On August 30, 2023, Sinopec Oilfield Service Corporation held 2023 Interim Results Announcement in Hong Kong. Chairman and Secretary of the Party Committee Mr. Chen Xikun, Executive Director and General Manager Mr. Yuan Jianqiang, CFO and Secretary to the Board Mr. Cheng Zhongyi and Deputy General Manager Mr. Du Kun attended the meeting. At the meeting, the management introduced the 2023 interim results and future outlook detailedly, then answered the questions in depth that investors and medias were interested in. 60 of institutional investors, analysts and journalists attended this announcement.

In the first half of 2023, taking advantage of the strategic opportunities brought up by increased investment in the oil and gas sector and the continued recovery of the oilfield service industry, the Company managed to pursue progress while maintaining stability and have fully expanded our market, enhanced our efficiency, strengthened technology capability and promoted reform, while focusing on management, risk prevention and improving the quality of development, thereby continuously enhanced operational efficiency. In the first half of the year, the Company recorded a total amount of newly signed contracts of RMB53.44 billion, representing a year-on-year increase of RMB540 million. Our completed drilling footage reached 5,610 kilometers, representing a year-on-year increase of 740 kilometers. Our operating revenue amounted to RMB37.13 billion, representing a year-on-year increase of 12%, with a net profit of RMB330 million, representing a year-on-year increase of 58%. We have achieved our best record in terms of the newly signed contracts value, completed drilling footage and operating revenue in the corresponding period since the “13th Five-Year” Plan, which demonstrated our strong developmental resilience and potential.

Mr. Chen Xikun said, looking forward to the second half of the year, the Company will focus more on building a world-class, technology- driven oilfield service company. We will vigorously implement high-quality development and deepen reform and management improvement, as well as continue to increase investment in research and development for the r industrialization of the R&D achievements, in order to further build up the Company’s growth momentum. We will also strive to efficiently coordinate and optimize our market planning and resource allocation, and increase our efforts to develop high-quality and efficient markets domestically and internationally, so as to continuously improve market quality and efficiency. In respect of continuous enhancement of production efficiency, we will actively promote production operation modes such as “well factory” and “large platform fracturing”. To give full play to the advantages of our technology, talents and industrial chains, we will optimize the cooperative development model for difficult-to-use reserves, expand the scale of oil reservoir development, and set a new efficiency growth point for the Company. We aim tat speeding up the upgrade transition to an integrated “general contracting, technical service and reservoir operation” contractor, continuously improving our core competitiveness.

At the same time, the Company will take the initiative to adapt to the trend, and proactively embrace the electric revolution, digital revolution and green revolution. We plan to accelerate the electrification, automation, and intelligent transformation of equipment and tools, expand the applications of new energy-saving and carbon-reduction technologies. We will particularly promote the development of low-carbon new energy businesses such as CCUS, hydrogen pipelines and photovoltaic construction, so as to take the lead in building green oilfield services and contribute our wisdom in oilfield service to the exploration and development of “low-carbon” and “zero-carbon” green oil and gas resources. We are committed to becoming a leader and role model in practicing the “dual-carbon” strategy in the field of oilfield services.