Price Target Upside: 43.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: HK$7.50 ▲(12.61% Upside)

China Oilfield Services has a strong valuation with an attractive P/E ratio and dividend yield, contributing positively to the overall score. Financial performance is solid, with strong profit margins and stable leverage, though cash flow challenges are noted. Technical analysis indicates weak momentum, slightly dampening the overall score.

China Oilfield Services Business Overview & Revenue Model

Company Description

China Oilfield Services Limited, together with its subsidiaries, provides integrated offshore oilfield services in Mainland China and internationally. The company operates through four segments: Drilling Services, Well Services, Marine Support Services, and Geophysical Acquisition and Surveying Services. The Drilling Services segment provides jack-up drilling rig, semi-submersible drilling rig, modular rig, and land drilling rig services; and casting and tubing, and running pipe inspection and repair services. This segment operates and manages 36 jack-up drilling rigs, 12 semi-submersible drilling rigs, and 6 modular rigs. The Well Services segment offers onshore and offshore well services, including logging, drilling and completion fluids, directional drilling, cementing, well completion and workover, stimulation, and oilfield production optimization. The Marine Support Services segment offers anchor handling, towing of drilling rigs/engineering barges, oil lifting, offshore transportation, standby, firefighting, rescue, oil spill assisting, and other marine support services. It operates and manages approximately 130 vessels, including anchor-handling tug/supply, platform supply, and multi-purpose vessels, as well as barges and shuttle-tankers. The Geophysical Acquisition and Surveying Services segment provides marine seismic acquisition, offshore geo-surveying, seismic data processing and interpretation, and underwater engineering services. This segment owns 6 seismic vessels, 2 ocean bottle cable teams, and 5 engineering surveying vessels. China Oilfield Services Limited also issues bonds. The company is based in Sanhe, China. China Oilfield Services Limited is a subsidiary of China National Offshore Oil Corporation.

How the Company Makes Money

China Oilfield Services Limited generates revenue through a diversified portfolio of oilfield services. The company's key revenue streams include drilling services, where it provides offshore drilling rigs and related services to explore and extract oil and gas. Well services contribute to revenue by offering services such as logging, cementing, and testing to enhance oil well productivity and safety. Marine support services provide logistics, transportation, and supply chain services essential for offshore operations. Geophysical services, which involve seismic data acquisition and interpretation, help oil companies identify potential oil and gas reserves. COSL's earnings are significantly influenced by its strategic partnerships with major national and international oil companies, enabling it to secure long-term contracts and maintain a steady revenue flow. Additionally, fluctuations in global oil prices and exploration activity levels are critical factors impacting its financial performance.

China Oilfield Services Financial Statement Overview

Summary

China Oilfield Services demonstrates solid financial health with consistent revenue growth and strong profit margins. The balance sheet is stable with manageable leverage and good equity levels. However, challenges in cash generation are indicated by the decline in free cash flow growth.

Income Statement

China Oilfield Services has shown consistent revenue growth with a solid TTM revenue increase of 1.34%. Gross profit margin stands at a robust 15.97%, while net profit margin is strong at 6.92%. The company demonstrates healthy operational efficiency with an EBIT margin of 10.37% and an EBITDA margin of 11.34%. These figures signal strong profitability and operational stability.

Balance Sheet

The debt-to-equity ratio is moderate at 0.23, indicating prudent leverage. Return on equity is decent at 7.58%, reflecting effective utilization of shareholder funds. The equity ratio is solid at 53.62%, suggesting financial stability, though there is room for improvement in asset efficiency.

Cash Flow

The free cash flow growth rate is negative, indicating challenges in cash generation. However, the operating cash flow to net income ratio is healthy at 0.75, suggesting cash flow reliability. The free cash flow to net income ratio is also strong at 0.14, underscoring effective cash management despite the decline in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.09B	48.30B	44.11B	35.66B	29.20B	28.96B
Gross Profit	7.88B	7.58B	7.00B	4.38B	4.79B	6.67B
EBITDA	5.50B	10.56B	9.75B	7.92B	5.91B	8.45B
Net Income	3.51B	3.14B	3.01B	2.36B	313.18M	2.70B
Balance Sheet
Total Assets	83.97B	82.95B	83.25B	77.18B	73.31B	75.94B
Cash, Cash Equivalents and Short-Term Investments	7.22B	11.47B	12.72B	9.23B	10.82B	12.13B
Total Debt	11.33B	10.09B	21.62B	22.22B	23.44B	25.81B
Total Liabilities	38.55B	38.52B	40.99B	37.29B	35.10B	37.25B
Stockholders Equity	44.70B	43.80B	41.64B	39.33B	38.03B	38.51B
Cash Flow
Free Cash Flow	-641.33M	4.99B	3.62B	2.76B	3.67B	3.36B
Operating Cash Flow	-494.74M	11.02B	13.10B	6.90B	7.42B	7.55B
Investing Cash Flow	-4.86B	-5.08B	-7.46B	-3.73B	-4.73B	-3.34B
Financing Cash Flow	-4.86B	-6.46B	-3.28B	-4.87B	-4.20B	-727.05M

China Oilfield Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2883, the sentiment is Negative. The current price of 6.66 is below the 20-day moving average (MA) of 7.03, below the 50-day MA of 7.08, and above the 200-day MA of 6.52, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 11.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2883.

China Oilfield Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3337	74 Outperform	4.02B	11.93	6.94%	1.94%	10.16%	49.48%
2883	68 Neutral	HK$56.10B	8.47	8.06%	3.76%	2.58%	7.10%
3303	60 Neutral	1.15B	16.77	8.51%	2.83%	-59.96%	-83.53%
1623	59 Neutral	329.11M	-0.91	0.00%	―	-2.11%	-779.00%
0568	48 Neutral	4.48B	-14.84	-8.88%	―	38.46%	14.55%
1921	46 Neutral	9.32B	-365.64	-5.86%	0.65%	4.15%	-432.65%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

China Oilfield Services Corporate Events

China Oilfield Services Reports Strong Interim Financial Results for 2025

China Oilfield Services reported its interim financial results for the first half of 2025, achieving a revenue of RMB23,295.1 million and a profit from operations of RMB2,908.6 million. The company’s profit for the period was RMB2,076.8 million, with basic earnings per share at RMB0.41. Despite facing challenges such as depreciation and employee compensation costs, the company managed to maintain profitability, reflecting its strong operational capabilities and market positioning.

The most recent analyst rating on (HK:2883) stock is a Buy with a HK$8.60 price target. To see the full list of analyst forecasts on China Oilfield Services stock, see the HK:2883 Stock Forecast page.

China Oilfield Services Proposes Governance Amendments

China Oilfield Services Limited has announced proposed amendments to its Articles of Association, including the cancellation of its Supervisory Committee, with its functions being transferred to the audit committee of the Board. These changes are in response to updates in the Company Law of the People’s Republic of China and other regulatory requirements, aiming to streamline governance and align with current legal standards. The Board believes these amendments will not adversely affect shareholders’ rights and are in the best interest of the company and its stakeholders, supporting its business development.

The most recent analyst rating on (HK:2883) stock is a Buy with a HK$8.60 price target. To see the full list of analyst forecasts on China Oilfield Services stock, see the HK:2883 Stock Forecast page.

China Oilfield Services to Present 2025 Interim Results

China Oilfield Services Limited announced its plans to release the 2025 interim results on August 26, 2025, with a subsequent results presentation scheduled for August 27, 2025. The presentation aims to provide investors with a comprehensive understanding of the company’s business condition and address investor concerns, potentially impacting stakeholder perceptions and market positioning.

The most recent analyst rating on (HK:2883) stock is a Buy with a HK$11.00 price target. To see the full list of analyst forecasts on China Oilfield Services stock, see the HK:2883 Stock Forecast page.

China Oilfield Services to Review Interim Results in Upcoming Board Meeting

China Oilfield Services Limited has announced a board meeting scheduled for August 26, 2025, to consider and potentially approve the interim results for the first half of the year. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, impacting stakeholders and potentially influencing its market positioning.

The most recent analyst rating on (HK:2883) stock is a Buy with a HK$11.00 price target. To see the full list of analyst forecasts on China Oilfield Services stock, see the HK:2883 Stock Forecast page.