SSC Announces the Intrim Results in 2016

On August 31, SSC announced its 2016 interim results in Hong Kong. SSC chairman Jiao Fangzheng, SSC deputy chairman and president Sun Qingde, executive director and executive vice president Zhou Shiliang, chief accountant Wang Hongchen and board secretary Li Honghai attended the meeting.
114 analysts from almost one hundred investment agencies and journalists from 14 presses were also present. SSC senior management addressed the company’s intrim results and expectations, and answered questions that are intensely concerned by the investors and the press.
In the first half of 2016, international crude oil prices kept fluctuation at the lower levels, domestic and foreign oil companies continued to cut down upstream E&P CAPEX, dual reduction of oilfield service workload and prices, competition in the market is much more severe, global oilfield service business entered the “Chilly Winter”, and main oilfield companies experienced losses. By June 30, 2016, its consolidated turnover stood at 28.69 billion RMB yuan, a year-on-year decline of 19.2%; and its net loss stood at 4.51 billion RMB yuan.

To meet the challenges, SSC vigorously expanded the external market, whose revenue accounted for more than a half of the total revenue for the first time. The overseas market grew rapidly against the severe challenges with an increase of revenue at 88%. Meanwhile, the company channeled great efforts to dig potentials, increase profits and control the cost strictly. It moved forward the reform and restructuring, and removed low-end business. Also it put focus on advocating technical researches, upgrade and applications. It has moderately managed the investment scale and tempos, conquered challenges, and maintained a stable progress in developing production as well as the business.

In the second half, SSC will focus on improving development quality and increasing profits, extending markets with all the efforts, advancing internal reforms, optimizing management systems, reducing cost and fees, and advocating technical innovations. In the era of new economic normal, the company prepares itself for the biggest long-term challenge of low oil prices, strives for victory in the battle of “thriving, surviving and developing”, spares no effort to pave the way for sound development, and make a better performance in the hard time.

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