Thanks to the three pillar initiatives, namely ongoing deepening of reform efforts, innovations in management and establishment of corporate culture, COSL achieved notable growth in its operational results in 2007, with solid progresses made in all major areas.
In 2007, COSL s operational results hit historical heights again, achieving notable accretions in sales revenue, net revenue, operational profit and net profit from the previous year. The Company s performance attracted eyeballs in the capital markets. Upon completion of its initial public offering of A shares and against a backdrop of increased total number of shares, the Company s revenue is estimated to have risen 42% from the previous year while net profit is estimated to report a 95% growth from the previous year.
COSL s operational results in 2007 not only exceeded our original targets, but also represented the fastest growth recorded in the Company s history. This progress laid down a solid foundation for completion of the targets laid down in the Eleventh Five-Year Plan ahead of schedule, said Mr. Yuan Guangyu, Assistant General Manager of China National Offshore Oil Corporation (CNOOC) and Vice Chairman, CEO and President of COSL. The Company will maintain its momentum for rapid development, investing in quicker turnaround and higher quality delivery.
In 2007, COSL made major inroads in reducing energy consumption and emission. Through improving its organizational structure, codifying its management systems, better defining its corporate objectives and assigning responsibilities to all positions, the Company consumed 18,804 fewer tons of standard coals during the year, six times the goal originally set for the year. The Company claimed an initial achievement of a resources-conserving and environment-friendly corporation development model.
In 2008, CNOOC will spend more efforts in exploration, a move that will increase the workload of COSL. Regarding the business development for 2008 and beyond, Mr. Yuan Guangyu said: We have to exhaust our opportunity set to better handle problems emerged from our capacity expansion; create a culture that puts safety in the top priority that helps reform of primitive, obsolete and impaired elements in our development; optimize our market and operational management; upgrade our technical and R&D capabilities, coordinate works on facilities optimization and project management; carry out ongoing, deepened reform measures; grasp better principles of value management, fully utilize the ERP system; unrelentingly pursue merge and acquisition opportunities and sharpen the Company s structural and intellectual strengths.
Mr. Yuan Guangyu added, 2008 is a year of opportunities as well as challenges for COSL. In the future, we shall adhere to our three pillar initiatives : ongoing deepening of reform efforts, innovations in management and establishment of corporate culture to creating an iron-clad, world class COSL team.
