Offshore Oil Engineering (600583) H2 2024 earnings summary

Executive summary

• Achieved operating revenue of RMB 29.95 billion in 2024, down 2.59% year-over-year; net profit attributable to shareholders rose 33.38% to RMB 2.16 billion, a nine-year high.

• Maintained a strong order backlog of approximately RMB 40 billion, with new contracts valued at RMB 30.24 billion.

• Delivered major domestic and international projects, including Asia's first deepwater jacket and the world's largest LNG storage tanks.

• Advanced ESG initiatives, digital transformation, and green energy projects, earning multiple industry awards.

Financial highlights

• Operating revenue: RMB 29.95 billion, down 2.59% year-over-year.

• Net profit attributable to shareholders: RMB 2.16 billion, up 33.38% year-over-year.

• Basic and diluted EPS: RMB 0.49, up 32.43% year-over-year.

• Gross margin for marine engineering increased by 3.04 ppt; domestic project gross margin rose by 3.60 ppt.

• Net cash flows from operating activities: RMB 3.85 billion, down 24.87% year-over-year.

• Total assets: RMB 48.23 billion; net assets attributable to shareholders: RMB 26.27 billion.

Outlook and guidance

• Focus on high-quality development, technological innovation, and green transformation.

• Strategic priorities include expanding international markets, advancing digitalization, and increasing R&D in floating and subsea technologies.

• Targeting further breakthroughs in clean energy, offshore wind, and carbon capture projects.

• 2025 is a critical year for concluding the 14th Five-Year Plan and launching the 15th, with emphasis on lean management and sustainable growth.