ANTON OILFIELD SERVICES (03337) announced its first-quarter performance, noting significant volatility in the global oil and gas markets due to geopolitical tensions and shifts in supply and demand. Military conflicts involving the US, Israel, and Iran heightened tensions across the Middle East, disrupting key shipping routes and driving a sharp increase in international oil prices. Concurrently, natural gas demand in emerging Asian markets showed robust growth. The instability in the Middle East has further intensified global focus on energy security and the transition to new energy sources.
Against this backdrop, the Group adhered to its strategic positioning of continuous upgrading and sustainable development. On one hand, it closely monitored situational changes, prioritized employee safety, strengthened personnel safety controls, adjusted frontline staffing based on project needs, and enhanced cost management to ensure a stable transition during the period of disruption. On the other hand, it swiftly established a specialized team to actively explore new business opportunities arising from the Middle East situation, including capacity rebuilding in GCC countries post-conflict, opportunities from the resumption and production increase of oilfields in Iraq, and new market prospects in North Africa, thereby identifying opportunities for growth amidst change.
In the first quarter, the Group secured new orders totaling RMB 1.3874 billion, representing a 20.3% decrease compared to the same period last year. Specifically, new orders from the Iraqi market amounted to approximately RMB 611.2 million, down 12.7% year-on-year. New orders from other overseas markets were about RMB 47.9 million, a decline of 85.3%. In contrast, the Chinese market contributed new orders of approximately RMB 728.4 million, marking a 1.8% increase from the previous year.
In the overseas markets, the Group was awarded contracts in Iraq for energy project management services, production enhancement technical services, and digital intelligence technical services during the quarter. However, new orders declined by 12.7% year-on-year due to delays in some client tender plans. In other overseas markets, the Group secured projects such as well completion technical services in Algeria, an energy project management contract in Chad, and inspection services in Kazakhstan. Affected by the broader Middle East situation, project bidding progress in some GCC countries was delayed, leading to an 85.3% drop in new orders.
In the Chinese market, the Group continued to lead with technological innovation, securing high-quality orders. During the quarter, it won contracts for drilling technical services, production enhancement technical services, and natural gas and new energy infrastructure projects. New orders in China increased by 1.8% compared to the same period last year.
Throughout the quarter, the Group advanced its lean operations, ensuring high-quality execution of orders. In Iraq, following the military conflict from late February, reduced oil exports due to disruptions in the Strait of Hormuz led to delays in some projects. However, the overall impact on the Group's operations was manageable. Notably, its capital-light energy project management business in Iraq and preparatory projects for future capacity construction were less affected.
During the period, the Group commenced drilling the first exploration well at its Defurei oilfield on February 22, with operations progressing steadily. Iraqi oil companies expressed appreciation for the Group's commitment to maintaining operations and advancing stable oilfield development during sensitive times, and commended the phased achievements in development progress. In other overseas markets, including Africa and Southeast Asia, operations continued efficiently. The Group's mud service team in Africa received praise from project supervisors for outstanding performance, demonstrating high execution efficiency and teamwork.
Additionally, through technical exchanges and on-site support with multiple partners, the Group facilitated the successful implementation of key operational projects. In China, major projects got off to a strong start, with some operations completed ahead of schedule or exceeding production expectations. Breakthroughs were achieved in intelligent drilling and complex condition handling capabilities. The Group launched the FiberMind optical fiber monitoring intelligent interpretation platform, enabling full-process intelligent handling of oilfield fiber optic data to enhance operational efficiency, safety management, and asset value appreciation. Furthermore, Tongao Inspection Group successfully passed an on-site review for additional special equipment eddy current testing (ECT) capabilities, further expanding its non-destructive testing service offerings.
As of March 31, 2026, the Group's order backlog stood at approximately RMB 16.924 billion. This includes about RMB 7.0705 billion from the Iraqi market, accounting for 41.8% of the total backlog; approximately RMB 1.5725 billion from other markets, representing 9.3%; and around RMB 8.2811 billion from the Chinese market, constituting 48.9%.