COSL plunges into big loss of $1.3bn in first half

COSL booked a net loss of RMB8.4bn ($1.26bn) in the six months ended 30 June 2016, as against the profit of RMB894.75m in the same period of last year.

The deficit was mainly blamed on impairment loss on property, plant and equiment of RMB3.69bn and impairment loss on goodwill for its drilling services segment of RMB3.45bn, totalling RMB7.14bn, compared to the much lower impairment charges of RMB990.57m in the year-ago period.

The group explained that the impairments were taken due to the continued deterioration of global oilfield services market and recent low level of oil price.

First half revenue plummeted by 43.4% year-on-year to RMB6.99bn due to weak demand on the back of a gloomy oilfield services sector.

“Looking forward to the second half of the year, the overall market remains a cautious attitude to the trend of crude oil prices. The trend of short term oil prices will still be under a relatively high fluctuation. Every business segment of the company will continue to face tough challenges,” COSL said.

The group has businesses in drilling services, well services, marine support services, and geophysical and surveying services.

Meanwhile, COSL announced recently it inked a deal with Mexico’s Hokchi Energy, subsidiary of Pan America Energy, to provide offshore rig and logistics integrated services.