CPEC(SH:600339) Chang Jiang Shang Bao·2025-09-28 23:06Core Viewpoint - China Oil Engineering (中油工程) has secured significant overseas contracts, indicating strong international market performance despite a decline in domestic contract signings [2][3][9]. Group 1: Recent Contracts - On September 26, China Oil Engineering announced an EPC contract with Iraq's Basra Oil Company for a seawater pipeline project, valued at $2.524 billion (approximately 18.032 billion RMB) [2][3]. - In the past three months, the company has signed four major overseas contracts totaling 35.38 billion RMB, with three of these projects located in Iraq [6][5]. - The contract for the Iraq seawater pipeline project has a duration of 54 months, which includes 42 months for design, procurement, and construction, followed by 12 months for operation and maintenance training [3][4]. Group 2: Financial Performance - In the first half of 2025, China Oil Engineering reported a total revenue of 36.287 billion RMB, a year-on-year increase of 12.18%, while net profit was 470 million RMB, down 10.87% [9]. - The company achieved a new contract signing amount of 125.076 billion RMB in 2024, marking a 14.39% year-on-year increase, with domestic contracts accounting for 70.32% and international contracts for 29.68% [8]. - In the first half of 2025, the new contract amount from the international market was 23.182 billion RMB, representing a year-on-year growth of 9.86% [9]. Group 3: Market Position and Strategy - China Oil Engineering's business model encompasses the entire value chain of engineering construction, providing comprehensive solutions to clients [3]. - The company has been enhancing its collaboration with international energy firms, such as Total Energy, to solidify its position in the global energy engineering services market [9][10]. - The company plans to raise 5.913 billion RMB through a private placement to fund oil and gas storage and transportation projects and to supplement working capital [10].