Gelonghui October 13?Andong Oilfield Service (03337.HK) announcementIn the third quarter, the global economy is still facing weakening demand and weak production. OPEC continues to implement voluntary production cuts to offset the potential downward pressure on oil prices caused by falling global demand, and international oil prices continue to rise during the quarter. In the face of the complex and ever-changing external environment, on the one hand, the Group continues to give full play to its platform advantages to vigorously develop global oil and gas emerging markets, and on the other hand, it continues to strengthen its internal management around the core indicators of cash flow operation and rate of return, sprint for the annual business target.

In the third quarter, the group's new orders were about 1003.3 million yuan, an increase of 48.8% over the same period last year, of which the Chinese market was about 436.8 million yuan, an increase of 48.0% over the same period last year. Iraq market new orders of about 383.1 million yuan, an increase of 18.0% over the same period last year New orders in other overseas markets are about 183.4 million yuan, an increase of 237.3% over the same period last year.

In the Chinese market, during the quarter, the Group continued to carry out the dual transformation of its business, with reservoir geological research as the core, leading to the upgrading of traditional engineering and technical services. during the quarter, a number of high-quality orders were won in unconventional shale gas, coalbed methane and tight gas blocks, such as geological engineering integrated general contract projects, trial repair projects, and so on. At the same time, the innovative services business continued to expand, and the asset leasing business promoted the new business model of "leasing for sale" of equipment in the industry, continued to explore project opportunities, and won the group's first new order for leasing and selling projects. Testing services expanded into the area of asset integrity testing, winning the Group's first natural gas pipeline integrity inspection project order during the quarter, with a significant increase in new orders in the third quarter as a whole compared with the same period last year.

In overseas markets, Iraq, the Group's major customers have made great efforts to promote production capacity construction, and the Group has also made full use of its advantages to secure project orders for fracturing services, production increase services and oil field operation and maintenance; in other overseas markets, the Group's integrated oil field management project in West Africa and Chad has continued to complete its one-year renewal. In addition, the Group has also obtained project orders for environmental testing projects and trial repair services. In Algeria, Indonesia and other markets, the Group continues to obtain project orders for chemical sales, completion tools sales and so on.

The third quarter was the peak of the group's operations, with accelerated execution of orders-on-hand in major markets. In the Chinese market, under the guidance of reservoir geological technology, the Group has made great achievements in precision engineering technology by completing the customer's first coiled tubing optical fiber testing operation and the first U-shaped geothermal well project optical fiber construction in North China market and Northeast market respectively. The Southwest Dehydrocarbonization capacity Enhancement Project undertaken by the Group and responsible for operation and maintenance maintained stable and high production during the quarter and further expanded production capacity under the instructions of customers. In the Iraqi market, the oil field management project and the oil field operation and maintenance project maintained a full workload, the digital production command center built by the Group was successfully completed during the quarter, and customers held a grand ribbon-cutting ceremony.

As of September 30, 2023, the Group's on-hand order is about 9948.6 million yuan. Among them, the Chinese market is about 5602.3 million yuan, accounting for about 56.3% of the group's total orders on hand, and the Iraqi market is about 3541.6 million yuan, accounting for about 35.6% of the group's total orders on hand. other markets are about 804.7 million yuan, accounting for 8.1% of the group's total orders on hand.