Since 2024, international oil prices have shown relatively high fluctuation at a wide range, with oil and gas companies increasing investment in oil and gas exploration and development, and the overall investment scale in global upstream exploration and development has maintained stable growth. High oil prices are driving an increase in upstream capital expenditures, and the Oil Service Industry is expected to continue improving.

According to Spears & Associates' forecast, the global oilfield services market size is expected to grow by 7.1% year-on-year in 2024, indicating strong growth momentum in the Industry. In terms of oil and gas extraction development, the structure of oil and gas extraction is expected to evolve from conventional oil and gas to unconventional oil and gas, from onshore oil and gas to offshore oil and gas, and from shallow water to deep water.

Everbright's Research Reports indicate that looking forward to 2025, the increase in capital expenditure will support the high boom in oil services, with the market size of oil service projects steadily rising. The domestic 'three major oil companies' will enhance oil and gas production, propelling the 'increase reserves and production' to a new level.

The oil service engineering companies under the 'three major oil companies' have maintained growth in new contract amounts. As the backlog of Orders gradually turns into revenue, the operating income and profits of these companies are expected to achieve further growth, with continued bullish outlook for 2025.

Related Hong Kong stocks for Oil Service Projects:

CHINA OILFIELD (02883): For Q1-Q3 2024, in the drilling service sector, the drilling platform operated for 13,166 days, showing stable year-on-year performance. Among them, self-elevating drilling platforms operated for 10,595 days, +2.0% year-on-year, while semi-submersible drilling platforms operated for 2,571 days, -9.7% year-on-year due to weather factors. The utilization rate of semi-submersible platforms' calendar days decreased by 7.5pp year-on-year; in the oilfield technology service sector, the volume of main business line operations has maintained growth, and overall revenue size has continued to grow; in the Ship service sector, business operation and management of over 200 vessels accumulated 53,162 operation days, +29.4% year-on-year; in the geophysical exploration sector, 2D survey operation volume was 15,306 kilometers, +17.8% year-on-year, while 3D survey workload was 21,426 square kilometers, +79.6% year-on-year. However, due to weather and other factors, the total seabed operation volume was 899 square kilometers, -43.6% year-on-year. In the first three quarters of 2024, CHINA OILFIELD's capital expenditure was 95.34 billion yuan, +6.6% year-on-year, with the parent company maintaining strong capital expenditure, providing robust support for the company's performance.

SINOPEC SEG (02386): In the first half of 2024, key projects such as Huizhou Ethylene will reach their peak construction period. The company plays a key role in leading the low-carbon transition of China's refining and processing industry. The company has or is steadily advancing a series of technologies that make energy transition possible, including oil conversion, New Materials, hydrogen energy, and carbon capture, storage, and utilization technologies. In the first half of 2024, the newly signed contract amount saw a significant year-on-year increase, achieving the best results for the same period in history. In the first half of 2024, the newly signed contract amount reached 50.066 billion yuan, up 32.7% year-on-year, setting the best historical results for the same period; the uncompleted contract amount was 157.775 billion yuan, up 15.8% year-on-year. Among them, the newly signed domestic contract amount was 33.113 billion yuan, up 10.6% year-on-year; the newly signed overseas contract amount was 16.95 billion yuan (2.354 billion USD), up 117.8% year-on-year; overseas contracts accounted for 34%. The newly signed contract amount in emerging fields such as New energy and New Materials was 7.406 billion yuan, up 266.5% year-on-year.

ANTON OILFIELD (03337): On May 13, Anton Oilfield Services announced at noon on the Hong Kong Stock Exchange that the group successfully bid for the development rights of the Dhafriyah oil field in the fifth and sixth rounds of bidding in Iraq on May 12, with a development period of 25 years. The group will participate in the development of this oil field block as the operator. In the first quarter of 2023, the group added orders of approximately 1.7019 billion yuan, an increase of 8.3% compared to the same period last year, of which newly added orders in the Chinese market were approximately 0.9945 billion yuan, an increase of 3.2% compared to the same period last year.