China Oilfield Services : COSL Announces Interim Results for 2015 Explored Markets, Controlled Costs and...

China Oilfield Services Limited("COSL" or the "Group") announced its unaudited results for the six months ended 30 June 2015 today .

During the first half of 2015, international crude oil prices continued to trend down while global oil and gas exploration and development investments declined substantially. The oilfield services sector was in a state of overcapacity with service rates lowered by the intensifying competition in the market. Faced with changes in the market , the Group handled proactively, endeavoring to explore markets and control ling costs tight ly ,thereby achieved smooth progresses in production an d operations, safety management, and technology research and development.

Revenue for the six months ended 30 June 2015 was RMB12,089.4 million. Operating profit for the period was RMB1,260.9 million. Net profit was RMB921.9 million. Profit attributable to shareholders of the Company was RMB894.7 million. Basic earnings per share for the six-month period were RMB0.19.

In the drilling segment , by the end of June 2015 the Group operated and managed 44 drilling rigs (including 33 jack-up drilling rigs and 11 semi-submersible drilling rigs), 2 accommodation rigs and 5 module rigs.

During the first half of 2015 the Group's drilling rigs achieved 6,245 operating days, down 348 days when compared with that of the same period last year . Due to more days spent on standby, the calendarday utilization rate of the drilling rigs declined to 80.0%. During the period the Group's large-scale equipment achieved outstanding performance with HYSY936 and 3 model rigs received endorsements from P E M EX . HYSY981 made its debut in the international markets and successfully completed the operation. HYSY937 finished smoothly drilling for its first well in the international markets. COSLProspector successfully started its first drilling in South China Sea.

In the well service s the Group continued to invest in research and development to help oilcompanies raise recovery rates and boost outputs for their wells within fixed budgets and help to meet operation requirements for high-temperature high-pressure wells .The Group's self-developed EZFLOW drill -in fluid was successfully applied in Bohai Sea with significant output results . The Group's self-developed r otary s teer ables ystem Welleader® and l ogging w hile d rilling s ystem Drilog® completed operations for 5 wells, which was the first small-scale application onoffshore; the first time the Group completed the complex three dimensional horizontal well landing operations, and received the Job Sheet . These operations made COSL the first companyin Chin a and the four th in the world that owns these two technologies , whichwill help the Group enhance its competitiveness in the international high- spec oilfield service market and reduc e service costs in the future.

In themarine support services and geophysical and survey ingservices segments , the Group arranged its resources proactively and persistently explored domestic and international markets. The marine support services segment adjusted its equipment structure to accommodate deep-water operation requirements. This segment operation volume remained stable. The Group's own support vessel fleet achieved a calendar-day utilization rate of 90.5%. The geophysical and survey ing segment accelerated breakthroughs in technology and the self-developed HQI-NAVIintegrated n avigation s ystem for towed streamer completed its first trial production operation.

Meanwhile, the Group successfully completed a US$1 billion Euro medium term note issuance in July, demonstrating its premium creditworthiness and f inancing capability.

Mr. Li Yong, CEO and President of the Group, said: "During the first half of the year, the Group proactively handled changes and challenges in the market . We improved our management and cost-efficiency to ensure operation safety, quality and efficiency. We proactively initiated necessary tasks. Looking ahead into the second half of the year, the Group will continue to strengthen its fundamental management to beef up our development potential during this period of transformation for the industry. Meanwhile , the Group prepares itself for the possible prolonged weaknesses in oil prices . The Group will enact more reasonable plans in resources allocation between the domestic and overseas markets , seeking to expand o u r international market share while reinforcing our share in the existing market .The Group is adher ing to promote our integrated service model. We endeavor to strengthen our cost management and the capital management to enhance the Group's capability in weathering risks in the market, thereby achieving sustainable development."