Yantai Jereh Oilfield Services Group (002353) H2 2024 earnings summary

Executive summary

• 2024 revenue reached RMB 13.35 billion, down 4.00% year-over-year, with net profit attributable to shareholders up 7.03% to RMB 2.63 billion.

• Operating cash flow surged 147.30% year-over-year to RMB 2.59 billion, reflecting improved collections and cost control.

• High-end equipment manufacturing and natural gas business drove new order growth, while oilfield engineering services saw a revenue decline due to fewer large project deliveries.

• Overseas market sales mix improved, with new orders up 65.37% year-over-year, despite a 7.39% drop in overseas revenue.

• Board proposes a cash dividend of RMB 6.9 per 10 shares, with total cash dividends and share buybacks accounting for 38.46% of audited net profit.

Financial highlights

• Revenue: RMB 13.35 billion, down 4.00% year-over-year; net profit: RMB 2.63 billion, up 7.03%.

• Gross margin: 33.70%, up 0.95 percentage points; basic/diluted EPS: RMB 2.59.

• Operating cash flow: RMB 2.59 billion, up 147.30% year-over-year.

• Total assets: RMB 35.70 billion, up 12.33% from year-end 2023; net assets attributable to shareholders: RMB 21.16 billion, up 9.49%.

• Dividend payout: RMB 706 million for 2024, with additional interim and buyback distributions.

Outlook and guidance

• 2025 focus on dual-core strategy: oil & gas and new energy, with continued global expansion and digital transformation.

• Anticipates stable oil and gas demand, with natural gas as a key growth driver; expects lithium battery recycling and negative electrode materials to face margin pressure.

• Plans to accelerate Middle East manufacturing base and strengthen overseas/localized operations.

• Emphasis on cash flow management, risk control, and R&D for high-end equipment and digital oilfield solutions.