Yantai Jereh Oilfield Services Group (002353) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥4.96 billion, down 8.54% year-over-year, mainly due to fewer large oil & gas engineering service orders compared to last year.

• Net profit attributable to shareholders rose 4.33% year-over-year to ¥1.09 billion, with basic EPS at ¥1.07, up 3.88%.

• Operating cash flow improved significantly to ¥1.06 billion, a 307.74% increase year-over-year.

• New orders reached ¥7.18 billion, up 18.92% year-over-year, with backlog at ¥9.19 billion.

• Overseas revenue accounted for 48.04% of total, with overseas gross margin up 1.25 percentage points year-over-year.

Financial highlights

• Total assets at June 30, 2024 were ¥33.57 billion, up 5.63% from year-end 2023.

• Net assets attributable to shareholders reached ¥19.74 billion, up 2.16% from year-end.

• Gross margin for oilfield services and equipment was 37.05%, up 2.04 percentage points year-over-year.

• R&D investment increased 15.68% year-over-year to ¥203 million.

• Non-recurring gains (mainly asset disposals and government subsidies) contributed ¥168.87 million to net profit.

Outlook and guidance

• The company plans a cash dividend of ¥1.2 per 10 shares, totaling ¥123 million, pending shareholder approval.

• Focus remains on dual main businesses: oil & gas and new energy, with continued global expansion and innovation.

• Strategic shift in fundraising: funds originally for new energy equipment now redirected to oil & gas technical services to match market demand.