Sinopec Oilfield Service Corp announces increased profits, capital plans

** Sinopec Oilfield Service Corp (HKEX: 1033) announced its 2024 annual results, showcasing a 1.4% increase in revenue to RMB81.1 billion and a 7.2% rise in net profit attributable to shareholders, reaching RMB630 million. This growth, underpinned by a 10.7% surge in new contracts totaling RMB91.2 billion, is attributed to optimizing operations, expanding into high-quality markets, and promoting technological innovation. For 2025, Sinopec Oilfield is targeting RMB83.5 billion in new contracts and plans capital expenditures of RMB3.24 billion, focused on upgrading equipment and expanding into new energy sectors. The company faces certain risks for 2025 that requires mitigation including exposure to climate-related disruptions, cost pressures, and the need for technological advancements. In line with its growth strategy, the board has proposed to seek shareholder approval for guarantees of up to RMB28.5 billion for its subsidiaries and US$275 million for its joint venture, Mexico DS Company, as it seeks out opportunities in Mexico and elsewhere. Furthermore, due to an apparent impairment, there will be a RMB274 million reduction in total profit for impairment of long-term equity investments into the Mexico DS company.