Sinolink Securities: Maintains "Buy" rating on CNOOC Oil Services, all sectors are seeing a turnaround in profits or a decrease in losses.

The research report from Cinda Securities points out that CNOOC's revenue and profit in the first half of the year both achieved year-on-year growth, mainly contributed by drilling business. In terms of income, the company mainly benefited from drilling and marine businesses with year-on-year growth of +12.8% and +19.8% respectively. The increase in drilling business income was significant, mainly due to the start and operation of high day-rate projects on semi-submersible platforms in the Norwegian North Sea region, as well as increased operational workload. Profitability in all sectors has improved or reduced losses. Especially, the company's overseas gross profit margin increased by 6.06 percentage points to 11.17% year-on-year, mainly due to a significant turnaround from losses to profits in overseas drilling business. In addition, due to high oil price volatility, the company recorded an impairment loss of 82.03 million yuan in the first half of the year. With the four platforms in the Middle East that were suspended last year entering new contract cycles one after another, the normal operation of high day-rate drilling platforms in the Norwegian North Sea region, and the South Sea No. 8 platform starting operations in South America, it is believed that there is still room for improvement in daily rates in the second half of the year, and platform utilization rates are expected to remain high. Considering the company's continuous overseas expansion and the good industry outlook, the company's performance is expected to continue to grow from 2025 to 2027, maintaining a "buy" rating on the company.