CHINA OILFIELD (02883) surged over 4% in morning trading, rising 4.19% to HK$7.46 with trading volume reaching HK$62.01 million as of press time.

On the news front, CHINA OILFIELD is scheduled to hold a board meeting on August 27 to consider and approve its interim results. Citi research noted that the firm has initiated a 90-day upside catalyst watch on CHINA OILFIELD, believing the company benefits from high utilization rates of its drilling platforms, with net profit potentially improving in second and third quarter results.

The company currently operates four drilling platforms in the North Sea and Europe, with another platform having commenced cooperation with Petrobras in Brazil in August. The increased overseas expansion may lead to higher day rates and better profit margins compared to the domestic market.

With rising regional day rates, Citi expects the company's average daily revenue to improve, which should drive higher earnings growth.