\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 808 China Oilfield Services Limited(601808) )
China Oilfield Services Limited(601808) announcement 2021 annual report: in 2021, the company achieved an operating revenue of 29.2 billion yuan, a year-on-year increase of + 0.8%; Affected by the impairment loss of 2 billion yuan, the net profit attributable to the parent company was 313 million yuan.
Industry environment: the recovery of international oil and gas capital expenditure accelerates in 2022
According to the company’s announcement, citing IHS Markit data, the global upstream exploration and development capital expenditure in 2021 was US $336.2 billion, an increase of 8.80% year-on-year. It is estimated that the total global upstream exploration and development capital expenditure in 2022 will increase by 24% compared with that in 2021 (according to the company’s strategic guidelines). As the oil price remains relatively high, the cautious attitude of global upstream investment has eased, and the signing of drilling platform has increased.
The drilling service rate is expected to rise significantly in 2021, which is expected to be lower than that in 2022
By the end of 2021, 57 drilling platforms (including 43 jack up drilling platforms and 14 semi submersible drilling platforms) had been operated and managed, which was the same as that of the same period last year. In 2021, the utilization rate of the company’s jack up drilling platform was 76% and 59% respectively. Looking forward to 2022, according to the company’s strategic guidelines, the press conference estimates that the utilization rates of self-produced and semi submersible drilling platforms are 87% and 76% respectively.
Technical service sector: high-end and self-determination continue to be promoted
In 2021, the company’s oilfield technical service business realized an operating revenue of 15.1 billion yuan, a year-on-year increase of + 13.2%; The gross profit margin remained at a good level of 29%. Two scientific and technological achievements, including rotary steering and high-temperature logging, were selected into the recommended catalogue of scientific and technological innovation achievements of central enterprises (2020 Edition). The self-developed “Xuanji” rotary steering and logging while drilling system has the full-scale field operation ability, has made a major breakthrough in the success rate of entering the well, and has successfully entered the overseas market to form a continuous operation ability.
Profit forecast and investment rating: maintain the expected net profit attributable to the parent company of 3.7/5.3 billion in 2022 / 2023, and increase the forecast of net profit attributable to the parent company of 5.9 billion in 2024. The current share price corresponds to 18 / 13 / 11 times of PE valuation respectively, maintaining the “buy” rating.
Risk warning: the risk that CNOOC’s capital expenditure in 2022 is less than expected; There is still a surplus of international offshore drilling platforms, which leads to the risk that the daily operation cost is difficult to rise; The risk that the sharp drop in international oil prices will affect the willingness of oil companies to spend capital; Carbon neutralization is a radical risk that affects the willingness of oil companies to spend capital.
