Offshore Oil Engineering (600583) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 11.32 billion, down 15.72% year-over-year due to lower project volume, with net profit attributable to shareholders at RMB 1.10 billion, down 8.21%.

• Cash flow from operations remained strong at RMB 2.23 billion, and the company maintained a stable capital structure with an asset-liability ratio of 40.37%.

• The company executed 73 major projects, with 9 completed and delivered, and continued to expand in domestic and international markets, including significant progress in green energy and offshore wind.

• New contract value signed in H1 2025 reached RMB 12.07 billion, with total backlog at RMB 40.7 billion, supporting future revenue stability.

• No interim dividend or capital increase from reserves was proposed for the period.

Financial highlights

• Operating revenue: RMB 11.32 billion, down 15.72% year-over-year.

• Net profit attributable to shareholders: RMB 1.10 billion, down 8.21% year-over-year.

• Operating cash flow: RMB 2.23 billion, down 13.91% year-over-year.

• Basic and diluted EPS: RMB 0.25, down 7.41% year-over-year.

• Gross margin improved as cost reduction outpaced revenue decline; R&D expenses increased 40.85% to RMB 456 million.

Outlook and guidance

• Focus on strengthening core capabilities, lean management, and technological innovation in H2 2025.

• Emphasis on expanding overseas and emerging industry markets, with continued resource coordination and efficiency improvements.

• Commitment to high-quality, efficient project delivery and value creation for shareholders.