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Yangtze Business Daily News● Yangtze Business Daily reporter Xu Yang

CNOOC Engineering (600583.SH), a listed company controlled by China National Offshore Oil Corporation, has achieved outstanding operating performance.

On the evening of August 18, COOEC released its 2024 semi-annual report. In the first half of the year, the company achieved a net profit of 1.197 billion yuan, a year-on-year increase of 21.69%. As of the end of the reporting period, the company's total orders on hand were approximately 38.8 billion yuan.

The Yangtze Business Daily reporter noted that in recent years, COOEC has focused on overseas markets and accelerated its "going global". In the first half of 2024, the company's overseas new contract value was about 4.975 billion yuan, accounting for 39.74% of the total new contract value in the first half of the year, an increase of 1.2 percentage points year-on-year.

In order to accelerate the localization of overseas companies, COOEC plans to increase capital by US$68 million to its subsidiary International Co., Ltd.

Revenue decreased in the first half of the year but profit did not decrease

COOEC is the only large-scale engineering general contracting company in China that integrates the design, procurement, construction and offshore installation, commissioning, maintenance of marine oil and gas development projects, as well as liquefied natural gas, offshore wind power, and refining projects. It is also one of the largest and most powerful marine oil and gas engineering general contractors in the Asia-Pacific region.

In recent years, COOEC's operating performance has reached new heights. The financial report shows that in 2023, the company achieved operating income of 30.752 billion yuan, a record high, a year-on-year increase of 4.75%; net profit was 1.621 billion yuan, a year-on-year increase of 11.08%, maintaining positive growth for four consecutive years and reaching a nearly 8-year high.

On the evening of August 18, COOEC released its 2024 semi-annual report. During the reporting period, the company achieved operating income of 13.429 billion yuan, a year-on-year decrease of 1.013 billion yuan, a decrease of 7.01%; net profit was 1.197 billion yuan, a year-on-year increase of 21.69%; non-net profit was 839 million yuan, a year-on-year increase of 7.43%.

Regarding the decline in operating income in the first half of the year, COOEC explained that the main reason was the concentrated delivery of overseas projects in the same period last year. The newly contracted overseas projects in this period were in the start-up stage, and the year-on-year decrease in overseas income led to a slight decline in income. In the first half of the year, the company's workload hit a new high for the same period, major projects made breakthroughs repeatedly, and actively promoted market development. The company's development continued to maintain a good momentum.

The financial report shows that in the first half of the year, COOEC actively promoted the construction of oil and gas projects at home and abroad. During the reporting period, a total of 72 projects above designated size were put into operation, of which 7 projects were completed and delivered.

In terms of market development, in the first half of the year, the new contract value of COOEC was 12.518 billion yuan. Among them, the new overseas contract value was about 4.975 billion yuan, accounting for 39.74% of the total new contract value in the first half of the year, an increase of 1.2 percentage points year-on-year. As of the end of the reporting period, the company's total order backlog was about 38.8 billion yuan, providing strong support for the continued development of its business.

Looking ahead to the second half of 2024, COOEC said that the company still faces a heavy workload, with 35 projects planned to be completed and put into production. The estimated construction and processing volume may exceed 140,000 tons, and the number of ship-days invested will exceed 15,000.

Steady expansion, total assets exceeding 46 billion

As the main force of Chinese enterprises' "going global", after more than 40 years of construction and development, COOEC has provided high-quality products and services to many Chinese and foreign owners such as CNOOC, ConocoPhillips, Shell, Saudi Aramco, Petrobras, Qatar National Energy, JGC, Technip, Fluor, etc., and its business has expanded to more than 20 countries and regions.

On the evening of August 18, COOEC announced that in order to accelerate the localization of overseas companies, enhance the function of overseas capital pools, and improve the bidding and operation guarantee capabilities of overseas projects, the company plans to increase its capital in International Limited by US$68 million (equivalent to approximately RMB 486 million).

It is reported that the International Co., Ltd. is a wholly-owned subsidiary of COOEC established in 2007. It currently owns the "Offshore Oil 698" ship, as well as four branches in Abu Dhabi, Uganda, Brunei and Iraq, and holds controlling stakes in three subsidiaries in Thailand, Brazil and Canada. In 2023, the International Co., Ltd. achieved operating income and net profit of 207 million yuan and 22.6784 million yuan respectively, with total assets of 1.151 billion yuan and owners' equity of 645 million yuan at the end of the period.

COOEC said that this capital increase is in line with the company's overall strategic development direction in the future, which will help improve COOEC's transnational business index, enhance the financial status and capital strength of the International Company, meet customers' evaluation requirements for contractors when bidding for overseas projects, promote the goal of overseas companies signing overseas project contracts as the main body, and enhance the role of the International Company as an overseas capital pool and firewall.

In recent years, the scale of COOEC's business has continued to expand, and its total assets have also grown steadily. From 2017 to 2023, the company's total assets increased from 28.4 billion yuan to 43.25 billion yuan; by the end of June 2024, the company's total assets further increased to 46.22 billion yuan. By the end of June 2024, the company's debt-to-asset ratio rose to 40.82%.

It is worth noting that COOEC attaches great importance to scientific and technological innovation capabilities. In 2022 and 2023, the company's R&D expenses exceeded 1 billion yuan for two consecutive years, 1.122 billion yuan and 1.186 billion yuan respectively. In the first half of 2024, the R&D expenses were 324 million yuan, and the total investment in the past two and a half years was 2.632 billion yuan.

At present, COOEC has formed ten major equipments with "large lifting and pipe-laying vessel series", "1500-meter deep-water operation ROV series", "construction site and construction equipment" as the core, and ten major technologies with "deep-water floating platform technology", "underwater system and product technology", "ultra-large offshore structures and modular technology" as the core.

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