CNOOC Engineering (600583): Overseas companies seized large orders and accelerated internationalization

Home / CNOOC Engineering (600583): Overseas companies seized large orders and accelerated internationalization

CNOOC Engineering (600583): Overseas companies seized large orders and accelerated internationalization

Event: The company announced on the evening of October 16 that the company and McDermott formed a joint contract with Saudi Aramco (Saudi Arabian Petroleum Company, hereinafter referred to as “Saudi Aramco”). EPCI contract package 1 (Marjan GOSP)-4 南京夜网 Package1 contract), in which the scope of work of CNOOC Engineering is land construction, transportation and offshore installation of some platforms under the contract.

The total value of the two contracts is approximately $ 700 million.

Our point of view: (1) The number of major contracts with Saudi Aramco and its subsidiaries continues to increase. According to the announcement, the two contracts total US $ 700 million. Party A of the contract is Saudi Aramco ‘s overseas companies and Saudi Aramco.the company.

The contract work includes land construction and maritime installation. The module will be constructed at the company’s Qingdao site, and the jacket will be constructed at the Zhuhai site.

The project is scheduled to start construction in the second quarter of 2020 and be completed in the fourth quarter of 2022.

The contract stipulates that June 18, 2019 (that is, the date of signing the letter of intent to win the bid) will take effect and be valid until the contract performance is completed.

The implementation of this project will improve the company’s site and ship utilization, cultivate rich Saudi Aramco standards talents, deepen cooperation with Saudi Aramco, accumulate more experience in project implementation in the Middle East, and enhance the company’s international capabilities.

It is estimated that the project’s revenue in 2019 will account for about 2% of the contract amount, mainly for the income generated from preliminary preparations such as mobilization.

(2) The capital expenditure of the upstream oil and gas industry has increased, and the company’s orders on hand have grown rapidly. It is said that it has shifted to implement an energy security strategy. The capital expenditures of the three major domestic oil companies have increased. As a consolidated subsidiary of CNOOC, the company helps to benefit, combined with global oilThe industry is recovering, and the amount of overseas investment has also increased. The company’s abundant orders on hand are expected to drive performance growth.

According to the semi-annual report, excluding the new overseas multinational orders, the company achieved a market contract amount of 112.

3.8 billion, of which the contracted value of overseas markets was 94.

USD 5.8 billion, which mainly includes the contract of the Japanese Fuluo LNG module and the EPCI contract of Marjan’s foundry production development project.

Earnings forecast and investment 南宁桑拿 advice: Switch the business of the oil service industry and the company has obtained major orders. We believe that the company’s performance will gradually pick up. We maintain our earnings forecast for the company and expect net profit for 2019-2021 to be 1.

05/7.

38/8.

59 trillion, EPS is 0.

02/0.

17/0.

19 yuan, maintaining the “overweight” level.

Risk factors: Oil price fluctuation risk, exchange rate risk, overseas market risk, engineering project risk.

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