SSC(SH:600871) 光大证券研究·2025-09-27 00:04Core Viewpoint - The company has signed a significant contract with Total Energy for the NWP project in Iraq, marking a major breakthrough in its overseas market expansion and collaboration with international energy giants [3][4]. Group 1: Contract Details - The company’s wholly-owned subsidiary signed a fixed-price contract worth $359 million (approximately RMB 2.553 billion) for the NWP project, which includes design, procurement, supply, construction, and trial operation [3][4]. - The contract represents 3.15% of the company's projected revenue for 2024 under Chinese accounting standards, with an expected mechanical completion date of March 31, 2029 [4]. Group 2: Overseas Market Expansion - The company has significantly increased its engineering service capabilities, achieving a 71.8% year-on-year growth in new contract value in overseas markets, totaling RMB 19.6 billion in the first half of 2025 [5]. - In Saudi Arabia, the company is actively participating in bidding for unconventional fracturing enhancement services for Saudi Aramco, while in Kuwait, it has secured contracts with Kuwait Oil Company for various drilling projects [5]. Group 3: Industry Outlook - The global upstream exploration and development expenditure is projected to be around $600 billion in 2025, with a slight year-on-year decrease of 4%, while domestic capital expenditure plans from the "three oil giants" are expected to decline by approximately 6% compared to 2024 [6]. - Despite these challenges, the overall high-level capital expenditure in the global upstream sector is expected to benefit the oil service industry, providing more service opportunities for the company and potential for continued revenue growth [6].