China Oilfield Services: Non-GAAP Net Income Increased 237.9% YoY in 2025; New Contract Orders Exceeded 95.6 Billion Yuan

On the evening of March 16, Sinopec Oilfield Service (600871.SH) disclosed its 2025 annual report. During the reporting period, the company focused on high-quality development, aligning itself with the main theme of the report, and coordinated the advancement of four key tasks: strengthening technology, expanding markets, reducing costs, and ensuring safety. It deeply implemented breakthrough efficiency initiatives, successfully achieved the goals set at the end of the 14th Five-Year Plan, and maintained steady improvement in operational performance, with its core competitiveness continuously enhanced.

Financial data shows that the company achieved an annual operating revenue of 80.71 billion yuan, with a net profit attributable to shareholders of 660 million yuan, representing a 4.3% year-over-year increase. Net profit after deducting non-recurring gains and losses was 450 million yuan, a 237.9% increase. Its profitability maintained steady growth; net cash flow from operating activities reached 6.65 billion yuan, a significant increase of 3.55 billion yuan compared to the previous year, greatly improving cash flow and financial structure, further strengthening risk resistance, and laying a solid foundation for future development.

Dual domestic and international growth: new contract value exceeded 95.6 billion yuan

As a leading large-scale integrated oil and gas engineering and technical service provider in China, Sinopec Oilfield Service boasts over 60 years of operational experience and rich project execution capabilities, with comprehensive service abilities covering the entire oilfield service industry chain. It has ranked among the top contractors for major international oil companies such as Saudi Aramco and Kuwait Petroleum for many years, maintaining a solid industry position.

By 2025, facing a complex market environment characterized by volatile international oil prices, the company accurately assessed market opportunities and proactively planned its strategies. The total new contract value for the year reached 95.6 billion yuan, a 4.8% increase, setting a new record since its establishment. This fully demonstrates the company’s strong market expansion capabilities and resilience in business development, providing a solid guarantee for future revenue growth.

In the domestic market, the company continued to consolidate its strategic position in Sinopec’s core markets by expanding cooperation on reserves development projects. New crude oil and natural gas production capacities reached 1.2 million tons and 1.7 billion cubic meters respectively, driving a 30.5% increase in drilling footage, activating 105 drilling teams, and achieving a market share of 93.5%. This supported Sinopec’s crude oil output returning to 36 million tons and natural gas production surpassing 40 billion cubic meters, making significant contributions to national energy security.

The company also achieved breakthroughs in external markets, successfully developing shale gas blocks in Yunnan and Guangxi. New contracts for long-distance pipeline projects with the National Pipeline Network Group totaled 9.42 billion yuan; light asset and high value-added services such as rotary steering and high-temperature logging performed well, generating 860 million yuan in revenue, continuously optimizing the business structure, and steadily improving profitability.

International operations have become a new growth engine, with both revenue and contract value increasing. During the period, overseas main business revenue reached 20.01 billion yuan, a 10.5% increase, accounting for 25.2% of the company’s total main business revenue, an increase of 2.6 percentage points year-over-year. New overseas contracts totaled 26.7 billion yuan, up 9.9%. The company successfully renewed 10-year drilling projects with Saudi Aramco and Kuwait Petroleum, with a contract value of 18.2 billion yuan, and secured the total package project for Total’s Iraq Rumaila oilfield Phase II worth 2.1 billion yuan. The efficient completion of Kuwait’s first large-scale drilling package project marked the company’s full entry into the high-end oil service market in the Middle East. Additionally, the Saudi MGS project received the “Best EPC Contractor Award” and the “Project Management Innovation Award,” and Sinopec’s 1503 team was awarded the “Best Onshore Drilling Team” globally by Total, significantly enhancing the company’s international brand influence and competitiveness in high-end markets.

Offshore oil services continue to develop, with substantial growth in operational benefits

While actively expanding overseas, Sinopec Oilfield Service leverages its advantages to accelerate offshore oil service development. Currently, it possesses integrated offshore capabilities including marine drilling, well operations, geophysical exploration, logging, well testing, vessel services, and offshore engineering design and research. In 2025, new offshore contract value reached 5.19 billion yuan, a 39% increase year-over-year; its wholly owned subsidiary, Sinopec Marine Oil Engineering, achieved a net profit of 1.6 billion yuan on revenue of 2.4 billion yuan, a 55.3% increase, with significantly improved operational quality.

Digital and intelligent transformation accelerates, with lean management demonstrating remarkable results

In recent years, Sinopec Oilfield Service has focused on the core direction of “intelligent transformation,” driven by technological innovation, deepening lean management reforms, and promoting high-quality development across production, operations, and technological innovation, providing strong support for oil and gas exploration and development.

In the field of digital and intelligent transformation, the company has built five major intelligent scenarios, continuously promoting the deep application of digital tools and breakthroughs in core technologies. Among these, the Idrilling (Yinglong) scientific drilling system has performed outstandingly, applied to 526 wells, effectively increasing average mechanical drilling speed by 18.3% and shortening drilling cycles by 11.6%. It was recognized as one of the top ten landmark achievements in national oil and gas exploration and development, becoming an important benchmark for the company’s digital transformation.

Core technological breakthroughs continue, with自主创新能力不断增强. The company’s自主研发的“经纬领航”旋导技术已达到国际先进水平，温度适应指标提升至175℃，最高偏斜角达15.5°/30米，实现国内全场景规模化应用；260℃/206MPa超高温高压测井仪成功入选国家能源局第五批能源领域首台（套）重大技术装备，彰显公司在高端技术领域的突破能力。

生产经营效率大幅跃升，成为公司高质量发展的重要支撑。2025年，公司加快推进钻机电动化、自动化改造升级，全年完成钻井进尺1115万米，同比增长1.6%，平均钻井周期同比缩短10.0%，复杂故障响应时间同比降低11.3%。其中，SHZ4-7X井以59.63天完钻井深8476米，刷新中国石化8000米至8500米级钻井周期最短纪录；焦页44-Z5HF井水平段长度达5442米，创行业同类井水平段最长纪录，充分展现了公司过硬的施工技术与综合服务实力。

精益管理成效显著，核心盈利能力持续提升。2025年，公司毛利率达8.1%，同比提升0.3个百分点，营业成本同比下降0.8%，管理费用和销售费用分别同比减少4.9%和2.7%，成本控制效果明显。通过成立业务承揽统筹中心，全年完成承揽输出7605人，创收6.6亿元；调配钻机、顶驱等设备，设备综合利用率提升至92.9%，节约设备外租费用3.5亿元，精益管理的成效得到充分体现。

油气行业景气向上，“十四五”目标定位世界一流发展

从行业环境来看，随着油气行业的发展，深层、超深层和深海油气勘探开发力度不断增强，为油服行业带来广阔的增长空间。东莞证券研报指出，全球经济温和复苏为原油需求提供坚实支撑，全球主要产油国主动控产导致供给弹性受限，市场处于紧平衡状态。预计到2026年，随着OPEC+加强减产、供给端明显收缩，加上需求持续复苏，原油市场将进入去库存阶段，供需格局由宽松转向紧平衡，国际油价有望中期偏强运行。

东莞证券预测，国际油价在中高位运行，加上国内外油气企业资本支出稳健，预计将拉动油服设备采购需求。国内复杂工况勘探开发力度加大，将推动深层、超深层、页岩油气等复杂工况设备需求增长，行业景气度将进一步回升。油服行业具有技术、资金和客户准入的多重高壁垒，行业头部企业和国产替代标的将充分受益。作为全产业链一体化油服龙头，石化油服有望持续享受行业红利。

展望“十四五”，石化油服将以二次创业推进高质量发展为主题，坚持质的有效提升与量的合理增长，系统加强技术、装备、管理和队伍建设，聚焦高端化、智能化、绿色化三大转型，实施创新驱动、人才强企、价值引领、市场开拓、产业焕新、绿色低碳“六大战略”，加快打造世界一流技术引领型油服公司。