On October 30, ZPEC disclosed its third quarter report for 2023, which hit a record high in terms of single-quarter performance and the performance of the first three quarters. In the first three quarters of this year, the company achieved operating income of 2.997 billion yuan (~USD424.28M), an increase of 35.23% over the same period last year. Net profit attributable to shareholders of listed companies was 690 million yuan (~USD98.51M), an increase of 85.65% year-on-year. Net profit attributable to shareholders of listed companies was deducted from non-recurring items. The net profit of profit and loss was 672 million yuan (~USD96M), a year-on-year increase of 80.99%.

Relying on the company's integrated strategic layout and advantages, ZPEC plays its role as the main force in increasing oil and gas reserves and production. ZPEC made every effort to increase reserves and production in the Wensu Block, to conduct detailed research on oil reservoir technology and measures to increase oil production in old wells, resulting in crude oil production reaching a new high. From the beginning of 2023 to now, the Wensu Project has achieved a crude oil production of 430,800 tons, an increase of 116,000 tons over the same period last year, and a year-on-year increase of 36.85%.

While the exploration and production business continued to maintain high growth, the company's oil services engineering and equipment manufacturing businesses also recovered strongly. In the first three quarters of 2023, the company's oil service engineering business recovered significantly, with a total footage of 586,100 meters completed. The newly signed oil service engineering orders were over 3.112 billion yuan (~USD426M), an increase of 43.93% compared with the same period last year. The equipment manufacturing segment is driven by scientific and technological research and development, putting the results of intelligent research and development into practice, and gradually realizing full coverage of intelligent drilling. As of September 30, 2023, the company's newly signed equipment sales and leasing orders were 148 million yuan (~USD211.4M), an increase of 74.12% compared with the same period last year.

In the next step, ZPEC will continue to adhere to the efficiency-centered and in-depth implementation of the strategy of "exploration and production leadership, three integrated section collaborations". By deepening reform, management innovation, and digital transformation, and focusing on refined reservoir research, safety and environmental protection, and quality and efficiency improvements, the profitability of each section will be further enhanced, thus creating greater value and returns for shareholders.

(Securities Affairs Department Wang Bingyu)​