HK Stock Market Move | CHINA OILFIELD (02883) fell over 4% in the afternoon; oil well services and marine operations fell short of expectations. Morgan Stanley downgraded its subsequent earnings forecast.

CHINA OILFIELD (02883) fell more than 4% in the afternoon. As of the time of publication, it was down 4.33% at HKD 7.18, with a trading volume of HKD 47.7645 million. In news, China Oilfield Services recently released its interim results, reporting an operating revenue of RMB 23.787 billion for the first half of the year, a year-on-year increase of 2.0%. The net profit attributable to shareholders was RMB 2.009 billion, up 2.3% year-on-year. Notably, revenue from drilling services reached RMB 7.477 billion in the first half, an increase of 3.3% year-on-year. The number of operation days for semi-submersible platforms grew by 11.4% year-on-year, with the average daily revenue rising to USD 176,000, reaching a milestone high. Morgan Stanley stated in their research report that the interim results of China Oilfield Services indicate a moderate operational environment for contracted drilling amid high oil prices. However, the performance of oilfield services and offshore operations fell short of expectations, combined with foreign exchange losses, leading the firm to lower its earnings forecast for 2026 by 5%. They also believe that oil prices may experience a correction next year, which would exert pressure on drilling day rates and operating days, while also reducing their earnings forecasts for 2027 and 2028 by 8% and 5%, respectively.