CPECC H1 Revenue Hits RMB38.4 billion, New Contracts Reach Record RMB92.5 billion

On August 27, China Petroleum Engineering Co. , Ltd. (CPECC) disclosed its semi-annual report for 2026. In the first half of the year, the company achieved operating revenue of RMB38.427 billion, up 5.9% year-on-year; net profit attributable to shareholders of the listed company was RMB365 million; net cash flow from operating activities was RMB4.024 billion, turning positive compared with the same period in 2025. Profit came under pressure due to factors including higher execution costs on some projects driven by Middle East tensions, losses in the pipeline and storage engineering segment, and exchange rate fluctuations. In the first half, new contract signings totaled RMB92.471 billion, up 25.98% year-on-year, a record high. Among this, new contracts in the international market reached RMB40.192 billion, up 73.37% year-on-year; the ground engineering contract for the fourth phase of the Galkynysh Gas Field in Turkmenistan, a turnkey project for 10 billion cubic meters per year of commercial gas capacity, amounted to RMB31.649 billion. New contracts in emerging businesses and future industries totaled RMB22.051 billion, including 37 projects each with a contract value exceeding RMB100 million, such as the China Petroleum Jilin Petrochemical Company thousand-ton high-performance carbon fiber project, the North China Petrochemical Company 100,000-ton-per-year sustainable aviation fuel (SAF) project, and the Shaanxi Yulin Energy Chemical New Materials Co. epoxy resin integration project. As of the end of the reporting period, the company's contracts in hand exceeded RMB200 billion. By segment, oil and gas field surface engineering achieved revenue of RMB13.799 billion, refining and chemical engineering achieved revenue of RMB12.209 billion, and pipeline and storage engineering achieved revenue of RMB9.448 billion. These three traditional business segments together contributed RMB35.456 billion in revenue, accounting for over 90% of total revenue. Revenue from high-value-added businesses such as engineering design accounted for 9.38% of total revenue, up 7 percentage points year-on-year. Net cash flow from operating activities in the first half was RMB4.024 billion, compared with -RMB1.533 billion in the same period of 2025, an increase of RMB5.557 billion year-on-year. The company stated that this was partly due to accelerated project settlement and collections, and partly due to advance receipts from projects such as the fourth phase of the Galkynysh Gas Field in Turkmenistan. Cash received from sales of goods and provision of services was RMB49.151 billion, up RMB10.695 billion year-on-year; credit impairment losses were RMB40.4658 million, down 64.25% year-on-year. During the reporting period, the company's revenue from emerging businesses such as new energy and digital transformation grew by more than 70% year-on-year. In the new energy sector, the company is advancing the China Petroleum Xinjiang Oilfield New Energy Company 2.64 million kilowatt new energy and supporting coal power and carbon capture integration new energy (Phase I) project. In digital transformation, the Beidou large-scale application Phase II project and the CPECC digital construction operation management platform development and service project have both entered the substantive advancement stage. In the semi-annual report, the company's management stated that in the second half of the year, it will continue to anchor the vision of 'building a world-class energy and chemical engineering comprehensive service provider with enduring success,' and coordinate special actions on operational quality improvement, market development, technological innovation, reform and governance, and risk prevention and control.