COSL posts strong Q3 2025 earnings, renews key related party deals

COSL reported a 46.1% increase in net profit attributable to shareholders for Q3 2025, reaching 1,245.6 million yuan, with total revenue up 3.6% to 11,533.4 million yuan. Year-to-date, net profit attributable to shareholders rose 31.3% to 3,209.4 million yuan, driven by improved equipment utilization rates and profitable operations from high day-rate projects. Drilling services saw a 12.3% increase in operating days to 14,784, while calendar day utilization rates for drilling platforms reached 90.3%, up 11.6 percentage points.

The company's board approved new three-year framework agreements for ongoing related party transactions with CNOOC Group, extending from 2026 to 2028. These agreements cover COSL's provision of oilfield services to CNOOC Group and CNOOC Group's provision of equipment leasing, motive power, raw materials, auxiliary services, and property services to COSL. The projected annual caps for oilfield services are 48,400 million yuan in 2026, rising to 57,200 million yuan by 2028, reflecting anticipated increases in business volumes and alignment with CNOOC Group's capital expenditure trends.

These related party transactions, crucial for COSL's business given CNOOC Group is its largest customer, are conducted at market prices under fair and reasonable commercial terms. The board emphasized that these agreements would ensure stable revenue for COSL and a reliable supply of essential services, without affecting COSL's independence or harming minority shareholder interests.