China Oilfield Services Limited (02883) saw its stock plummet by 5.06% during intraday trading on Wednesday, despite reporting an increase in overall profit for the first half of 2025. The sharp decline comes as investors digest the company's mixed interim results, which revealed some concerning trends in its oil technical services segment.

According to the company's earnings report, China Oilfield Services posted a 23.33% year-over-year increase in profit attributable to owners, reaching RMB 1.964 billion. However, this positive headline figure was overshadowed by a 3.5% decline in oil technical services revenue, which fell to RMB 12.38 billion. CICC, in its research report, noted that the parent company's oil technical services order volume may have decreased slightly compared to the previous year, likely contributing to investor concerns and the subsequent stock sell-off.

Despite the current downturn, there are some bright spots in the company's performance. The drilling segment showed significant recovery, with its operating profit margin increasing by 4 percentage points year-over-year to 9%. Additionally, CICC analysts believe that the impact of Middle East drilling vessel suspension has largely subsided, and the company's contracts in Southeast Asia and Brazil are expected to generate higher day rates and strong profits in the coming periods. These factors could potentially support a recovery in the stock price if the company can address the challenges in its oil technical services segment.