Net loss for the first quarter ended 31 March 2017 was recorded at RMB533.2m ($77.34m), narrowing from the bigger deficit of RMB922.7m in the same period of last year.
COSL noted that the entire oilfield services industry continues to face challenges and uncertainties.
“Although the group’s operating environment was surrounded by pressures, the group continued to promote its cost management and control measures and endeavored to maintain and explore its markets, which resulted in the increase in both workload and service prices of certain businesses in semi-submersible drilling rigs, marine support services and well services segments during the period,” COSL said.
The Chinese firm also observed that global oil price has recently recovered to some extent and the capital expenditure for 2017 disclosed by its major customer, CNOOC, would increase as compared with 2016.
“In accordance with the seasonal features of the group’s operation, the work volumes of business segments will further increase in the second quarter and service prices of partial businesses will change as compared with the middle of last year,” COSL added.
In 2016, COSL posted a full year loss of RMB11.46bn as it took huge impairments of around RMB7bn amid the weak offshore oilfield services market.
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