On March 27, 2024, Sinopec Oilfield Service Corporation held 2023 Annual Results Announcement in Hong Kong. Chairman and Secretary of the Party Committee Mr. Chen Xikun, General Manager Mr. Zhang Jiankuo, 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 annual results and 2024 outlook detailedly, then answered the questions in depth that investors and medias were interested in. 58 of institutional investors, analysts and journalists attended this announcement.

In 2023, the Company thoroughly studied and followed the spirit of the 20th National Congress of the Communist Party of China and the important instructions given by General Secretary Xi Jinping during his visit to Shengli Oilfield and Sinopec Jiujiang. The Company kept in mind the earnest instructions, strengthened the mission and responsibility, worked hard and forged ahead under pressure, grasped the favorable opportunities arising from the continuous recovery of the oilfield services market, continued to deepen reform and management, expanded the market and created efficiency with both quality and quantity, firmly promoted scientific and technological innovation. The Company achieved better growth in drilling footage, newly signed contracts amount and other major production indicators, “one profit, five rates” achieved “one stability, one increase and four improvements” and high-quality development has stepped into a new level. In 2023, the Company’s consolidated revenue under PRC ASBE amounted to RMB79.98 billion, representing a year-on-year increase of 8.4%, the best level since the “13th Five-Year Plan”; the net profit attributable to the shareholders of the Company amounted to RMB590 million, representing a year-on-year increase of 23.8%.

Mr. Chen Xikun said, looking forward to 2024, the international oil price will continue to fluctuate at a medium and high level, the high oil price will drive the total capital expenditure of global upstream exploration to continue to increase, the investment in domestic oil and gas exploration and development will also continue to increase. the Company will continue to give full play to its comprehensive oil and gas service capabilities and unique technological advantages, focusing on enhancing the core functions of service support, improving the core competitiveness of the market, shouldering responsibilities and strengthening support, tamping the foundation and ensuring security, expanding the market and optimizing the layout, developing science and technology to increase stamina, grasping reform to increase momentum, and striving to create a new situation of high-quality development, and speeding up the construction of a world-class technology-oriented oilfiled service company.

Firstly, the Company will accelerate the improvement of exploration and development service capabilities, and make every effort to ensure national energy security. Efficiently organize production, strictly implement the connection of processes, promote the “four improvements” and “five megatrends” to a new level, dynamically adjust the scale of the team, strengthen technological integration, accurately ensure the efficient implementation of key work areas and key engineering projects and orderly expand the “factory” construction model of drilling and fracturing, with a view to achieving quick installation and removal and batch construction, promoting the transformation of production models, sparing no effort in improving construction efficiency and production timeliness, and enhancing service assurance.

Secondly, the Company will expand the market, increase efficiency and optimize our layout, in order to make every effort to expand the room for the Company’s development. For the domestic external markets, the Company aims to improve quality and efficiency, continuously enhances the concentration of high-quality and large-scale markets, and increases overall efficiency creation capabilities. Focusing on economic benefits in overseas markets, the Company will continue to increase efforts to explore target markets such as Saudi Arabia, Kuwait, Ecuador, as well as high-end technology service markets. The Company will accelerate the “going out” of high-end businesses and creating high profitability and efficiency.

Thirdly, the Company will anchor on high-level technology for self-reliance and self-strengthening, and strive to accelerate to become a technology-leading enterprise. We will actively promote breakthroughs in key core equipment, thereby accelerating the iteration and upgrading of 10,000-meter ultra-deep shale oil and gas good and fast drilling and completion technologies, and comprehensively improving technological innovation and performance. We will vigorously develop green and low-carbon technologies, strengthen research on photovoltaic, wind power, geothermal and waste heat utilization engineering technologies, promote the iteration and upgrading of CCUS full chain technology, develop key technologies in hydrogen energy production, storage and transportation, so as to actively expand green and low-carbon emerging businesses and cultivate new profit growth poles.

Fourthly, we will continue to deepen our reform and adjustment to strive to enhance development momentum. The Company will focus on the implementation of the “reform deepening and improving action” and the “special action for creating efficiency”, in an effort to continuously amplify the reform effect and effectively solve development problems. We will focus on the operation of the project-oriented management system which is based on “two pools, two reservoirs and one platform”, and actively build a “market-oriented, regional, platform-based, shared and intensive” operating model to reduce management costs and improve efficiency. We will improve the collaborative operation mechanism of internal control, risk control and compliance, firmly improving efficiency and defusing risks, in order to promote the high-quality development of the Company.