Core Viewpoint - China Oil Engineering has secured a significant contract for the Iraq seawater pipeline project, valued at approximately $2.524 billion (around 18.032 billion RMB), which is expected to positively impact the company's revenue and profit over the next 4-5 years [2][4][6]. Group 1: Contract Details - The contract for the Iraq seawater pipeline project includes the construction of seawater treatment facilities and associated pipelines, with a contract duration of 54 months [2][4]. - The project is currently in the bidding stage, and the formal contract signing is subject to uncertainty [4][5]. - The company has a history of securing large overseas contracts, including a $1.601 billion (approximately 11.538 billion RMB) contract for the Iraq Atawi gas processing plant project [6]. Group 2: Financial Performance - As of the first quarter of 2025, the company's contract liabilities reached 30.845 billion RMB, marking a historical high and a year-on-year increase of 19.82% [3][10]. - The company aims to achieve new contract amounts of 130 billion RMB and operating revenue of 86.5 billion RMB in 2025, reflecting a strategy of "seeking progress while maintaining stability" amid market volatility [3][10]. - The company reported revenues of 83.59 billion RMB, 80.343 billion RMB, and 85.917 billion RMB for the years 2022 to 2024, with net profits of 7.24 billion RMB, 7.46 billion RMB, and 6.35 billion RMB respectively [8]. Group 3: Market Strategy - The company is focusing on high-end market segments and has been expanding its cooperation with international oil companies and national oil companies, including TotalEnergies and Abu Dhabi National Oil Company [7][9]. - In 2024, the company secured new contracts worth 32.983 billion RMB in high-end markets, a year-on-year increase of 46.21% [9]. - The company is also enhancing its business structure by shifting towards high-value services such as design, consulting, and project management [7].

Core Viewpoint - China National Petroleum Engineering Company (CNPC Engineering) has signed an EPSCC contract worth approximately 16.01 billion USD (about 115.38 billion RMB) with TotalEnergies for the Atawi Gas Processing Plant project in Iraq, marking a significant achievement in securing contracts in the Middle East [1][3]. Group 1: Contract Details - The Atawi GPP project involves the construction of a gas processing facility with a capacity of 320 million standard cubic feet per day (MMSCFD) [3]. - This contract is the largest among three Middle Eastern orders announced by CNPC Engineering this year, with only this contract being formally signed [1][3]. Group 2: Financial Performance - CNPC Engineering has reported a year-on-year revenue increase of 6.94% for 2024 and 16.26% for the first quarter of 2025, but the net profit attributable to shareholders has decreased by 14.80% and 19.82% respectively [5][8]. - The company has faced challenges with "increasing revenue but decreasing profit," attributed to intensified industry competition and issues with overseas project claims [5][8]. Group 3: Market Impact - Following the announcement of the contract, CNPC Engineering's A-share price rose by 5.68%, with a total market capitalization of 18.7 billion RMB as of June 13 [8].

Group 1 - The company announced that its wholly-owned subsidiary, China Petroleum Engineering Construction Co., has signed an EPSCC contract with TotalEnergies for the gas processing plant project at the Atawi oil field in Iraq, with a contract value of $1.601 billion (approximately 11.538 billion RMB) [1] - The execution of this contract will not have a significant impact on the company's total assets, net assets, and net profit for the current year, but it is expected to positively influence the company's operating income and total profit over the next 4-5 years [1]