Petro-king Oilfield Services Limited provided earnings guidance for the year ending December 31, 2014. For the period, the board of directors of the company reported that based on the preliminary assessment of the group's unaudited consolidated management accounts for the eleven months ended November 30, 2014 and the confirmed orders and service contracts for the month ending December 31, 2014, the group is expected to record a net loss for the year ending December 31, 2014 as compared to a net profit for the year ended December 31, 2013. The expected net loss is mainly due to the decrease in revenue and the increase in operating costs in 2014 as compared to that of 2013.

The decrease in revenue is due to adjustments in the China market as well as risk-control measures imposed by the Group in order to manage the Group's business exposure in Venezuela. In the past eleven months, the group had invested in oilfield service equipment and staff resources in order to expand and enhance its service capacity in multistage fracturing services for unconventional gas projects in China. Such capacity expansion and enhancement has led to a significant increase in the operating costs of the group in 2014.

However, the development of the unconventional gas projects in China was much slower than what the company expected at the beginning of the year and significant revenue contribution from such business segment has yet to materialize.