HK Stock Market Move | CHINA OILFIELD (02883) Falls Over 4% in Early Trading as Q3 Results Miss Market Expectations; Morgan Stanley Says Limited Room for Earnings Upgrades

CHINA OILFIELD (02883) fell over 4% in early trading. As of press time, it was down 3.88% at HK$7.67, with turnover of HK$91.8016 million. On the news front, China Oilfield Services reported revenue of RMB35.73 billion for the first nine months, up 2.5% year-on-year; net profit was RMB3.23 billion, up 0.7% year-on-year, versus market expectations of 17% earnings growth in 2026. Morgan Stanley said it expects the market to cut earnings forecasts in the coming months, maintaining its H-share "Equal-weight" rating and target price of HK$8, while maintaining an "Underweight" rating on the A-shares. Morgan Stanley noted that China Oilfield Services' third-quarter earnings per share were broadly in line with its expectations but below market consensus, reinforcing its view that even with high energy prices, room for earnings upgrades remains limited due to constrained rig utilization and limited operating leverage. CNOOC's capex downgrade cycle remains a key concern and could weigh on demand for more complex drilling activities and high-value wells.