On August 18th, Offshore Oil Engineering Co., Ltd. (“COOEC”) released the Summary of 2024 Semi-Annual Report.
The announcement disclosed that in the first half of 2024, COOEC realized operating revenue of RMB 13.429 billion ( US$ 1.880 billion), a year-on-year decrease of 7.01%; net profit attributable to parent was RMB 1.197 billion, a year-on-year increase of 21.69%; deducted net profit was RMB 839 million (US$ 117 million), a year-on-year increase of 7.43%; net cash flow from operating activities was 2.594 billion yuan (US$363 million), a year-on-year decrease of 10.83%; during the reporting period, COOEC’s basic earnings per share was RMB0.27, and its weighted average return on net assets was 4.77%.
According to the announcement, the change in COOEC’s operating income was mainly due to the concentrated delivery of overseas projects in the same period of the previous year, and the newly contracted overseas projects in the current period were in the start-up stage, and the year-on-year decrease in overseas income resulted in a small drop in income.
According to COOEC, in the first half of 2024, the company’s construction volume continued to increase year-on-year, important projects were promoted with high quality and efficiency, safety performance continued to be excellent, the “Haiji” deepwater series of products realized new upgrades, the industry’s discourse in the field of high-end FPSO construction was further enhanced, and the transformation of clean energy business and green energy was carried out in an orderly way. Moreover, the company has achieved remarkable results in improving quality and efficiency, supply chain construction has been gradually deepened, and the role of value management in promoting the integration of strategy and business has become more obvious.
As for the main projects in the first half of the year, according to the semi-annual report, COOEC’s workload hit another record high in the same period. Specifically, the company actively promoted the construction of domestic and overseas oil and gas projects, and operated 72 projects above scale during the reporting period, of which 7 projects were completed and delivered.COOEC completed the onshore construction of 35 jackets and 11 blocks, the offshore installation of 22 jackets and 9 blocks, and the laying of 168 kilometers of submarine pipelines and 42 kilometers of submarine cables.
The construction business completed steel processing of 271,300 tons, an increase of 16% over the same period of the previous year. Installation and other offshore operations invested 11,400 ship days, a decrease of 12% compared with the same period last year, but the number of jackets and blocks installed at sea increased significantly, and the number of ship days for the installation of large-scale structures increased by 110% year-on-year. During the reporting period, the Company further improved its efficiency, maintained a high operation rate of 90% for its own vessels, and reduced the number of chartered ship days year-on-year.
Meanwhile, COOEC actively promoted market development around strategic layout and market development strategy, and the overall market situation was good. The newly signed contracts in the first half of the year amounted to RMB 12.518 billion (US$ 1.753 billion). Among them, the newly signed overseas contracts amounted to about RMB 4.975 billion (US$ 697 million), accounting for 39.74% of the total newly signed contracts in the first half of the year, representing a year-on-year increase of 1.2 percentage points, and the development of the overseas market has been steadily progressing, which has provided a strong guarantee for the continuous promotion of the high-quality development of the Company’s internationalized business, and laid a solid foundation for the realization of the full-year goal.
As of the end of the reporting period, the total orders on hand amounted to approximately RMB38.8 billion ( US$5,432 million), providing strong support for the continued development of the company’s business.
Looking ahead to the second half of 2024, COOEC said that the company is still facing a heavy workload, with 35 projects planned to be completed, and the estimated construction and processing volume may exceed 140,000 tons, with more than 15,000 ship days put into operation. The Company will focus on capacity building, strengthen project operation control, enhance lean management, scientifically and reasonably deploy and utilize resources, and efficiently complete all production and construction tasks.
COOEC, a listed company controlled by China National Offshore Oil Corporation, is the only large-scale engineering general contracting company integrating the design, procurement, construction, offshore installation, commissioning and maintenance of offshore oil and gas development engineering, as well as liquefied natural gas, offshore wind power, refining and chemical engineering, and is also one of the largest and strongest offshore oil and gas engineering general contracting companies in the Asia-Pacific region. COOEC is headquartered in Binhai New Area, Tianjin. Listed in Shanghai Stock Exchange in February 2002.
