Core Insights - The company reported a decline in main revenue and net profit for the first half of 2025, with main revenue at 11.318 billion yuan, down 15.72% year-on-year, and net profit attributable to shareholders at 1.098 billion yuan, down 8.21% year-on-year [1] - Despite the decline in revenue, the company saw an increase in non-recurring net profit, which reached 960 million yuan, up 14.41% year-on-year [1] Financial Performance - In Q2 2025, the company's main revenue was 6.222 billion yuan, a decrease of 19.8% year-on-year, while net profit attributable to shareholders was 557 million yuan, down 22.74% year-on-year [1] - The company's gross profit margin for the first half of 2025 was 16.25%, an increase of 5.43 percentage points year-on-year, marking the highest level since 2017 [2] - The net profit margin for the first half of 2025 reached 9.93%, up 0.8 percentage points year-on-year, the highest since 2016 [2] Operational Insights - The company faced operational challenges due to declining oil prices and delivery schedules, completing fewer construction projects in both land and offshore categories compared to the previous year [2] - The total market contract amount for the first half of 2025 was 12.068 billion yuan, a decrease of 3.59% year-on-year, but the backlog of orders stood at approximately 40.7 billion yuan, an increase of 4.90% year-on-year, ensuring future workload [3] Industry Outlook - The potential for offshore oil and gas resources remains significant, with the company expected to benefit from ongoing projects by China National Offshore Oil Corporation (CNOOC) [3] - The government’s focus on "deep-sea technology" in its 2025 work report indicates new opportunities for development in deep-sea resource exploration and related sectors, which could drive growth for the company [4] - The projected earnings per share (EPS) for 2025-2027 are estimated at 0.54 yuan, 0.60 yuan, and 0.65 yuan, with corresponding price-to-earnings (PE) ratios indicating a favorable investment outlook [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a 2025 semi-annual revenue of 11.318 billion yuan, a year-on-year decrease of 15.72%, while the net profit attributable to shareholders was 1.098 billion yuan, down 8.21%. However, the net profit excluding non-recurring items increased by 14.41% to 960 million yuan [2][6] - In Q2 2025, the company's revenue was 6.222 billion yuan, a decline of 19.8% year-on-year, with a net profit of 557 million yuan, down 22.74%. The quarterly net profit excluding non-recurring items rose by 9.99% to 483 million yuan [2][6] - The company's gross profit margin for Q2 2025 reached its highest level since 2020, with a sales gross margin of 16.33% and a net profit margin of 9.93%, indicating improved profitability [12] Summary by Sections Financial Performance - The company experienced a decline in overall workload due to falling oil prices and delivery schedules, completing fewer land constructions and installations compared to the previous year [12] - The company achieved a market contract amount of 12.068 billion yuan in the first half of 2025, a decrease of 3.59% year-on-year, but the order backlog remains robust at approximately 40.7 billion yuan, up 4.90% year-on-year [12] Market Outlook - The potential of marine oil and gas resources is significant, with the company expected to benefit from CNOOC's capital expenditure plans, which are projected to remain stable at 125-135 billion yuan for 2025 [12] - The government’s focus on "deep-sea technology" is anticipated to create new development opportunities for the company, particularly in deep-sea resource development and equipment manufacturing [12] Earnings Forecast - The expected EPS for 2025-2027 is projected to be 0.54 yuan, 0.60 yuan, and 0.65 yuan respectively, with corresponding PE ratios of 10.62X, 9.65X, and 8.86X based on the closing price on August 15, 2025 [12]

Core Insights - The DPPB platform of the Huizhou 25-8 project, constructed by CNOOC's Offshore Oil Engineering Company, has completed its upper block assembly and is set to become the largest water injection development platform in the eastern South China Sea [1][2] - The platform features advanced green low-carbon technologies, including waste gas and heat recovery systems, which are expected to reduce carbon dioxide emissions by approximately 11,800 tons annually [1] - The construction process involved innovative assembly techniques that significantly improved efficiency, completing the main structure in 80 days and installing over 6,000 pipelines and 280,000 meters of cables within 9.5 months [2] Project Overview - The DPPB platform consists of a jacket and an upper block, with the upper block weighing around 14,370 tons and measuring 81 meters in length, 44.5 meters in width, and 81.2 meters in height [1] - The project aims to enhance oil recovery rates and extend the lifespan of the Huizhou 25-8 oil field, while also serving as a logistics and power transmission hub for the surrounding oil fields [2] Technological Advancements - The platform incorporates a range of functions, including drilling, intelligent oil extraction, and comprehensive oil-gas-water treatment [1] - The use of TMCP high-strength steel in the construction process has led to a reduction in emissions during both metallurgical and processing phases [1]

Group 1 - The successful installation of the Huizhou 25-8DPPB platform's jacket marks a significant advancement in China's deepwater jacket installation technology, enhancing the country's offshore oil and gas equipment manufacturing capabilities and ensuring energy security [1][2] - The Huizhou 25-8 oil field is located approximately 120 kilometers southeast of Shenzhen, with a water depth of about 102 meters. The new platform integrates oil, gas, water treatment, and power generation functions, optimizing resource utilization [1] - The jacket structure consists of 8 legs and 12 skirt piles, standing at a total height of 116 meters, equivalent to a 40-story building, with a base area of 4,800 square meters, comparable to 12 standard basketball courts, and weighing around 12,000 tons, equivalent to 10,000 family cars [1] Group 2 - The jacket platform is the most widely used offshore natural gas production facility globally, consisting of a lower jacket and upper production facilities, serving as the foundation for supporting the massive structure of offshore oil and gas platforms [2] - The installation process faced challenges due to frequent typhoons and strong waves in the sea area, increasing the complexity and risk of the operation [2] - The installation utilized sliding launch technology, leveraging the jacket's own weight and hydraulic jacks to smoothly slide the jacket from the "Ocean Oil 229" vessel into the sea, with real-time adjustments made for precise positioning [2] Group 3 - In recent years, China's large jacket installation capabilities have significantly improved, forming a comprehensive technical system covering design calculations, simulation, transportation, sliding launch, and precise positioning, ranking among the top globally in terms of construction scale, individual weight, and total tonnage [3] - Successful implementations of large jacket installations, such as Liwan 3-1 and the "Haiji" series, have provided solid support for the development of China's deepwater oil and gas resources [3]

Core Viewpoint - The recognition of CNOOC Engineering's case "Green Manufacturing System to Build Climate Resilience" highlights its leadership in promoting green transformation in the marine oil and gas equipment manufacturing industry, amidst challenges posed by climate change and stringent international supply chain standards [1][4]. Group 1: ESG Recognition and Challenges - CNOOC Engineering was selected as an excellent case in the 2025 ESG case collection activity, showcasing its outstanding performance in environmental, social, and governance (ESG) areas [1]. - The company faces challenges such as extreme weather risks and the need for innovation in development models due to increasing green trade barriers and strict international supply chain standards [1]. Group 2: Green Manufacturing System - CNOOC Engineering has developed a green manufacturing system that addresses traditional manufacturing issues like high energy consumption and emissions, focusing on a full lifecycle perspective [2]. - The system is driven by technological innovation and regulatory reform, enhancing resilience across the entire chain from design to operation [2]. Group 3: Technological Innovations - The company achieved significant breakthroughs, including the world's largest deep-sea Tension Leg Platform (TLP) for floating wind power, which can effectively control tilt within 1° during a Category 17 typhoon, reducing sea area usage by 90% compared to semi-submersible platforms [2]. - The "Haiji No. 2" deepwater jacket has a total height of 338.5 meters and an installation depth of 324 meters, setting an Asian installation record and demonstrating exceptional stability in extreme sea conditions [2]. Group 4: Clean Energy and Digital Management - CNOOC Engineering has established a dual-driven system of "clean energy + digital management," optimizing energy structure in East China through the Ningbo "Green Energy Port" project, which includes three 270,000 cubic meter LNG storage tanks [3]. - The company has implemented energy management systems and digital twin technology in multiple locations, enhancing real-time monitoring for carbon emission management [3]. Group 5: Industry Leadership and Collaboration - CNOOC Engineering plays a leading role in ecological co-construction, signing a strategic cooperation agreement with Shell Group in areas like renewable energy and green supply chains [3]. - The company has led the development of green supply chain standards, facilitating collaborative emission reductions among over 20 enterprises in the industry [3]. Group 6: Future Directions - CNOOC Engineering's transition from passive carbon reduction to leading transformation provides replicable experiences for energy and manufacturing sectors, contributing significantly to the implementation of corporate responsibilities in building a "Beautiful China" [4]. - The company aims to deepen its green manufacturing system and accelerate technological innovation and model upgrades to address climate change and promote sustainable industry development [4].