Offshore Oil Engineering (600583) H2 2025 earnings summary

Executive summary

• Achieved RMB 27.16 billion in operating revenue for 2025, down 9.32% year-over-year, with net profit attributable to shareholders at RMB 2.08 billion, down 3.56% year-over-year.

• Secured RMB 48.85 billion in new contracts, up 61.51% year-over-year, with overseas contracts reaching RMB 30.84 billion, both record highs.

• Maintained a sound capital structure, with total assets at RMB 49.19 billion and net assets attributable to shareholders at RMB 26.58 billion.

• Proposed a cash dividend of RMB 1.96 per 10 shares, totaling RMB 867 million, representing 41.57% of net profit.

Financial highlights

• Operating revenue: RMB 27.16 billion (down 9.32% YoY); net profit attributable to shareholders: RMB 2.08 billion (down 3.56% YoY).

• Gross margin for offshore engineering improved due to cost control and efficiency measures.

• Net cash flow from operating activities: RMB 3.59 billion (down 6.66% YoY).

• Basic EPS: RMB 0.47; return on weighted average net assets: 7.78%.

• R&D investment: RMB 1.19 billion, 4.38% of revenue.

Outlook and guidance

• The 15th Five-Year Plan focuses on international expansion, technological innovation, and green transformation.

• Global offshore oil and gas investment expected to grow over 3% in 2026, with emphasis on deep-water and LNG sectors.

• Strategic priorities include enhancing EPC capabilities, accelerating new energy business, and digital transformation.