China Oilfield Services sees oil price steady at US$50–70, sets capex at 8.44bn yuan

China Oilfield Services (2883) expects global oil prices to remain stable at between US$50 (HK$390) and US$70 per barrel, despite heightened uncertainty caused by rapid supply chain restructuring, COSL chairman and chief executive Zhao Shunqiang said on Wednesday.

Zhao added that the United States' control over Venezuela's oil supply would have limited impact on China's crude oil imports, noting that the group has minimal business exposure in Venezuela.

COSL preliminarily expects its capital expenditure this year to be about 8.44 billion yuan (HK$9.47 billion), mainly allocated to equipment investment and upgrades, technological equipment renewal and retrofitting, research and developing spending, and base construction. 5.5 billion yuan of this amount will be allocated to equipment investment, said chief financial officer Qie Ji. 

Regarding its dividend policy, Qie said the company is preparing its financial results and reviewing its cash position, adding that payouts are likely to see a steady increase, subject to board approval.

COSL vice president and board secretary Sun Weizhou said the mainland market currently accounts for about 75 percent of the group's total revenue, while Southeast Asia and the Middle East together contribute around 70 percent of its overseas sales. Looking ahead, the company expects to expand into at least four to five new markets over the next five years.

Cynthia ZHONG