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China Oilfield Services
(2883)
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Rating:65Neutral
Price Target:
HK$7.50
▲(3.02% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improved underlying profitability and a generally healthy balance sheet, supported by a moderate P/E and a solid dividend yield. These positives are tempered by uneven cash conversion and a weak technical trend (trading below key moving averages). Earnings-call commentary adds a modest positive tilt due to strong Q1 operational performance and contract wins, but cautious guidance, FX losses, and regional/maintenance risks limit upside.
Positive Factors
Improved margins and profitability
Sustained net margins near 6–8% and a TTM gross margin ~17% reflect better pricing, cost control and scale in core services. That margin improvement supports durable earnings power, buffers cyclical revenue swings and enables reinvestment into higher-margin well services over the next several quarters.
Negative Factors
Weak free cash flow conversion
FCF materially below net income and sharply negative FCF growth indicate capital spending and working-capital swings are outpacing earnings. Poor cash conversion limits sustainable dividend funding, reduces reserve for capex, and raises sensitivity to cycle downturns over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved margins and profitability
Sustained net margins near 6–8% and a TTM gross margin ~17% reflect better pricing, cost control and scale in core services. That margin improvement supports durable earnings power, buffers cyclical revenue swings and enables reinvestment into higher-margin well services over the next several quarters.
Read all positive factors
China Oilfield Services (2883) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$56.40B
Dividend Yield4.45%
Average Volume (3M)7.63M
Price to Earnings (P/E)15.4
Beta (1Y)0.67
Revenue Growth6.80%
EPS Growth14.80%
CountryHK
Employees15,533
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.73
Shares Outstanding1,811,124,000
10 Day Avg. Volume11,354,238
30 Day Avg. Volume7,626,251
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)0.64
Price to Sales (P/S)0.60
P/FCF Ratio5.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$10.82Price Target Upside48.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.92
Revenue Forecast (FY)HK$52.32B
China Oilfield Services Business Overview & Revenue Model
Company Description
China Oilfield Services Limited (COSL), a subsidiary of China National Offshore Oil Corporation, is headquartered in Sanhe, China, and, along with its various operating units, delivers a comprehensive suite of offshore oilfield services both withi...
How the Company Makes Money
COSL makes money by providing contracted oilfield services and charging customers (typically oil and gas producers and operators) for the use of its equipment, vessels, crews, and specialized technical capabilities. Key revenue streams generally i...
China Oilfield Services Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational momentum: strong Q1 operating profit growth (+22% YoY), improved well-service margins (+2pp to 18.2%) and revenue growth in key segments, plus contract wins and geographic expansion (Brazil, Middle East, Kazakhstan). However, material challenges were highlighted including a sizeable Q1 exchange loss (CNY 303m), increased scheduled maintenance (jackups), Middle East disruptions, and notable oil-price and FX-driven forecasting uncertainty. On balance the operational strength and contract wins outweigh the financial and regional headwinds, though risks remain.Positive Updates
Strong Operating Profit Growth
Operating profit for Q1 2026 reached CNY 1.53 billion, an increase of 22% year-on-year; both domestic and overseas operating profits increased ~20% YoY, indicating broad-based improvement in core operations.
Negative Updates
Significant Exchange Losses
Q1 recorded exchange losses of approximately CNY 303 million, which is CNY 208 million higher than the same period last year; management noted continued FX exposure risk and potential for further losses if RMB appreciates.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Operating Profit Growth
Operating profit for Q1 2026 reached CNY 1.53 billion, an increase of 22% year-on-year; both domestic and overseas operating profits increased ~20% YoY, indicating broad-based improvement in core operations.
Read all positive updates
Company Guidance
Management gave cautious, market‑responsive guidance rather than firm full‑year day‑rate or volume targets, citing oil‑price volatility (spot topped >$110–$120 then slipped to ~$80+, with WTI briefly above Brent) and saying it will “maintain dynamic conversations” with clients (notably CNOOC) to align CapEx and resource allocation; they will provide resources as client plans change. They pointed to Q1 operating strength as context: operating profit CNY 1.53 billion (+22% YoY); drilling and well services improved (well‑service revenue CNY 6.07 billion, +5% YoY; well‑service net profit CNY 1.11 billion, +18% YoY; margin 18.2%, +2 percentage points YoY; domestic well‑service margin >20%), and one domestic semi‑sub reached ~100% utilization even as jackup repair days rose (with more scheduled across the year but offset by higher domestic/Norway/Brazil day rates). Management also flagged a CNY 303 million FX exchange loss (up CNY 208 million YoY) and said it is taking measures to reduce FX exposure, reiterated growth ambitions for the 15th Five‑Year Plan after revenue rose ~CNY30bn → CNY40bn → >CNY50bn during the 14th FYP, and emphasized securing long‑term contracts (EPC, cementing, Kazakhstan framework, Iraq work) to mitigate regional disruption.China Oilfield Services Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.13B | 50.28B | 48.30B | 44.11B | 35.66B | 29.20B |
| Gross Profit | 9.43B | 8.74B | 7.58B | 7.00B | 4.38B | 4.79B |
| EBITDA | 9.20B | 11.45B | 10.56B | 9.75B | 7.92B | 5.91B |
| Net Income | 3.47B | 3.84B | 3.14B | 3.01B | 2.36B | 313.18M |
Balance Sheet | ||||||
| Total Assets | 84.16B | 84.46B | 82.95B | 83.25B | 77.18B | 73.31B |
| Cash, Cash Equivalents and Short-Term Investments | 6.43B | 13.08B | 11.47B | 12.72B | 9.23B | 10.82B |
| Total Debt | 16.01B | 13.16B | 10.56B | 21.62B | 22.22B | 23.44B |
| Total Liabilities | 36.17B | 37.31B | 38.52B | 40.99B | 37.29B | 35.10B |
| Stockholders Equity | 47.30B | 46.57B | 43.80B | 41.64B | 39.33B | 38.03B |
Cash Flow | ||||||
| Free Cash Flow | 3.30B | 5.40B | 4.99B | 3.62B | 2.76B | 3.67B |
| Operating Cash Flow | 7.88B | 11.29B | 11.02B | 13.10B | 6.90B | 7.42B |
| Investing Cash Flow | -4.35B | -5.17B | -5.08B | -7.46B | -3.73B | -4.73B |
| Financing Cash Flow | -3.94B | -4.04B | -6.46B | -3.28B | -4.87B | -4.20B |
China Oilfield Services Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | HK$56.40B | 15.43 | 8.30% | 4.45% | 6.80% | 14.80% | |
60 Neutral | HK$431.67M | -1,250.00 | -0.18% | 2.03% | -12.73% | 98.82% | |
55 Neutral | HK$2.63B | 6.89 | 8.59% | 4.89% | 11.66% | 11.67% | |
55 Neutral | HK$1.06B | -10.84 | -3.71% | 3.18% | -41.69% | -234.83% | |
44 Neutral | HK$6.27B | -2,291.18 | -0.56% | 2.15% | 48.39% | 98.65% | |
41 Neutral | HK$441.07M | 6.02 | 2.06% | 1.15% | 12.20% | ― |
* Energy Sector Average
HK:2883
China Oilfield Services
7.18
0.29
4.17%
HK:3337
Anton Oilfield Services Group
0.88
-0.37
-29.82%
HK:3303
Jutal Offshore Oil Services
0.42
-0.11
-20.95%
HK:0568
Shandong Molong Petroleum Machinery
4.76
0.68
16.67%
HK:1623
Hilong Holding Ltd.
0.26
0.11
74.50%
HK:2178
Petro-king Oilfield Services Ltd.
0.26
0.19
264.29%
China Oilfield Services Corporate Events
China Oilfield Services Sets Board Meeting to Approve 2026 Interim Results
Aug 5, 2026
China Oilfield Services Limited has announced that its board of directors will convene on 25 August 2026 to review and approve the company’s interim results for the six months ended 30 June 2026. The scheduled board meeting signals upcoming ...
China Oilfield Services Secures Shareholder Backing for Board Appointments at 2026 EGM
Jul 29, 2026
China Oilfield Services Limited held its first extraordinary general meeting of 2026 on 29 July, with shareholders representing about 66% of the issued share capital attending in person or by proxy. The meeting complied with Hong Kong and PRC regu...
China Oilfield Services Clarifies Board Composition and Committee Roles
Jul 29, 2026
China Oilfield Services Limited has outlined the composition of its board of directors and the roles each member plays within the company’s key board committees. The board is led by Chairman and executive director Liu Jianzhong, alongside ex...
China Oilfield Services Calls July 2026 EGM to Approve Board Changes
Jul 8, 2026
China Oilfield Services has called its first extraordinary general meeting of 2026 for 29 July in Hebei Province to vote on changes to its board composition. Shareholders will consider appointing Liu Jianzhong and Shang Jie as executive directors ...
China Oilfield Services Unveils Leadership Shake-Up and Board Changes
Jun 30, 2026
China Oilfield Services Limited announced significant leadership changes, including the resignation of Chairman, executive director and Chief Executive Officer Zhao Shunqiang due to an adjustment in his work arrangements. Zhao’s roles as cha...
China Oilfield Services Updates Final 2025 Dividend and Tax Arrangements
May 22, 2026
China Oilfield Services Limited has updated its final dividend declaration for the financial year ended 31 December 2025, confirming a payout of RMB 0.2825 per share, equivalent to HKD 0.323492 per share based on an exchange rate of RMB 1 to HKD 1...
China Oilfield Services Shareholders Approve 2025 Results and Dividend at AGM
May 22, 2026
China Oilfield Services Limited held its 2025 annual general meeting and a class meeting for H shareholders on 22 May 2026 in Hebei Province, with the sessions chaired by Chairman Zhao Shunqiang and attended by most board members and independent d...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.