CNOOC Engineering (600583): Winning major international contracts is expected to further develop overseas markets

CNOOC Engineering (600583): Winning major international contracts is expected to further develop overseas markets

The company announced that its net profit attributable to its mother for the year 2018 was 7,977.

80,000 (YOY-83.

75%), in line with our expectations.

In 18 years, the company achieved operating income of 110.

52 billion (+7 compared with the same period last year).

80%), mainly from the increase in overall workload, of which the land construction business completed steel processing every 8th.

50% of the days for the installation and operation of ships at sea 1.

190,000, an increase of 70% in ten years.

The decline in net profit was mainly due to the slower oil price of the offshore oil and gas industry, and the global offshore oil and gas engineering service price level in 18 years was still low, and the company’s overall gross profit margin was 9.

3%, a decline of 10 per year.

9 units.

In terms of sub-sectors, the company’s performance mainly comes from the contribution of offshore engineering business, and the annual income of offshore engineering business increased by 61 in 18 years.

35% to 103.

3.6 billion, gross margin increased by 2.

27 up to 8.

94%, but converted to the completion of the Yamal project in 17 years, the LNG onshore construction business decreased in 18 years, and the annual income of non-marine engineering business replaced 83% to 6.

3 billion, gross margin decreased by 36.

47 up to 8.


The company achieved net exchange gains of 0 in 2018.

3.8 billion, a factor that reduces budgeted financial costs by 3.

820 billion.

The increase in domestic orders continued to benefit from the increase in capital expenditures of the parent company.

In 2018, the company achieved a market contract amount of about 175.

54 billion, of which 164 are domestic.

2.9 billion, an increase of 76% over the same period; the contracted value of overseas markets11.

2.5 billion, slightly higher than the same period last year10.

55 billion.

As of the end of 18 years, the outstanding orders were about 18.5 billion.

In 2018, the parent company CNOOC’s capital expenditure was 62.6 billion yuan, and the 19-year budget expenditure was 70-80 billion. CNOOC’s domestic orders promoted continuous growth.

Won major contracts in the international market, and constantly explore overseas markets.

On March 25, 2019, the company’s wholly-owned subsidiary Offshore Oil Engineering (Qingdao) Co., Ltd. and the Japanese company Fulu joint venture broke the contract for the construction of ground modules, with a contract value of about 50 billion.Another land module project undertaken is also the result of the company’s continuous strengthening of international market development.

In 18 years, the company has long-term offshore engineering long-term service agreement with Saudi Aramco International. The latest large-value contract signifies the company’s ability to be gradually recognized. We believe that the company is expected to rely on its core competitiveness to further enhance the visibility and 北京夜网 influence of the international market.With more international orders, the gross profit margin is also expected to increase with the saturation of orders.

Benefit from the recovery of the oil and gas industry and the prosperity of the LNG construction industry.

According to the Spears & Associates forecast, the global upstream oil and gas exploration and development investment will recover to USD 472 billion in 2019, an annual growth of 16%, and the company will benefit the industry’s prosperity.

At the same time, the bidding results of multiple large-scale LNG projects around the world will have a high probability of landing in 2019. The development potential of domestic and foreign LNG markets will usher in significant value-added in 2019, which will bring a significant 杭州桑拿网 increase in the demand for restructuring and construction, and the rapid development of LNG terminal business depends on brandsEffects and the overall budgetary capacity of the FPSO are expected to further open the market.

Investment Advice.

Considering the company’s overseas market breakthroughs but price recovery requires a process, we adjust for 2019?The 2020EPS forecast is zero.
22 yuan and 0.

36 yuan (0 before adjustment.

21 yuan and 0.

41 yuan), plus EPS forecast for 2021 is 0.

44 yuan, corresponding PE is 27 times, 17 times and 14, respectively, the company’s current PB is 1.

2 times.

As a leader in the offshore engineering industry, companies in this field have scarce targets for core competitiveness, have changed their ability to resist risks in the trough of the industry, and have a healthy financial position. The asset-liability ratio at the end of 18 was 24.

03%, optimistic about the company’s business recovery along with the industry, maintain “overweight” rating.