Upload
others
View
17
Download
0
Embed Size (px)
Citation preview
Aug 2018
Disclaimer
2
The information contained in this presentation is intended solely for your personal
reference. In addition, such information contains projections and forward-looking
statements that reflect the Company's current views with respect to future events
and financial performance. These views are based on assumptions subject to
various risks. No assurance can be given that future events will occur, that
projections will be achieved, or that the Company's assumptions are correct.
Actual results may differ materially from those projected. Past track record
cannot be used as guidance for future performances.
Results Overview
Company Outlook
International crude oil prices rebounded.
EIA: Brent will be around US$70/barrel; WTI will be around US$64/barrel in 2018.
The oilfield-services sector went back to an adjustment phase of normal growth from 2017.
2017年全球上游油气资本开支显示复苏迹象2017年全球上游油气资本开支显示复苏迹象
4
Crude Oil Price Rebounded 预期全球勘探开发资本支出总量有所恢复Oilfield Services Market Increased
Unit:USD Billion
236 252
0
50
100
150
200
250
300
350
400
450
500
Global Oilfield Services
Market Environment
Source: IHS, market data as of 8 July 2018 Source: Spears, market data as of 1 April 2018
Utilization rate of rig modestly recovered in 2018.
Still face oversupply and downside price pressure. The recovery of international oilfield services
companies outperformed the international drilling companies.
2017年全球上游油气资本开支显示复苏迹象2017年全球上游油气资本开支显示复苏迹象
5
Utilization Rates of Global Drilling Rigs Day Rates of Global Drilling Rigs
Market Environment
Source: IHS Report, market data as of June 2018 Source: Clarksons
Semi-sub: $’000/day Jack-up: $’000/day
RMB 1H2018 Q2,2018 Q1,2018
Operating Revenue (million) 8,127.9 4,705.2 3,422.7
Operating Profit (million) -239.8 131.9 -371.7
Net Profit (million) -363.3 280.6 -643.9
Cash available²: RMB 9.75billion
Debt-to-capital ratio at 45.7%; net debt-to-equity at 68.8%
RMB 1H2018 2017
Total Assets (million) 72,768.1 73,935.6
Total Liabilities (million) 38,665.8 39,253.6
Shareholders' Equity (million) 34,102.4 34,682.1
1. All above financial data are from the unaudited financial report prepared by the Company under HKFRS.2. Available cash includes cash equivalents and available-for-sale financial assets.
Remark: Financial data as of June 30, 2018
Financial Performance 1
6
7
Revenue Breakdown
Revenue Contribution in terms of Segment and Geographic
1H2017
58%
1H2018
65%
1H2017
33%
1H2018
63%
1H2017
0
1H2018
16,091
1H2017
16,577
1H2018
15,836
1H2017
13,406
1H2018
14,900
Semi-sub 2D 3DOperating days(day)
Remark: Financial data as of June 30, 2018
Domestic
76%
Overseas
24%
Unit: RMB million
Utilization RatesMarine Support Services
(Self-owned Vessels)Acquisition and
Surveying Services Technology Market
Share Expanded
Jack-up
Slurry and Cementing~100%
Workover~100%
Well Completion~60%
Production e6xpansion~85%
LWD~60%
Grew by 260 m
Grew by 760m
(utiliz
atio
n ra
te o
f drillin
g rig
s)
Acquis
ition (k
m)
Acquis
ition (k
m2)
Equipment
58%
Technology
42%
Grew by 930m
Grew by 90m
美洲12%
Technology
Equipment
• Middle East: 2 jack-up rigs entered
• Europe: 2 semi-sub rigs reactivated
• Far East: 1 semi-sub rig entered
• Southeast Asia: 1 jack-up rig +1 semi-sub rig
entered; newly added 3D operation in Bangladesh
and Myanmar
• Africa: 1 jack-up rig entered; newly added 3D
operation in Gabon
• Middle East: Newly IPM services
• Southeast Asia: Several new services projects in
LWD, directional drilling, production optimization,
cementing, drilling & completion fluids
• North America: Sales of slotted liners increased
8
New Breakthroughs
Enhanced Market Expansion Good Reputations
Acquired 50 contracts from overseas market: 2 new
markets, 5 new clients
Traditional offshore operation volume increased
Enhanced onshore service + new business
HYSY937 garnered “SAKA Drilling Operation
Safe Production 365 Days” award in Indonesia
Received “Best Supplier Performance” award
from HCML, an Indonesian company
9
2018 Selected Key Overseas Markets
Europe
The Middle East
Equipment Segment
COSL Promoter executed Statoil drilling contract
COSL Pioneer executed Nexen drilling contract
COSL Innovator executed Lundin drilling contract
Technology Segment
Actively follows market opportunities
Equipment Segment
COSL Force completed drilling contract
COSL Strike, COSL Gift acquired long-term drilling contract
Technology Segment
Executed integrated well services contract in Iraq
Executed logging, workover and cementing service
contracts for multiple customers
Commercialization of R&D Results
1H2018
1201
2017
1150
2016
1076
2015
943
2014
763
2013
621
2012
463
10
(To
tal n
um
ber o
f pate
nts a
cqu
ired
)
Number of Patents Continued to Increase Unit: patent
51 new authorized patents. Total number of authorized patents hits 1201
First 15 scientific research projects delivered stable performance, 9 of which commercialized with a total
value of RMB1.02 billion
Speeded-up R&D and commercialization through the laboratory in North America
Demands for environmental protection, HTHP boosted related technology services
11
Technological Achievements
Offshore: SK's Integrated Services Project
Self-owned technology + equipment
Efficient management and operation:
• Completed operation in just 22 days
• None injury, environment pollution and loss of property
Integrated service for the 4th well in east of South China
Sea
Capability of technological service under deep-water
Onshore: Integrated Services in Missan Oilfield
Full-range services: demonstrated overall technological
strengths
High efficient: average operation days is 80 day, much
lower than those of such region
High Tech: 2 non-standard horizontal wells, strata
movement of salt gypsum layer and cementing in salt
gypsum layer
12
QHSE and Charity
Premium QHSE Record Helps to Achieve Operation Target
0.45
0.220.27 0.29 0.32 0.25 0.26 0.23 0.2 0.19 0.24
0.18 0.08 0.07 0.1 0.05 0.08
-0.1
0.1
0.3
0.5
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H2018
OSHA Index
Refined and classified management risks with 0.08
OSHA incidence rate
Favorable safety culture
Actively engaged in charity work
According to OSHA, coefficient 1 is equivalent to one accident per 200,000 man-hours
January 2018,COSL won“Top 100 International Energy Enterprise Crystal” awards
January 2018,COSL won "Shanghai-Hong Kong Stock Connect Best Investment Value Award" by “China Financial Market”
April 2018,COSL won“Best New Media Operation”in“Tianma Award”by Securities Times
Constituent stock of Heng Sheng
(China A) Corporate Sustainability
Index; and constituent stock of Heng
Sheng Corporate Sustainability
Benchmark Index
13
May 2018,COSL won“Certificate of Excellence in Investor Relations”from HKIRA
Awards and Recognitions
Results Overview
Company Outlook
International Market Demands
Global upstream E&P spending increased by 12% over 2017
Onshore E&P spending increased by 16%,offshore E&P spending slightly increased by 3%
E&P spending of global offshore deep-water projects increased for the first time since 2014
2017 2018
Global upstream E&P Capex
2017 2018
Onshore E&P Capex
2017 2018
Offshore E&P Capex
15
Source: IHS
16
Domestic Market Demands
To achieve double-50% goal through market opportunities and second startup
CNOOC will enhance E&P investment
Bohai Bay: Operation opportunities for stable production and reservoir optimization
Oil price rise will drive E&P activities from the medium to small-sized oil&gas companies
Onshore sector: Unconventional business in Xinjiang etc
South China Sea: deep-water E&P
Environment protection: Wind power construction, EPS cutting re-injection business
High foreign oil
dependency rate
Operation activities
will increase
Wire-line
Logging
Directional
Drilling
17
Operation Guarantee Under New Trend
Marine Support
Well Services
DrillingGeophysical and
Surveying Services
Ranked 3rd and 6th in cementing and well loggingRanked 6th and 8th in LWD and drilling fluids
Water depth : 5-3000m Drilling depth: 5000-12000m
Ranked 3rdMember of International Association of Drilling Contractors (IADC)
Ranked 5th in the worldLeading player in offshore China
Ranked 4thMember of International Association of Geophysical Contractors (IAGC)
Experience of undertaking challenging operation and breakthroughs in
self-developed core technology products since 1985.
Design and onsite construction for all types of projects
Real-time strata evaluation while drilling
Experienced and comprehensive self-developed equipment and
technology system since 1982.
Comprehensive wire-line logging solution
Data processing and information explanation service
Accelerated Technology Development
1Drilog® andWelleader®
System
Achievement: 67 systems in total, 105 well operations; 81336 meters in length and
operation success rate of 85%
Market: revenue of nearly RMB80 million, saved costs of nearly RMB600 million
2
High Temperature Resistant Cementing Slurry Series (COCEM)
Achievement: completed researches on core product formula and production procedureswith 6 products and 3 systems
Market:
• 15 well operations with production value of RMB80 million
• COCEM' s High Temperature Resistant Cementing Slurry helped win operation contract
3
Well Completion 2.0 Wellbore Tool & Premium Slotted Liners
Achievement: • 55 types of well completion tools for wellbore, production value of RMB90.42 million, and
tender success rate of 73% in domestic market• 8 metal slotted liners and production lines, sales of RMB90.8 million, share in China's slotted
liners market increased to 50% and above
Market:
• 218 well operations with well completion 2.0 tool generated production value of RMB70 million
• 12 new contracts with an aggregate value of RMB111 million; acquired Nexen's 30000m slotted liner order for 66 well operations
18
The Middle East
Southeast AsiaThe
Americas
Africa
The Far East
• Closely follow CNOOC's projects
• Mainly expand high-end drilling and
geophysical and surveying business
Europe
Note:COSL has acquired overseas projects from CNOOC
19
• Canadian Nexen logging integrated contract(2017~2019)
• COSL Promoter executed Statoil drilling contract
• COSL Pioneer executed Nexen drilling contract
• COSL Innovator executed Lundin drilling contract
• Horizontal well land drilling services contract(2019~)• Integration and stimulation projects(2018~)• COSL Craft and COSL Superior executed drilling contract• COSL Strike and COSL Gift acquired long-term drilling contract
• Acquired drilling contract(2019~)
• NH9 acquired drilling contract(2018~)
• HTHP slurry contract(2019~)
• HYSY937 acquired drilling contract(2018~)
• TCP、DST and logging integrated contract(2019~)
Contract Status in the Near Future
Rig Operation Status(Up to 14 Aug)
Remark:2 Jack-ups(HYSY936/Hunter)and 1 semi-sub( Prospector )are in bidding or negotiation processes.. Will lease 2 Jack-ups according to the needs of operation. Jack-ups Semi-sub
Operation Drilling Rig
2018
Q1 Q2 Q3 Q4location
Do
mestic
16 Jack-ups
1 Jack-up(Kaixuan)
1 Jack-up(HYSY943)
1 Jack-up(BH7)
1 Jack-up(HYSY941)
3 Semi-subs(NH2/NH5/NH7)
1 Semi-sub(NH6)
1 Semi-sub(HYSY981)
Inte
rnatio
nal
3 Jack-ups(Superior/Craft/HYSY937)
1 Jack-up(Gift)
1 Jack-up(Seeker)
1 Jack-up(Confidence)
2 Jack-ups(Strike/Boss)
1 Jack-up(Force)
1 Jack-up(Power)
1 Semi-sub(Promoter)
1 Semi-sub(Pioneer)
1 Semi-sub(Innovator)
1 Semi-sub(NH8)
1 Semi-sub(NH9)
1 Semi-sub(HYSY982)
Contracts in the year
Contracts in the year
Contracts in the year
Contracts in the year
20
Sufficient cash flows
Low financing costs
Sufficient credit facilities(Totally RMB42billion with 84% unused by 1H2018)
Prudent capital expenditure
Unobstructed financing channels with better ratings
CAPEX
2018E2015
7.5bn
2016
3.5~4.5bn
2017
2.5bn 2.5bn
Interest and Principal Payment
20212016 2017 2018 2019 2020
Further on Comparative Advantages
Unit: RMB
Note: Exclude long-term prepaid expenses
21
Recap
Strong capability in equipment
operation and management
control
Accelerating technological
commercialization and serialization
will raise the proportion of
technology segment
Healthy financial condition and
low financial costs ensure a
more flexible business model
Retained contracts firmed
sustainable development
International gas and oil companies gradually increase E&P spending
Active gas and oil E&P activities in domestic market will boost the operation volume of oilfield services
22
COSL IR(WeChat Official Account)
New Breakthrough in Iraq(English Version)
New Breakthrough in Iraq(Chinese Version)