Dear Shareholders and friends,
On behalf of Sinopec Oilfield Service Corporation (SSC), I would like to extend my sincere gratitude to you all, especially to the shareholders for your interest and support.
SSC currently is the largest provider of petroleum engineering and oilfield technologies in China. It has 5 major business sectors ranging from geophysics, drilling, logging, downhole service and to petroleum engineering & construction. It provides integrated services, including exploration, drilling, well completion, oil/gas production, oil/gas gathering and transmission, and well abandonment, which covers the full industrial chain of oil/gas field E&P. And it has accumulated experiences and strong capabilities in serving the shale gas, tight oil/gas field, high sulfur gas fields, extra-deep oil/gas field and mature oilfields.
At the end of 2014, the company leveraged the back door of the former public company, 'Sinopec Yizheng Chemical Fiber Company Limited', and completed the Material Assets Re-organization to go public in A Share and H Share Capital Markets. Focusing on extending markets, optimizing services, developing technologies and making benefits, we make joint efforts to provide integrated full-chain services and be a world class petroleum service provider. The company has been awarded with great honors such as 'Top 100 Capital Brands of China's Listed Companies', 'China Securities' Golden Bauhinia Best Board of Directors of Listed Companies' and 'Obermatt 2016 China's Best CEO Gold Award, etc.
Since listed in the stock markets, SSC has experienced severe challenges of fluctuated oil prices, and dual slips of work volumes and service rates. To tackle the challenges, we have channeled great efforts to develop markets, cut down cost and fees, make profits and implement more strict management. Also we have moved forward on innovation, reforms, structural adjustment and transformational development. Achievements have been made through the efforts. Meanwhile, we focus on extending markets, strengthening featured technologies and enhancing regional strength, especially the overseas market. We follow 'the Belt & Road Initiatives', implement the 'Going-out' strategy, and successfully make 'Sinopec Drilling' a new name card of China in the Middle East. To achieve better coordination between reforms and management, we have channeled efforts to merge subsidiaries of similar business, eliminate inner barriers to optimize structures, enhance management to avoid risks, and stimulate vitality to improve efficiency. The company's organization structures, crews and business have been further streamlined, and all the efficiency of organizing, utilizing materials and production have been improved in tackling problems. The company also placed focuses on technological innovation, initially developed a series of shale gas engineering technologies and provided great support for the Fuling 10-billion cubic meters shale gas productivity. We leveraged our global leading technologies for deep wells and extra deep wells and successfully drilled the Shunbeiping No.2 Well which is the deepest well in Asia and completed drilling at the depth of 8,433 meters, making new Asian records of drilling and logging, etc. The company also adheres to the development vision of Green and Low Carbon, fully implements QHSE(Quality, Health, Safety and Environment) management requirements, and makes achievements on safe and green development. It also takes care about the employees and actively participates in the public welfare. In the overseas market, SSC vigorously implements strategies of globalization and hires local employees to play a role in local economic as well as social development.
In the future, challenges in the oilfield service market will be more and more severe. Both opportunities and challenges are waiting for our witness. Continuing to carry forward good traditions and work styles, we will take advantages of opportunities and make improvement to tackle problems. Also we will move forward to extend markets, make reforms on work styles and structures to improve efficiencies. We will make overall improvement on the core competitiveness and achieve sustainable development to make more values for our Shareholders and the whole society.
Finally, I would like to express my thanks to our employees for their hard work, and to all friends especially the Shareholders for their support!