Sinopec Oilfield Service H1 2026 Revenue RMB 37.66B, Net Profit RMB 510M

Sinopec Oilfield Service Corp released its 2026 interim report on August 18. During the reporting period, the company achieved consolidated operating revenue of RMB 37.66 billion, up 1.7% year on year; net profit attributable to shareholders of the listed company was RMB 510 million, up 3.5%; and net cash flow from operating activities was RMB 2.94 billion, up 36.6%. The increase in operating revenue was mainly due to higher work volumes in overseas pipeline and oil and gas field surface construction projects.

During the period, international oil prices trended upward overall. The average spot price of Brent crude in the North Sea was USD 91.74 per barrel, up 27.6% year on year. Domestically, China steadily advanced oil and gas reserve and production increases, with crude oil and natural gas output both hitting record highs for the same period. Exploration and development capital expenditure increased steadily, and the oilfield services industry maintained a steady upward trend.

As of the end of June 2026, the company provided oil and gas engineering and technical services in more than 20 provinces, over 70 basins, and more than 550 blocks in China, covering five major segments: geophysics, drilling engineering, logging and mud logging, downhole special operations, and engineering construction, spanning the entire process of exploration, drilling, completion, oil and gas production, and gathering and transportation. Overseas, it provided oilfield technical services in 26 countries and regions.

The company signed new contracts totaling RMB 64.08 billion in the first half, up 0.6% year on year, the best level for the same period since the 13th Five-Year Plan. Among these, new contracts from the domestic external market reached RMB 20.34 billion, up 110.1%. Drilling services achieved main business revenue of RMB 18.2 billion, roughly flat with the same period in 2025, with drilling footage of 5.74 million meters, up 2.5%, and average mechanical drilling speed up 4.3%. Engineering construction services achieved main business revenue of RMB 9.98 billion, up 15.2%, with new contracts of RMB 27.01 billion, up 58.7%. The company won contracts for long-distance pipeline projects under China Oil & Gas Pipeline Network Corp, including Wen 23–Anqing and Su-Wan-Yu, with a combined contract value of RMB 4.4 billion, and ensured the successful one-time commissioning of the ethane recovery project in the Daniudi gas field. Geophysical 2D seismic work volume increased 87.3% year on year, and new contracts for BeiDou business increased 26.5%.

In downhole special operations, fracturing efficiency in key work areas increased 7.1% year on year. New production capacity from cooperative development of hard-to-recover reserves reached 1.296 million tonnes of oil and gas equivalent, and the Dingshan block cumulatively produced over 600 million cubic meters of natural gas.

International business achieved main business revenue of RMB 11.22 billion in the first half, up 20.9%, accounting for 30.1% of total main business revenue. Twenty idle drilling rigs in Saudi Arabia resumed operations, with several rigs ranking among the top ten on Aramco's efficiency list. Major projects in Kuwait (southern drilling package), Ecuador (drilling and completion total package), and Uganda and Iraq were being performed in an orderly manner.

The company's self-developed Idrilling (Yinglong) scientific drilling system has been applied to 614 wells cumulatively, achieving an average increase in mechanical drilling speed of 19.8% and an average reduction in drilling cycle of 12.1%. The first domestically produced fully automatic casing drilling system was officially put into use, achieving full automation of casing conveying, connection, and drilling processes and unmanned operations on the rig floor. The first domestic automatic casing drilling rig was deployed, reducing personnel by 38%, improving construction efficiency by 30%, and lowering operating costs by 30%. Rotary steering technology has been applied on a large scale to more than 1,000 wells. The 175°C high-temperature rotary steering system set two domestic deepest records, with a build-up point at 7,416 meters and a vertical depth of 7,694 meters. In the first half, the company applied for 411 patents, including 270 invention patents.

In cost management, the company exported 8,600 personnel to external projects, generating revenue of RMB 420 million. Combined with equipment automation upgrades and optimized job allocation, it achieved cumulative cost reductions of RMB 210 million. The original value of transferred and activated assets was RMB 430 million, and equipment leasing saved RMB 70 million. Through standardized equipment design and centralized procurement, procurement costs were saved by 9.2%. Completed 167 internal business mutual supply transactions.

On August 17, the National Development and Reform Commission and the National Energy Administration jointly issued the 15th Five-Year Plan for Oil and Gas Development, which explicitly proposes accelerating large-scale and efficient development of deep and ultra-deep oil and gas, implementing an offshore oil and gas capacity improvement project, ensuring long-term stable production of major mature oilfields such as Daqing and Shengli, and continuously expanding the market space for oil and gas exploration and development. In May, the Ministry of Industry and Information Technology issued the Reference Guide for the Integrated Application of Industrial Internet and Oil and Gas Storage and Transportation Industry (2026), to promote the digital, intelligent, and green transformation of the oil and gas storage and transportation industry.