CPEC(SH:600339) Chang Jiang Shang Bao·2025-11-12 23:44Core Viewpoint - China Oil Engineering has secured a significant contract for the Kazakhstan Ethane-Propane Pipeline EPC project, valued at approximately $424 million, which is expected to positively impact future revenue and profits over the next 3-4 years [1][3]. Group 1: Project Details - The awarded project is named the "Kazakhstan Atyrau Region Single Corridor Ethane-Propane Pipeline EPC Project," won by a consortium led by China Oil Engineering's wholly-owned subsidiary, China Petroleum Pipeline Engineering Company [2]. - The project has a total investment of $424 million, with a timeline to meet pre-acceptance conditions within 36 months from the issuance of the notice to proceed [3]. Group 2: Contract Performance - China Oil Engineering has shown steady performance in contract signing, with a cumulative new contract amount of 99.216 billion yuan for the first three quarters of 2025, nearing the 100 billion yuan mark [4]. - In 2024, the company achieved a record high in new contract signing, totaling 125.076 billion yuan, representing a year-on-year growth of 14.39% [4]. Group 3: Financial Performance - For the first three quarters of 2025, the company reported revenue of 57.529 billion yuan, a year-on-year increase of 12.42%, but the net profit attributable to shareholders decreased by 17.22% to 523 million yuan due to rising costs and intensified competition [5]. - The company has been focusing on optimizing its operational strategies and enhancing innovation to address the pressure on net profits while consolidating traditional business areas [5]. Group 4: Strategic Focus - China Oil Engineering aims to strengthen its traditional business in oil and gas while accelerating its expansion into emerging sectors such as LNG, marine engineering, and green low-carbon industries [6]. - The company is also transitioning its traditional refining and chemical business towards higher-end services, with new contracts in this area amounting to 14.621 billion yuan in the first half of 2025, accounting for 19.92% of total new contracts [5].