On 14 April, China Oilfield Services Limited (“COSL”) was recognized as a “Company under CNOOC with Excellent Board of Directors Performance in 2024” during the Board Development Work Promotion Meeting hosted by parent company CNOOC. The honor represents CNOOC’s affirmation and appreciation of the performance of the COSL Board of Directors (the “Board”) and full endorsement of its corporate governance standards.
Insisting on observing the major political principles of the Community Party in leading state-owned enterprises (“SOE”) and the direction of SOE reforms to build a modern corporate system, the COSL Board has made scientific, reasonable and efficient decisions to ensure its five key development strategies have been rolled out in firm strides. Its governance excellence has assured the Company’s high-quality development.
In building the internal governance system of the Company, the Board is the core operational decision-maker. It has scientifically defined approval powers and relevant matters of 12 crucial functions, including the Party Committee, the general shareholder meeting, the Board itself and the management. It has to also refine the accountability system for “One Charter, Two Systems, Eight Rules, and Four Lists” to form a governance mechanism with clear authority, horizontally in sync and vertically connected, and comprehensive and all-engulfing; able to align with modern corporate governance regulations and reform requirements of Chinese SOEs. With a complete governance system giving it guidance, the Company held six board meetings during the year and reviewed 54 proposals. Execution reviews of five resolutions and tracking of 15 follow-up items were passed, realizing comprehensive “decision-making, implementation and tracking” closed-loop management, ensuring seamless alignment of plans made at the top with actual execution. At the same time, to tackle the challenge of ensuring important and complex duties are carried out, the Company has organized several special communication meetings with external directors, and such prior communication efforts have gained for it the unanimous support from external directors for major business issues, evidencing the high quality and efficiency of its governance system.
Embracing the responsibilities of “formulating strategies, making decisions, and preventing risks”, the Board finds its direction to deepen reforms and build a first-class company, and operate the main business of the Company with governance excellence. The Company has mapped out an in-depth plan for industrial development, laid down clearly the strategic functional positioning of headquarters departments and business divisions, bolstered synergies between joint ventures and the parent company and continuously fine-tuned development direction. Addressing market demand sore spots and challenges, the Company uses “the integrated model of I4R research, production, use and reform” in tackling key technological problems to unlock technological value, giving it a cluster of independent high-tech equipment, namely "Haijing", "Haimai", "Haihong", "Xuanji" and "Xuanyue" for exploration, and drilling and completion works. On operation management and control, the Company has comprehensively strengthened full project lifecycle management to help continuously improve profitability at home and abroad. In 2024, the Company achieved outstanding performance, generating an operating revenue of more than RMB48,300 million and a net profit of RMB3,400 million, garnering widespread recognition and praise.
Giving great emphasis to investor relations management, the chairman and independent directors communicate with investors frequently through various means such as results conferences, offline reverse roadshows and research, and investment strategy meetings of banks and brokerages. During the year, the Company organized more than 120 investor events for close to 2,000 investors from more than 850 institutions. With ESG disclosure capturing the global limelight today, the Company has seized the global green economic transformation and carbon-reduction trends, and made ESG one of its strategic cornerstones. For 19 years, it has released ESG reports offering the capital market with readable, comprehensive and comparable reference that show its efforts to continue to improve the quality of ESG disclosure. For its outstanding governance performance, the Company has won 18 industry awards including “Tianma Award for Investor Relations of Chinese Listed Companies”, "Best Capital Market Communication Award", "The Nineteenth China Listed Company's Most Strategically Visionary Chairman", "Hong Kong International ESG List-Best ESG Practice Award" and “China ESG Golden Awards”.
In the future, the Company will continue to focus on strengthening its Board, seeking guidance from comprehensive in-depth reform, firmly adhere to the goal of modernizing its governance capabilities, so that it can better serve national strategic initiatives, and quickly build a world-class enterprise.
