Petrochemical machinery won international orders in a row, and overseas revenue accounted for 10.68%, accelerating the expansion of the market

Yangtze River Business Daily News ● Yangtze River Business Daily reporter Li Jing

Profitability has been steadily improved, and petrochemical machinery (000852. SZ) to accelerate the pace of overseas market expansion.

According to the official WeChat news of petrochemical machinery, recently, the company's steel pipe company has frequently reported good news in market development, winning the bid for the Saudi Arabian seawater desalination project and the natural gas pipeline project of Myanmar Oil and Gas Company. In addition, the company's three-machine branch has also received a contract for three sets of gas compressors from Nigeria, which is the first time that natural gas compressors for petrochemical machinery have been exported to Nigeria.

In recent years, petrochemical machinery has continued to increase its market strength, strictly control costs and expenses, and the orders and revenues of major products have increased significantly. In 2023, the company's revenue and net profit will increase year-on-year, and the net profit after deducting non-attributable to the parent company will increase by 110.74% to 52.2646 million yuan, a record high. Among them, the company increased its efforts to develop overseas markets, and ordered 1.1 billion yuan in the international market, doubling year-on-year.

Petrochemical Machinery said at the performance briefing held a few days ago that the company will continue to actively deploy overseas markets in the future and further increase the proportion of business in the international market.

Overseas markets are frequently reported

According to public information, the predecessor of petrochemical machinery was established in 1973 Jianghan drill bit factory, in 2012 by Sinopec to the petroleum machinery manufacturing business integration and reorganization, and in 2015 listed on the Shenzhen Stock Exchange, to achieve the integration of petroleum machinery industrial layout.

As one of the first batch of scientific and technological innovation enterprises and the only oil and gas equipment R&D, manufacturing and professional technical service enterprise under Sinopec Group, the main business of petrochemical machinery covers three major fields: petroleum engineering, oil and gas development, and oil and gas gathering and transportation, covering onshore and offshore oil and gas fields.

In recent years, petrochemical machinery has benchmarked advanced pipe enterprises at home and abroad, and has invested nearly 200 million yuan to implement the technical upgrading and transformation of the production line to improve the technical performance of the equipment. At the same time, the company's steel pipe business actively enters the international market, and the products of the steel pipe branch have been exported to more than 30 countries and regions such as Saudi Arabia, Kuwait, Chile, and the Philippines, and the new orders have exceeded 3 billion yuan in the past three years.

Recently, the steel pipe branch has won two international market businesses, winning the bid for the Saudi Arabian seawater desalination project and the Myanmar oil and gas company natural gas pipeline project. Among them, the Saudi Arabia project will provide services for the construction of local urban water pipelines; The Myanmar project is the third time that the steel pipe branch has received a project order from the Myanmar Oil and Gas Company (MOGE) in 2020 and 2023.

In the face of unfavorable situations such as the slowdown of the domestic oil and gas pipeline market, petrochemical machinery continues to do a good job in expanding the market externally, increases the development of high value-added products internally, and breaks through the encirclement in adversity to seize the market and improve efficiency. From the perspective of revenue composition, in 2023, petrochemical machinery will achieve overseas revenue of 897 million yuan, accounting for 10.68% of revenue, a year-on-year increase of 78.25%, and a gross profit margin of 18.35%, an increase of 4.25 percentage points.

The relevant person in charge of petrochemical machinery pointed out at the performance briefing that due to multiple factors, the company's overseas business revenue accounted for a relatively low proportion in recent years. In 2023, the company will increase its efforts to develop overseas markets, and the international market will achieve orders of 1.1 billion yuan, doubling year-on-year. In the future, the company will continue to actively deploy overseas markets and further increase the proportion of business in the international market.

Petrochemical Machinery said that overseas markets have always been an indispensable and important market for the company's development. With the effective adjustment of the company's international business, the development efficiency and business of overseas markets have gradually recovered and been greatly improved. While stabilizing the North American market, the company will also actively develop the Middle East, Southeast Asia market and Russian market.

Accelerate the creation of the second curve of hydrogen energy

According to the 2023 annual report, petrochemical machinery achieved operating income of 8.398 billion yuan last year, a year-on-year increase of 8.33%; the net profit attributable to the parent company was 91.9601 million yuan, a year-on-year increase of 76.59%; The non-net profit was 52.2646 million yuan, a year-on-year increase of 110.74%. Among them, the deduction of non-net profit is on the basis of a nearly 5-fold increase in the previous year, and it has achieved rapid growth again.

The Yangtze River Business Daily reporter noticed that since 2015, the non-net profit of petrochemical machinery has been in a state of loss for 6 consecutive years, until 2021 to turn losses into profits and achieve three consecutive rises. From 2021 to 2022, the company's non-net profit was 4.2799 million yuan and 24.304 million yuan respectively, and its profitability continued to increase.

Petrochemical Machinery pointed out in its annual report that in 2023, the company will closely follow the theme of high-quality development, deeply integrate into and serve energy security, vigorously promote key tasks such as core technology research, operation efficiency, and new business cultivation, and achieve orders of 9.5 billion yuan, a year-on-year increase of 18%, and a total profit of 120 million yuan, a year-on-year increase of 57%.

From the perspective of market distribution, Sinopec market achieved orders of 4.1 billion yuan, accounting for 43%; China's petroleum market won the bid for a two-year large-scale procurement framework of 400 million yuan for diamond drill bits, and the order of workover rigs exceeded 300 million yuan; CNOOC won the bid for a three-year screw drilling tool of 200 million yuan and a three-year high-frequency welded pipe of 30,000 tons of large-scale procurement framework. In addition, the orders for five special services exceeded 3 billion yuan for the first time, an increase of 30%.

It is worth noting that among the four emerging industries, hydrogen energy equipment has achieved an order of 63 million yuan, a year-on-year increase of 209%. In 2023, Petrochemical Machinery will serve and build 8 hydrogen refueling stations in the hydrogen refueling market, with a cumulative hydrogen refueling capacity of more than 2,000kg; In the hydrogen production market, it has achieved zero breakthroughs in the performance of PEM hydrogen production and alkaline water hydrogen production; In the hydrogen supply market, it won the bid for large-displacement diaphragm hydrogen compressor, laying a solid foundation for the expansion of the Wanfang-level hydrogen supply center in the later stage.

At present, Sinopec Group, the controlling shareholder of Sinopec Machinery, implements the clean energy strategy, and Sinopec, a subsidiary of Sinopec, is the largest hydrogen producer, with an annual production of about 3.9 million tons of hydrogen.

In terms of hydrogen energy business, Petrochemical Machinery closely follows the development strategy of the controlling shareholder and provides users with key equipment products, technologies and services. The company has hydrogen refueling stations, hydrogen production and hydrogenation integration, large-displacement filling, megawatt-level PEM hydrogen production, green electricity alkaline water hydrogen production, on-board hydrogen supply system and other solution service capabilities, core products include serialized hydrogen compressors, hydrogen refueling machines, hydrogen unloading columns, etc., and at the same time provide integrated technical services from hydrogen energy equipment to the cloud. The company plans to accelerate the cultivation of hydrogen energy business and build it into a new benefit growth point.

While building the "second curve" of hydrogen energy, petrochemical machinery has continued to increase research and development in recent years, and from 2021 to 2023, the company has invested 276 million yuan, 311 million yuan, and 376 million yuan in research and development expenses respectively.

In 2023, the company was awarded the title of "Sinopec Hydrogen Energy Equipment Manufacturing Base", and built the first 150MPa high-pressure gas equipment comprehensive test center in China, automatic drilling and repair equipment test platform and other scientific research facilities, and developed the world's largest continuous full-load 8000 electric fracturing equipment with the world's largest single machine power, and the world's strongest 175MPa large-bore fracturing pipe with the world's strongest pressure-bearing capacity, and obtained 128 patents.