SSC Released the 2021 Annual Results in Beijing

On March 30, 2022, Sinopec Oilfield Service Corporation held 2021 Annual Results Announcement Conference in Beijing. The meeting was carried out simultaneously in three ways: live audio broadcast, network text interaction and telephone connection, communicating with investors from both A-share and H-share. A total of 195 investors, analysts and media reporters participated in the conference. The company’s chairman Mr. Chen Xikun,Executive Director and CEO Mr. Yuan Jianqiang, Independent Director Mr. Dong Xiucheng, Deputy General Manager Mr. Zhang Jiankuo and CFO and Board Secretary Mr. Cheng Zhongyi attended the meeting. At the meeting, the management firstly introduced the operations, financials of 2021 and outlook for 2022. Then in Q&A session, the management answered the questions in which investment institutions and medias were interested.

In 2021, seizing favorable opportunity in significantly rising oil prices, the company closely focused on ensuring exploration and high-quality development, expanded premium markets, optimized production and operation, reduced costs and expenses, deepened reform and innovation, optimized resource allocation and achieved steady growth in operation. In 2021, the newly signed contract value of the company was RMB70.9 billion, a year-on-year increase of RMB1.1 billion; the revenue was RMB69.53 billion, up 2% YOY; the net profit was RMB180 million, a year-on-year increase of 127.6%, getting off to a good start for the 14th Five Year Plan.

Mr. Chen Xikun said, looking into 2022, geopolitics, COVID-19, energy reforms, IT application and intelligent technologies are expected to bring great changes to the world economy and the oilfield service industry. Heavy responsibilities leave us no way but to do our best. SSC will uphold our principles of development through “serving customers, underpinning oil and gas, leading technology and creating value” and strategies of achieving the “professional, market-oriented, international, high-end and characterized” development to accelerate the building of a technology-leading oilfield service company that will play an important role in ensuring national energy security and driving our high-quality development with full force.

The company will vigorously expand the market to increase revenue and profit, and continuously increase the proportion of high-quality scale markets. In the Sinopec market, we will focus on ensuring the increase of oil and gas reserves and production and the construction of key projects for production, supply, storage and sales; in the domestic non-Sinopec markets, we will actively expand key markets such as PetroChina, CNOOC, and Pipechina; In overseas markets, we will continue to expand and strengthen the three major markets, facilitate the technical service business to go global, and strive to sign new contracts worth more than 72 billion yuan in 2022.

The company will pool the niche resources to achieve breakthroughs in critical core technologies, give full play to our advantages of an integrated industrial chain, continue to increase investment in R&D, accelerate cooperation through joint ventures, continuously improve the establishment of four R&D platforms for well bore engineering, geophysics, engineering and construction, and offshore engineering. Through the joint efforts of “two R&D centers and twelve technological centers” for well bore engineering, we will break through the "bottleneck" and key core technologies, and comprehensively enhance the core competitiveness of technical services.

The company will continue to deepen reforms and continuously stimulate innovation and efficiency. We will accelerate the construction of a project-based management system supported by "two pools, two depots and one platform" to optimize resource allocation and improve project profitability; promote the development of drilling, downhole operations and reservoir expertise; promote the trial on the scientific reform of the Geological Measurement and Control Institute of Sinopec Matrix, advance the industrialization of competitive products, and carry forward the upgrading of business quality and efficiency.

The company will embrace green and low-carbon development, and accelerate the layout in the “dual-carbon” (carbon emission peaking and carbon neutrality) businesses. By leveraging the role of the newly established new energy technological R&D centre, we will actively promote the scientific research and industrialized development of CCUS (carbon capture, utilization and storage), and develop the new energy engineering and construction businesses, such as offshore wind power, photovoltaic power, geothermal and waste heat and underground coal gasification. We will expand the market of new energy and develop businesses with high added value. We will follow the goal of becoming the first hydrogen energy company in the world of Sinopec Group, and actively make the layout for the comprehensive utilization of hydrogen. Meanwhile, the establishment of the Service Integrated Cloud Platform for petroleum engineering has been accelerated to push forward IT application and digital transformation of our businesses.

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