Bank of America Securities: Raise CHINA OILFIELD (02883) target price to 8.2 Hong Kong dollars, third-quarter performance exceeds expectations.

Bank of America Securities released a research report stating that China Oilfield (02883) had a net profit of 3.21 billion yuan in the first three quarters, a year-on-year increase of 31%. The net profit in the third quarter was 1.246 billion yuan, a year-on-year increase of 46% and a quarterly increase of 16%, performing better than expected. The third quarter revenue was 11.5 billion yuan, a year-on-year increase of 4% and a quarterly decrease of 8%, in line with expectations. The slowdown in revenue growth was mainly due to the slowing expansion of oilfield services. At the same time, the contribution of drilling services has rapidly increased, mainly benefiting from the execution of high daily rate contracts in the North Sea and the improvement in drilling platform utilization. Bank of America Securities raised China Oilfield Services' target price from 8 Hong Kong dollars to 8.2 Hong Kong dollars, with a neutral rating.