On March 26, 2019, Sinopec Oilfield Service Corporation held 2018 Annual Results Announcement in Hong Kong. Chairman Liu Zhongyun, Vice Chairman and CEO Mr. Sun Qingde, Executive Director and Vice President Mr. Chen Xikun, CFO Li Tian and Secretary to the Board Mr.Li Honghai attended the meeting. More than 130 of institutional investors, analysts and journalists attended the conference. At the meeting, the management firstly introduced the 2018 operations, financials and 2019 outlook. Subsequently, Chairman Liu Zhongyun gave a speech. Then in Q&A session, the management answered the question that investment institutions and medias were interested in.
In 2018, oil price continued to maintain upward trend with fluctuations. Domestic and overseas oil companies increased their E&P CAPEX, which has brought a continuous recovery in oilfield service industry. The upstream CAPEX of our largest client SINOPEC increased by 34.8% YOY. Seizing opportunity of the rebounded oil price and the increased upstream investment, we strengthened market development, deepened internal reform and enhanced technology innovation to speed up and raise efficiency. In 2018, we recorded a revenue of 58.409 billion yuan, increased by 20.2% YOY. Gross profit margin improved significantly, which was 8.7% in 2018, up 13.9 percentage points YoY. We achieved a net profit of 142 million yuan, an increase of 10.73 billion yuan YOY, turning a loss into profit.
Mr. Liu Zhongyun said that during the year, we put greater pressure on ourselves, unswervingly deepened reform, went all out to explore the market, strictly and conscientiously strengthened management. Our streamlining effort paid off. The business structure was optimized, with significant improvement in vitality and efficiency. We turned a loss into a profit in business operation. The results were hard won. Meanwhile we have enriched our experience in the market, gained growth and won trust. Looking forward to the future, especially in the coming period, the oilfield service industry and the Company will develop steadily and better. For the long run and lay out the future, we have worked out 10 major measures to reverse losses and extricate ourselves from difficulties. We hope that through our efforts in 2019, we can further consolidate our profit base. We will adhere to the five key tasks of technology-leading, value creation, supporting oil and gas, and serving customers, focusing on stable growth, restructuring, quality improvement, and reform. to further reduce the operating costs and improve the profitability of single projects and per capita efficiency through continuously optimizing and adjusting the business structure, market structure, workforce structure and strengthening internal reform. We strive to get on the right track of all-round sustainable development in 2020.(Rong Liming Liu Wenxu)