China Oilfield Services Ltd. provided earnings guidance for the first half of 2016. Due to the impact of the decline in the service price and utilization rate, and the impairment of fixed assets and goodwill, the company's expected net profit attributable to the owners of the company for the first half of 2016 is around RMB 8.4 billion based on the preliminary estimates by the finance department in accordance with the Hong Kong Financial Reporting Standards, among which, the loss from asset impairment is approximately RMB 7.1 billion. The company's net profit attributable to the owners of the company for the same period of last year was RMB 894,748,000.

Due to the impact of the market situation, the recoverable amounts of some overseas drilling rigs of the company are lower than the carrying value of these assets, and the company has recognized provision of approximately RMB 3,688,408,000 for fixed asset impairment. Furthermore, the goodwill generated in the acquisition of Awilco Offshore ASA in 2008 was allocated to a group of the drilling services cash-generating units. Based on the impairment test result, the recoverable amount of the group of the drilling services cash-generating units which the goodwill is allocated is lower than its carrying amount. As a result, the Company has recognized provision of approximately RMB 3,455,378,000 for goodwill impairment. The impairment of fixed assets and goodwill is mainly made on the acquired overseas assets.