Offshore Oil Engineering (600583) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 13.43 billion, down 7.01% year-over-year due to fewer overseas project deliveries.

• Net profit attributable to shareholders rose 21.69% year-over-year to RMB 1.20 billion, driven by improved project margins and cost control.

• Cash flow from operations remained strong at RMB 2.59 billion, despite a 10.83% decrease from the prior year.

• Major domestic and international projects advanced, with significant breakthroughs in deepwater and green energy engineering.

• Order backlog at period-end was RMB 38.8 billion, supporting future growth.

Financial highlights

• Operating income: RMB 13.43 billion, down 7.01% year-over-year.

• Net profit attributable to shareholders: RMB 1.20 billion, up 21.69% year-over-year.

• Basic and diluted EPS: RMB 0.27, up 22.73% year-over-year.

• Gross margin improved as cost reduction and efficiency measures offset lower revenue.

• Cash and cash equivalents at period-end: RMB 6.93 billion.

Outlook and guidance

• H2 2024 workload remains heavy, with 35 projects planned for completion and over 140,000 tons of fabrication expected.

• Focus on project execution, resource allocation, and market expansion to drive sustainable growth.

• International and green energy markets to be further developed, leveraging strong order backlog.