COOEC(SH:600583) EBSCN·2024-10-28 07:11Investment Rating - The report maintains a rating of "Accumulate" for the company [2] Core Views - The company achieved a year-on-year growth of 27% in net profit attributable to shareholders in the first three quarters of 2024, despite a slight decline in total revenue [3][4] - The company is expected to benefit from the ongoing high demand in the oil and gas engineering sector, driven by increased capital expenditure from its parent company, China National Offshore Oil Corporation (CNOOC) [8][9] Summary by Sections Financial Performance - In the first three quarters of 2024, the company reported total revenue of 20.4 billion yuan, a decrease of 2.56% year-on-year, while net profit attributable to shareholders reached 1.745 billion yuan, an increase of 27% [3][4] - The third quarter alone saw a revenue of 7 billion yuan, up 7.29% year-on-year, and a net profit of 548 million yuan, up 41% year-on-year [3] Operational Highlights - The company completed a steel processing volume of 356,000 tons in the first three quarters, a year-on-year increase of 4.7%, and is set to enter a peak production phase with 35 projects expected to be completed in the second half of 2024 [5] - The company has a robust order backlog of approximately 36.5 billion yuan, providing strong support for ongoing operations [6] Market Development - The company signed new contracts worth 16.562 billion yuan in the first three quarters, a decrease of 37% year-on-year, with domestic contracts accounting for 11.236 billion yuan and international contracts 5.326 billion yuan [6] - The company is making significant strides in its international market development, with overseas contracts representing 32% of total new contracts signed [6][7] Industry Outlook - The global oil demand is projected to continue growing in 2024, with upstream exploration and development capital expenditures expected to exceed 600 billion USD, marking a 5.7% increase from 2023 [8] - CNOOC's capital expenditure budget for 2024 is set between 125 billion to 135 billion yuan, indicating continued investment in the oil and gas sector [8][9]