SSC Releases Annual Results 2017 in Hongkong

On March 28,2018, SSC held 2017 Annual Results Release Conference in Hong Kong. Jiao Fangzheng who is vice president of Sinopec Group and chairman of SSC, Sun Qingde who is deputy chairman and president of SSC, Chen Xikun who is executive director and vice president of SSC, Li Tian who is chief accountant and Li Honghai who is secretary of the Board were present at the conference.

81 analysts and 9 journalists attended the 2017 Annual Results Release Conference when SSC senior management released the performance of 2017 and expectations for 2018, and answered questions concerned by investors and the Press.

In 2017, international oil prices generally stabilized and went up with fluctuation, then foreign and domestic oil companies recovered their CAPEX for E&P; but competitions among oilfield service providers were more severe. SSC moved forward against challenges and continued to develop the main business to improve the core competitiveness and market competitive capabilities; continued to extended overseas business to broaden the margin of development; continued to strengthen corporation management to increase service quality and profit; and continued to deepen reforms to spire all the members ‘energy to make solid movement toward the target of fighting, striving and surviving. In 2017, SSC made joint efforts to increase revenues, reduce losses and improve gross profit rates, changing the direction of benefit indicators’ arrows which had been downward since the Cold Winter of the industry. And in 2017, SSC made revenue of 48.49 billion yuan, with YoY increase by 13%; and net profit of -10.58 billion yuan, with YoY loss of 5.53 billion yuan.

Chairman Jiao Fangzheng stated: 2018 is a critical year for SSC to turn from the losses to making profits; the company needs to seize the opportunity of recovery and channels all efforts to grab markets and make more profits; the planed newly signed contract value is 57.8 billion yuan; company reforms should be continued to inspire energy and improve capabilities of making profits; inner management should be strengthened to reduce losses and increase profits greatly, and to achieve the annual target of reducing cost of 3.1 billion yuan; then R&D capabilities should continue to be improved to  enhance the company’s core competitiveness.

The company has made profits in the first quarter of 2018, which sets a solid base of running for the target of making profits in 2018. SSC will be more active to conquer conflicts, dissolve risks and take challenges. It will strive to grow the business, increase profits and make better performances for the shareholders as well as the whole society.

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