The company's 2025Q1 performance growth far exceeded expectations
The company's revenue in Q1 2025 reached 10.8 billion yuan, +6.4% year on year; net profit to mother was 0.887 billion yuan, +39.6% year over year, which clearly exceeded our expectations. We believe that the reasons for exceeding expectations may be 1) profit elasticity due to a sharp increase in the number of days of operation and usage of drilling platforms, 2) a 70 million reduction in interest expenses due to improved debt structures, and 3) a certain decline in income tax rates.
The operating volume of the drilling platform sector exceeded expectations
The number of working days for 2025Q1 was 4889, +11.4%; of these, semi-submersible drilling platforms were +9.1% year-on-year; jack-up platforms were +12.1% year-on-year.
The utilization rates of the 2025Q1 jack-up and semi-submersible drilling platforms were 91.9% and 90.4% respectively, +7.6 pct and +4.2 pct respectively over the same period. It mainly benefits from the full domestic workload and close connections, as well as the workload contribution of the new contract for an overseas Norwegian semi-submersible platform.
Oilfield technical services revenue continued to grow in Q1
Q1 The scale of the technology service market remains stable, continue to advance research on key core technologies, promote the systematic application of scientific research results to speed up efficiency, and at the same time do a good job in intelligent manufacturing of independent technology products, which is poised for the long-term stable development of the sector. Q1 The volume of the company's main business line of oilfield technical services continued to grow year-on-year, and the overall revenue scale maintained an upward trend.
Profit forecast and investment rating: Maintain the forecast of 2025-2027 net profit of 4.03/4.24/4.43 billion yuan. A shares correspond to PE 16/15/14 times PE, maintaining a “buy” rating.
Risk warning: the risk that CNOOC's capital expenditure in 2025 will fall short of expectations; the risk that the sharp drop in international oil prices will affect the willingness of oil companies to spend capital; overseas order expansion or operation progress falls short of expectations.
