CNOOC Engineering Chairman Wang Zhangling: Company Revenue to Reach 60 Billion Yuan by 2035

Our reporters: Gui Xiaosun and Li Haoyue

On March 24, China National Offshore Oil Corporation (CNOOC) Engineering held an earnings presentation. They provided detailed responses to core issues such as market value management, overseas business, and plans during the 14th Five-Year Plan, demonstrating a firm commitment to navigating industry changes and focusing on high-quality development.

The company’s 2025 annual report shows that during the reporting period, CNOOC Engineering achieved a contract value of 48.849 billion yuan, a year-on-year increase of 61.51%; revenue was 27.163 billion yuan, down 9.32% year-on-year; net profit attributable to shareholders was 2.084 billion yuan, a decrease of 3.56%.

At the earnings presentation, Chairman Wang Zhangling responded to questions from Securities Daily, interpreting the development blueprint for the 14th Five-Year Plan. “CNOOC Engineering adheres to a single blueprint, with overall planning aligned with the ‘14th Five-Year Plan’ and the vision for 2035. It also benchmarks the development requirements for 2035, focusing on key goals: by 2035, the company’s revenue should reach 60 billion yuan; the income ratio among traditional oil and gas, emerging industries, and overseas business should be 1:1:1; and external revenue should account for 50% by 2030. These are specific quantitative targets,” Wang said.

While setting clear quantitative indicators for high-quality development, the company’s business model is also evolving. The annual report shows that the company’s business structure is accelerating its transition toward low-carbon, green, and full-industry integration; production models are shifting toward standardization and digital intelligence; and business models are upgrading from “project-driven” to “product-driven,” expanding from “single product” to “series product” offerings.

Cai Huaiyu, CFO and Secretary of the Board, explained in response to Securities Daily that the shift from project-driven to product-driven is based on industry trends, market competition, and strategic choices for high-quality development. The results of this transformation are being continuously released.

Regarding market value management, which investors pay close attention to, Cai Huaiyu stated that the company highly values market value management, focusing on enhancing intrinsic value, continuously strengthening core operations, and improving profitability and competitiveness—fundamentals for stable market value. This year, the company will strictly implement regulatory requirements, optimize existing mechanisms, and refine annual measures based on industry and company realities. Any new policies or plans will be disclosed in a timely manner as required.

From the communication at the earnings presentation, attention to new energy and overseas business development was also high.

Wang Zhangling explained to investors that by 2025, the company’s new energy revenue will be relatively small, mainly due to factors related to the development of the domestic new energy industry. The company will continue to increase efforts in expanding new energy business. Among these, deep-sea wind power is a core development direction. The company is actively involved and has completed the construction of semi-submersible platforms for demonstration offshore wind farms. Moving forward, leveraging its technological and equipment advantages in marine engineering, the company will continue to accumulate experience in deep-sea wind projects and promote business implementation.

Additionally, the annual report shows that, regionally, domestic revenue and costs have decreased year-on-year, but domestic oil and gas project gross profit margins have significantly increased compared to last year, mainly due to the company’s ongoing efforts to strengthen operational management, deepen cost reduction, improve quality, and efficiency. High-quality delivery of domestic oil and gas projects has also enhanced profitability. The company’s international strategy has entered a substantive phase, with overseas order backlog reaching peak execution. Overseas engineering revenue increased by 82.59% year-on-year; meanwhile, the company has invested in multiple owned vessels for overseas projects, leading to a phased increase in fixed costs and a 2.76 percentage point decline in gross profit margin, but overall operational efficiency continues to improve steadily.

Cai Huaiyu explained that the company plans to improve overseas gross profit margins through two main approaches: first, by advancing the implementation of long-term overseas orders to realize scale effects; second, by enhancing equipment and resource utilization efficiency during project execution through secondary operations, gradually spreading fixed costs.

(Editor: Sun Qian)