Sinopec Oilfield Service Corporation (Sinopec SSC, 01033) reported audited 2025 results. Revenue declined 0.5% year-on-year (YoY) to RMB80.71 billion, but net profit attributable to shareholders rose 4.3% YoY to RMB0.66 billion under PRC ASBE (RMB0.70 billion under IFRS).

Gross margin improved 0.3 percentage point to 8.1%. Basic earnings per share increased to RMB0.035. The company generated RMB6.65 billion in operating cash inflow, more than doubling last year’s RMB3.10 billion. Capital expenditure stood at RMB3.45 billion.

Total assets remained stable at RMB77.25 billion, while total liabilities edged down to RMB67.99 billion. The gearing ratio (net debt-to-capital) rose to 73.4% from 69.8%. Equity attributable to owners expanded 7.0% to RMB9.26 billion. Owing to accumulated losses of RMB1.81 billion at the parent-company level, the board proposes no dividend for 2025.

Segment performance • Drilling engineering remained the largest contributor with RMB36.85 billion revenue (-8.3% YoY). • Engineering & construction rose 15.9% to RMB20.64 billion, becoming the fastest-growing segment. • Geophysical services recorded RMB5.72 billion (-3.1%); logging/mud-logging RMB3.80 billion (+5.8%); special downhole operations RMB10.97 billion (flat YoY).

Geographically, domestic business generated RMB59.38 billion (-4.1%), while Hong Kong, Macau, Taiwan and overseas markets contributed RMB20.01 billion (+10.5%), lifting overseas share to 25.2%.

Contracting and backlog Newly-signed contracts reached a record RMB95.60 billion (+4.8%), including RMB26.70 billion from overseas customers (+9.9%). Utilisation of drilling teams averaged 90.6%.

Capital structure and liquidity Short-term borrowings increased to RMB28.66 billion, partially offset by a rise in cash equivalents to RMB4.66 billion. Long-term borrowings expanded to RMB1.45 billion. No assets were pledged; total available credit lines from Sinopec Group subsidiaries amount to RMB43.60 billion plus USD80 million.

Shareholder movements Between January and May 2025 the company repurchased and cancelled 22.37 million A shares (0.12% of total share capital), reducing issued shares to 18.96 billion.

Outlook for 2026 Management targets new contract value above RMB92.50 billion, prioritising safety, technology and cost efficiency. Planned capital expenditure is RMB3.24 billion, focusing on rig upgrades, high-end tools and digital transformation.

No material litigations, acquisitions or fund misappropriation were reported during the year. The annual report with full financial statements will be available on HKEx and the company website.