China Oilfield Services Limited (02883) dropped over 4% following its earnings announcement. As of press time, the stock fell 4.02% to HK$7.4, with trading volume reaching HK$118 million.

On the news front, China Oilfield Services Limited released its interim results, reporting revenue of RMB 23.32 billion for the period, up 3.51% year-over-year. Profit attributable to owners reached RMB 1.964 billion, an increase of 23.33% year-over-year, with basic earnings per share of 41.16 cents.

CICC issued a research report noting that oil technical services revenue declined 3.5% year-over-year to RMB 12.38 billion, while the operating profit margin remained essentially flat at 17%. The parent company's oil technical services order volume may have decreased slightly year-over-year.

The firm highlighted that the company's drilling operating profit showed significant recovery in the first half compared to 2024, with operating profit margin increasing 4 percentage points year-over-year to 9%. Operating days continued to recover in the second quarter, rising 11% year-over-year to 5,017 days, with semi-submersible utilization days increasing 12% year-over-year and 2% quarter-over-quarter.

The firm believes that the impact of Middle East drilling vessel suspension has largely subsided for the period from the second half of 2024 to the first half of 2025, and the company's contracts in Southeast Asia and Brazil are expected to generate higher day rates and strong profits.