Post on 19-May-2022
2010年3月
China Oilfield Services Limited
Annual Results 2010
March 2011
22
免责声明Disclaimer
The information contained in this presentation material is for your reference only. In
addition, these information include predictive and forward-looking representations, which reflect
the Company’s current views regarding future events and financial performances.
These views are based on information which the Company believes to be reliable, but the
Company does not represent that these information are accurate or complete, and therefore these
information shall not be relied upon. Assumptions which these views are based on are subject to
various risks. We could not guarantee that future events would certainly happen, predictions
would certainly realize and the Company’s assumptions would certainly be accurate. The actual
outcome may be substantially different from these predictions (if any), and past performances are
not indicative of future performances.
3
1
2 Business Outlook
Results Review
4
Adapt to changes in the market and clarify the development direction
Stable safety control
OSHA score remained at 0.20, a record low level
Operating results maintained steady growth
Revenue reached RMB17.56 billion, up 4.5% y-o-y1
Operating profit reached RMB5.20 billion, up 16.4% y-o-y
Effective cost control
Operating profit margin increased to 29.6%
Finance costs were RMB510 million, down RMB310 million or 37.8% y-o-y
Expand domestic and overseas markets
Maintain the leading position in domestic market
Continue to expand into overseas markets with a revenue contribution of RMB4.31 billion,
accounting for 24.6% of total revenue
Revenue from IPM increased by 30.7% to RMB1.32 billion
Results Highlights
_______________________________________1 Excluding the impact of writing back the deferred income in 2009, revenue for the year 2010 should have increased by 4.5% y-o-y
RMB (million) 2010 2009 Change
Revenue 17,561.0 17,878.71 4.5%2
Operating profit 5,200.1 4,468.1 16.4%
Operating profit margin 29.6% 25.0% 4.6pp
Net profit 4,128.0 3,135.3 31.7%
EPS (RMB cents) 91.84 69.75 31.7%
12/31/2010 12/31/2009 Change
Debt to assets ratio 59.8% 63.4% 3.6pp
Net Debt to Equity ratio 91.9% 120.5% 28.6pp
RMB (million) 12/31/2010 12/31/2009 Change
Total assets 63,497.4 60,776.5 4.5%
Total liabilities 37,907.5 38,470.9 1.5%
Equity 25,589.9 22,305.6 14.7%
Cash and cash equivalents 5,847.2 3,214.6 81.9%
5
Financial Highlights
1. Revenue declined by 1.8% y-o-y due to the fact that an operation contract for a semi-submersible rig which was still under construction
had been cancelled in 2009. The accrued RMB1,073.1 million revenue for this rig had been booked in 2009.
2. Excluding the impact of writing back the deferred income, revenue for 2010 increased by 4.5% or RMB755.4 million y-o-y
1.8%
6
Drilling
Operate 29 drilling rigs, 4 module rigs, 6 land rigs and 2
accommodation rigs
Utilization rates remained high
Available-day utilization rate reached 99.5%
Calendar-day utilization rate was 94.6%
New equipment drove revenue growth
COSL936 and COSL937 commenced operation and
added 657 working days
Service fees remained stable
YOY average day rate for jack-ups down by 5.8%
YOY average day rate for semi-submersibles up 3.2%
YOY average day rate for accom rigs up 12.8%
Segment revenue : RMB9.33 billion, accounting for 53% of
total revenue.
Segment operating profit : RMB3.51 billion.
Calendar-day Utilization Rate and Day Rate
0%
20%
40%
60%
80%
100%
0
5
10
15
20
25
02 03 04 05 06 07 08 09 10
Jack-u
ps
Se
mi-s
ub
me
rsib
le
USD 0,000/Day
0%
20%
40%
60%
80%
100%
0
4
8
12
02 03 04 05 06 07 08 09 10
日费率 日历天使用率Day rate Calendar-day utilization rate
7
Well Services
Work volumes were enhanced
Expanded into new markets
Newly launched Environmental Protection Services
experienced gradual increases in efficiency
Awarded re-fracturing contracts of offshore gas
well
Continue to improve the R&D capability
Obtained 269 effective patents
R&D results have been used in operation
ERCT 1 started full commercial operation with 100%
success rate
Segment revenue reached RMB4.33 billion, accounting
for 25% of total revenue
Operating profit stood at RMB814 million
No. of Patents Obtained
Unit: Item
5982
118
162
269
0
50
100
150
200
250
300
2006 2007 2008 2009 2010
As at Dec 2010
1. Enhanced Reservoir Characteristic Testers
8
MS&T
Owns 75 working vessels, 3 oil tankers and 5
chemical carriers
Calendar-day utilization rate: 94.7%
Deployed external resources to maintain market
share
Chartered a total 21 utility vessels during the
year, and 9 were still on charter as at the end of
2010
Chemical carriers started backhaul freight
shipping service with shipping volume increased
by 62% y-o-y
Segment revenue was RMB2.35
billion, accounting for 13% of the total revenue.
Segment operating profit stood at RMB542 million
80%
85%
90%
95%
100%
0
20
40
60
80
100
02 03 04 05 06 07 08 09 10
船舶数量 日历天使用率
Remark: writing off of 6 utility vessels during the year
Calendar-day utilization rateNo. of
Vessels
9
Geophysical
Operated 7 seismic vessels, 4 survey vessels, and 1 OBC,
totaling 31 streamers
3D data collection volume enhanced
COSL718 was awarded a 5000 km2 3D data collection
contract in South Sea
Explored overseas markets for the winter time
The first self-developed domestic high-accuracy
offshore seismic data collection equipment in China
was applied into production
Newly launched OBC business enhanced operation
capacity
Successfully completed deep-water operation in LW
Segment revenue :RMB1.56 billion, accounting for 9% of
the total revenue
Operating profit was RMB340 million
0
4,000
8,000
12,000
16,000
三维采集(平方公里) 三维处理(平方公里)
2009年 2010年
3D Geophysical
25.1%
0.4%
km2
3D Seismic Data collection (km2) 3D Seismic Data processing (km2)
2009 2010
10
Integration Entered into a New Phase
Secured service contracts for the 8 jack-ups
Construction of 3 semi-submersible rigs achieved solid progress
• Pioneer: delivered on 26 Oct 2010, was awarded a contract by
Statoil for up to 5 years. Expected to commence operation in
2Q 2011
• Innovator and Promoter: expected to be delivered in 4Q 2011
and 1Q 2012 respectively
Rival was awarded an AOC certificate, the contract lasts up to 20
months, operation to be commenced in August 2011
Effectively implemented operation management and stringent cost
control
Integration of corporate cultures started to take effect
11
Fulfilling Social Responsibilities
Continued to improve QHSE and SMS systems and completed the 5-year DOC
review and DNV annual audits
Safety production remained stable
• Further intensified safety checks
• Hosted many emergency drills and improved the emergency solutions
• Safety record remained at a low level, OSHA score: 0.20
“Clean, green, low-carbon and recycle economy” philosophy
Cares for employees and their health
• 99% of the employees working onshore received body checks and 100% of
the front-line employees are holders of proofs of health
Proactively participated in social welfare such as community
activities, disaster relief efforts and donation
12
1 Results Review
2 Business Outlook
13
International oil prices continue to increase
Institutions estimated growth in demand for oil to be at 1.5%, mainly coming from emerging countries and regions at a growth of 3.2%
OPEC idle capacity and output increases from non-OPEC countries will be able to satisfy the growth in oil demand in the next two years
In short term, the crises in the Middle East and North Africa may further push up the oil price
GDP
growth2009 2010 2011E 2012E
Global -0.6% 5.0% 4.4% 4.5%
Developed
Countries-3.2% 3.0% 2.5% 2.5%
Developing
Countries2.5% 7.1% 6.5% 6.5%
Global economy started an uneven recovery
Developed countries experience less-
severed-than-expected slowdowns, yet
unemployment rates remain relatively high
Developing countries are economically
active, yet escalating inflationary pressure
may affect their fiscal and monetary
policies
Potential imbalance has set to be
introduced to the global economy from as
different places are in different paces of
recovery
Source: IMF forecasts
Global Macro Economy and International Oil Price
Source: Bloomberg
0
30
60
90
120
150
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
WTI油价
Avg price in 2011:
USD90-100/barrel
WTI
14
CAPEX of Major Clients
According to Barclays Capital, the total expenditure on global oil and gas
exploration in 2011 will be US$489.5 billion, up 10.8% y-o-y. The expenditure in
Asia will increase by 9% y-o-y
Major COSL clients are maintaining increasing CAPEXs in 2011, of
which, CNOOC’s CAPEX will increase by 55% y-o-y in 2011
CNOOC plans to construct 2-3 deep-water wells in 2011 and work volume for
2D and 3D seismic explorations will be 19,967 km and 17,129 km2 respectively
Source: Barclays Capital
0
5
10
15
20
25
2010E 2011E
US$ billion
Scale of Global Oilfield Services Market Rebounds
-20%
0%
20%
40%
0
50
100
150
200
250
300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E
Global Oilfield Services Market Scale Growth RateUnit: US$ billion
Source: Spears & Associates Oilfield Market Report
15
The rebound in oil prices in 2010 drove a recovery in demand for global oilfield services,
of which
Offshore drilling market saw improvement
Geophysical market stopped its decline and expects to see significant growth in 2011
Deep water exploration activities become active with its growing importance
16
Supply of drilling rigs still outstrip demand despite oil prices stay high, yet utilization
rate of drilling rigs remain high with day rates remain stable
Demand for high-end jack-ups increases recently and differentiation in large-scale
equipment portfolios brings about differentiation in service prices
Under
Contract
(Left Axis)
Total No. of Rigs
(Left Axis)
Utilization Rate of Drilling rigs Rigs Price Index and Oil Prices
0
200
400
600
800
1000
1200
Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11
30
50
70
90
110
130
150
日费率指数(左轴) WTI价格(右轴) 美元/桶
Slow Recovery of Global Drilling Market
Note: Day rate index is calculated by adding weighted day rates in major drilling markets. Year 1994=100
Source: Upstream, ODS-Petrodata, Bloomberg
Day Rate Index (Left
Axis)
WTI Price (Right
Axis)USD/Barrel
Source: ODS-Petrodata
Under
Operation
(Left Axis)
Utilization Rate
(Right Axis)
17
Technology-driven Cost Leadership Integration Internationalization
Reinforce advantages, gradually shift focus to high-end equipment,
and speed up internationalization process Drilling
Well Services
MS & T
Geophysical
Enhance R&D capability, increase segmental contribution, upgrade technological strength, increase proportion of self-developed products to improve competitiveness
Optimize fleet structure, move to high-end market, and secure share in
the domestic market
Focus on technological innovation, upgrade technological strength, optimize
equipment portfolio, and seize opportunities to explore new businesses
Well-defined Development Blueprint
Structural adjustment; Be competitive & professional; Focus on quality growth
18
Equipment Portfolio Optimization
No. of vessels No of vessels
1.Equipment count for drilling and geophysical segments as at 2012, vessels under construction until 20132. 981 was invested and owned by CNOOC and operated by COSL
1艘
250300
375400
1500
2500
10000
11 rigs 6 rigs 5 rigs 5 rigs 3 rigs 3 rigs 1 rig
• Realize phased equipment structure optimization and upgrade
1.Moving from shallow to deep waters
2.Lower overall age of drilling rig fleet, with over 50% of the jack-ups aged less than 5 years
3.Increase high-powered vessels in MS&T fleet and realize diversity
4.Optimize geophysical fleet and improve efficiency
• Newly-built high-end equipment helped participate in international competition
Operation
Depth (ft) ≤250 ft 300 ft 375 ft 400 ft ≤1500 ft 10,000 ft2500 ft
Geophysical Vessels Survey Vessels
19
CAPEX and new equipment
1 Invested & constructed by CNOOC and operated & managed by COSL
2 Excluding the AWILCO acquisition
Since listing , CAPEX amounted to RMB32.78 bn1
Actual CAPEX in 2010 : RMB5.48 billion
CAPEX in 2011: around RMB5 billion
CAPEX breakdown since listing
•Two 200-feet drilling rigs(921
& 922 ) to commerce operation
•Two 200-feet drilling (923 &
924) to be delivered for
operation
•COSLPioneer to
commence operation
• COSLInnovator to be delivered
• Ultra deep-water SS 9812
to be delivered
2011 Regular waters Deep-water
•Vessels introducing
acidification and crushing
delivered for operation
•Deep water related
well services
• 2 deep water ATHS vessels
• Offshore Bottom Cable
•12-streamer seismic
vessel
• deep-water survey
vessel
2012 Regular water Deep-water
•COSLInnovator to
commence operation
•COSLPromoter to be
delivered for operation
•Equipment to be delivered
in 2011 will bring more
operation days in 2012
Drilling
Well
Services
MS&T
Geophy
-sical
Drilling
Geophysical MS&T
Drilling*
12-streamer seismic vessel
deep-water survey vessel
Deep-water ATHS vessels
Deep-water equipment portfolio
_____________________
*The three rigs are (from left) 981, COSLPioneer and COSLInnovator.
21
COSL’s deep-water operations in China
come to live following deliveries of the
ultra-deep-water semis 981, a deep-
water survey vessels and 2 utility
vessels.
At the moment, three deep water natural
gas fields had been verified in China
waters, including Liwan3-1, Liuhua 34-2
and Liuhua 29-1
CNOOC plans to explore 2 to 3 deep-
water wells in 2011
Deep-water Operations
Liuhua29-1
Liwan3-1
Liuhua34-2
Source:: CNOOC
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Output enhancement met new requirements for extraction of thickened oil in China waters, providing
huge potential for COSL well services
Respond to clients’ demand and apply certain oilfield technologies into new areas
Engage in acidification, pumping, water shutoff, CO2 expulsion operations
Increasing application of integrated acidification and CO2 expulsion techniques
Enhance reservoir recovery through acidification and related services
Achieved revenues of more than RMB100 million a year
Increasing use of injection techniques effectively enhanced output
Wide application of steam injection on location in oilfields
Technical innovation to apply land fracturing techniques in offshore exploration
Fracturing and related operations to drive output enhancement businesses
Low permeability oil reservoir exploration by fracturing techniques
New Business, New Expansion, New Growth Drivers
22
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Thank you!