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Macquarie downgraded China Oilfield Services (A-Shares) (601808:CH) from Outperform to Neutral on Tuesday, while lowering its price target to RMB14.20 from RMB17.60.
The rating cut follows news that Saudi Aramco (TADAWUL:2222) terminated contracts for two COSL jackup rigs ahead of schedule, according to the research firm.
The terminated contracts involve the COSLBoss rig, which was originally contracted through September 2025, and the Hai Yang Shi You 936 rig, which had been under contract until April 2027, as reported by Esgian.
Macquarie cited these early contract terminations as the primary reason for reducing both earnings estimates and valuation multiples for the Chinese offshore drilling contractor.
The downgrade reflects concerns about China Oilfield Services’ near-term revenue outlook following the unexpected loss of these Saudi Aramco contracts.
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