Citigroup has released a research report reiterating a "Buy" rating on CHINA OILFIELD (02883) with a target price of HK$11.6. This target implies a projected 2026 price-to-book ratio of 1 times, which is one standard deviation above the average. The company reported a first-quarter net profit of 856 million yuan, representing a 4% year-on-year decline but a 35% increase quarter-on-quarter. Excluding approximately 300 million yuan in foreign exchange losses, core profit was 1.16 billion yuan, up 34% year-on-year but down 6% sequentially. The overall quarterly results fell short of expectations. Management attributed the significant forex loss primarily to currency differences arising from accounting treatments between the parent company and its overseas subsidiaries, rather than operational issues. The company is actively considering measures such as adjusting its functional currency or implementing debt-to-equity swaps to mitigate future impacts. The report indicated that in the drilling business, utilization rates for jack-up rigs and semi-submersible platforms were 91% and 97%, respectively. Revenue and EBIT for the oilfield technology services segment increased by 5% and 18% year-on-year in the first quarter, primarily driven by rapid growth in overseas integrated services.