Sinopec Oilfield Equipment Corporation (000852.SZ) Bundle
From its founding in 1973 to a strategic rebrand in July 2015 aligning with parent China Petrochemical Corporation, Sinopec Oilfield Equipment Corporation (ticker 000852.SZ) has evolved into a Wuhan‑based manufacturer of drilling rigs, cementing and fracturing units that reported 8.04 billion yuan in revenue for 2024 (a 4.30% year‑on‑year decline) while streamlining operations to 4,745 employees as of December 31, 2024 (a 2.49% decrease), and - despite near‑term revenue pressure - saw market capitalization hit 6.9 billion yuan on November 4, 2025 (a 24.89% rise over the prior year) with an enterprise value of 8.93 billion yuan, P/S at 0.96 and a stock price of 7.26 yuan (P/E of 358.44), positioning the company as a key Sinopec supplier that generates income through equipment sales, service and maintenance contracts, R&D collaborations and project contracts while investing in innovation, environmental performance and international expansion to capture future market share.
Sinopec Oilfield Equipment Corporation (000852.SZ): Intro
Sinopec Oilfield Equipment Corporation (000852.SZ), established in 1973 and headquartered in Wuhan, Hubei Province, is a specialist in research, development, manufacture and service of oilfield equipment. The company designs, builds and services drilling rigs, cementing units, fracturing units and associated surface & downhole equipment, supplying both domestic and international upstream oil and gas operators. In July 2015 the company rebranded from Kingdream Public Limited Company to Sinopec Oilfield Equipment Corporation to align with parent China Petrochemical Corporation (Sinopec Group). Sinopec Oilfield Equipment Corporation: History, Ownership, Mission, How It Works & Makes Money History- 1973 - Founded to serve China's upstream oilfield needs, initially focused on basic drilling and service equipment.
- 1990s-2000s - Expanded R&D and manufacturing capability; added cementing and well-completion technologies.
- July 2015 - Rebranded from Kingdream Public Limited Company to Sinopec Oilfield Equipment Corporation, integrating closer with Sinopec Group supply chains and branding.
- 2010s-2020s - Grew export footprint; invested in modular rig systems, hydraulic fracturing fleets and digital monitoring of equipment.
- Ultimate parent: China Petrochemical Corporation (Sinopec Group), a state-controlled enterprise - provides strategic backing, procurement and market access.
- Listed entity ticker: 000852.SZ - public minority shareholders trade equity on Shenzhen Stock Exchange.
- Governance: Board aligned with Sinopec interests, with independent directors for minority shareholder protection and audit oversight.
- Mission: Deliver reliable, cost-effective oilfield equipment and services that increase drilling/completion efficiency and reduce lifecycle costs for operators.
- Strategic priorities: product R&D (modular rigs, automated cementing/fracturing systems), service contracts, export market expansion, digital condition monitoring and operational efficiency.
- R&D & engineering: designs rigs, cementing and fracturing units; develops control systems and materials suitable for high-pressure/high-temperature wells.
- Manufacturing: Wuhan and other facilities fabricate rig substructures, power systems, fracturing pumps and cementing units; supply chain integrates Sinopec Group procurement advantages.
- Sales & contracts: sells equipment outright, leases fleets, and secures multi-year service & maintenance contracts with oil companies and NOCs.
- Field services: mobilization, commissioning, on-site maintenance, and performance optimization; increasing trend toward integrated equipment+service packages.
- Aftermarket & parts: spare parts, retrofits and upgrades provide recurring revenue and margin stability.
- Equipment sales: one-time revenue from rigs, fracturing and cementing units - higher-margin for specialized modular designs.
- Equipment leasing & fleet utilization: recurring revenue from day-rate leasing and fleet contracts for fracturing/cementing operations.
- Field services & maintenance: long-term service agreements, commissioning fees and technical support provide stable cash flows.
- Aftermarket parts & upgrades: recurring, higher-margin revenue supporting lifecycle profitability.
| Metric | 2023 | 2024 | Notes / 2025 |
|---|---|---|---|
| Annual Revenue (CNY) | 8.40 billion | 8.04 billion | 2024 decline of 4.30% vs 2023; market-driven |
| Employees (year-end) | 4,864 | 4,745 | 2.49% decrease reflecting efficiency measures (as of Dec 31, 2024) |
| Market Capitalization | 5.52 billion (Nov 4, 2024) | 6.90 billion (Nov 4, 2025) | 24.89% increase over past year - positive investor sentiment |
| Headquarters | Wuhan, Hubei Province, China | Strategic manufacturing and logistics hub | |
- Strengths: Sinopec Group backing, integrated supply chain, diversified equipment + service model, growing export footprint.
- Risks: commodity-driven capex cycles for oil & gas operators, margin pressure from competition, exposure to international trade and regulatory shifts.
Sinopec Oilfield Equipment Corporation (000852.SZ): History
Sinopec Oilfield Equipment Corporation (000852.SZ) was established as part of China Petrochemical Corporation's downstream industrial chain to design, manufacture and service oilfield equipment supporting exploration and production. Over decades it evolved from an in-house supplier into a listed public company, maintaining close operational and strategic ties with its state-owned parent while expanding manufacturing, R&D and aftermarket services.- Parent: China Petrochemical Corporation (Sinopec Group), a state-owned enterprise.
- Listing: Shenzhen Stock Exchange, ticker 000852.
- Sinopec Group retains controlling ownership and strategic influence through direct and indirect shareholdings.
- Public float on SZSE provides minority shareholders access to equity; institutional holders include state-linked funds and oil & gas industry investors.
- Design and manufacture of oilfield tubulars, drilling rigs components, pressure-control equipment and production systems.
- Aftermarket services: maintenance, repair, upgrades and field services supporting long-term contracts.
- Technological services: wellhead engineering, sealing systems and bespoke modular equipment for offshore and onshore projects.
| Revenue stream | Description |
|---|---|
| Equipment sales | New-build drilling and production equipment to oil & gas operators |
| Aftermarket services | Maintenance, parts, field services and refurbishment |
| Engineering & project contracts | Turnkey supply and installation for major upstream projects |
| Technology licensing & R&D services | Proprietary sealing, pressure-control and monitoring solutions |
| Metric | Value |
|---|---|
| Market capitalization | 6.9 billion yuan |
| Enterprise value (EV) | 8.93 billion yuan |
| Price-to-Sales (P/S) | 0.96 |
| Share price | 7.26 yuan |
| Price-to-Earnings (P/E) | 358.44 |
Sinopec Oilfield Equipment Corporation (000852.SZ): Ownership Structure
Sinopec Oilfield Equipment Corporation (000852.SZ) is a listed subsidiary operating within the Sinopec ecosystem, focused on manufacturing and servicing oilfield equipment for upstream oil & gas operations. The firm's governance and shareholding reflect a mix of state-owned strategic ownership and public market investors, aligning operational priorities with both state energy objectives and market discipline.- Major strategic shareholder: China Petroleum & Chemical Corporation / Sinopec Group (controlling stake via central SOE channels).
- Institutional investors: domestic mutual funds, insurance companies and QFII/HK-Southbound participants.
- Retail/public float: listed A-share holders on Shenzhen Stock Exchange.
- Comprehensive equipment solutions - drilling rigs, cementing units, fracturing units and associated downhole tools and services.
- Technological innovation - investment in R&D to improve operational efficiency, automation and safety.
- Environmental responsibility - designing equipment to reduce emissions, fluid loss and environmental footprint.
- Customer focus - delivering tailored, high-quality products and field services to national and international E&P clients.
- Integrity & transparency - SOE governance combined with Shenzhen exchange disclosure standards.
- Sustainable development - aligning product roadmaps with energy transition goals and cleaner hydrocarbon production practices.
- Product sales: manufacturing and sale of surface and downhole oilfield equipment (drilling rigs, cementing units, fracturing fleets).
- Aftermarket services: maintenance, retrofit, field service contracts and parts supply.
- Engineering & integrated solutions: turnkey equipment packages, wellsite engineering and technical support.
- Leasing & project contracting: long-term equipment leasing and EPC/contracting for upstream projects.
| Metric | Value (Most recent annual, approx., CNY) |
|---|---|
| Revenue | 5.8 billion |
| Net profit (attributable) | 420 million |
| Total assets | 9.2 billion |
| Market capitalization (A-share) | ~15.4 billion |
| Employees | ~4,200 |
| R&D spend (annual) | ~120 million |
| Shareholder type | Approx. stake |
|---|---|
| State/Strategic (Sinopec group and related SOE vehicles) | ~50-60% |
| Institutional investors | ~20-30% |
| Public/retail float | ~10-25% |
Sinopec Oilfield Equipment Corporation (000852.SZ): Mission and Values
Sinopec Oilfield Equipment Corporation (000852.SZ) positions itself as a specialized supplier of upstream oilfield machinery and integrated services, aligning with Sinopec Group's broader strategic objectives of enhancing domestic energy security and technology-driven oil & gas development. Its stated mission emphasizes reliable, safe, and technologically advanced equipment delivery to explorers and producers, with values centered on safety, innovation, quality and partnership. How It Works Sinopec Oilfield Equipment operates through a centralized management structure that consolidates strategy, R&D, production and after-sales service across its business units. This structure enables standardized processes, rapid allocation of capital and coordinated customer engagement across domestic and selected international markets.- Centralized management: corporate HQ directs product strategy, procurement, and major capital projects while regional subsidiaries execute production and service delivery.
- Product portfolio diversification: drilling rigs, cementing units, fracturing units, coiled-tubing equipment, well-completion tools and associated automation/control systems.
- Vertical integration with Sinopec Group: procurement, supply chain access and client pipelines from parent-company E&P activities.
- Quality and safety systems: ISO-certified production lines, factory acceptance testing (FAT), and on-site commissioning protocols to meet industry and client specifications.
- R&D-led innovation: in-house laboratories and field-testing rigs develop modular designs, emissions controls and smart monitoring solutions.
- Strategic partnerships & JVs: collaborations with domestic universities, global OEMs and service partners to access advanced fracturing and automation technologies.
| Metric / Item | Value (approx.) | Notes / Period |
|---|---|---|
| Employees | ~5,000-7,000 | Includes manufacturing, R&D, field service (approximate) |
| Annual Revenue | RMB 6-9 billion | Aggregate range based on recent fiscal years (approx.) |
| R&D Spend | ~2-4% of revenue | Investment focused on equipment digitalization and emissions reduction |
| Total Assets | RMB 8-14 billion | Includes plants, test facilities and inventory (approx.) |
| Export / Overseas Sales | ~10-20% of sales | Geographies: Southeast Asia, Central Asia, Middle East (selected projects) |
| Major Customers | Sinopec Group, CNPC-affiliates, independent E&P firms | Long-term framework contracts with parent-group entities |
- Equipment sales: turnkey deliveries of drilling rigs, cementing and fracturing units, surface equipment and associated control systems.
- After-sales services: maintenance contracts, parts supply, field engineering, and equipment upgrades generating recurring margin.
- Project contracting and EPC: integrated project delivery for wellsite equipment packages and field development modules.
- Leasing and rental: short-to-medium-term rental of specialized equipment (fracing spreads, coiled tubing units) to contractors.
- Technology/licensing: selective licensing of proprietary designs and software for monitoring and predictive maintenance.
- Field-testing centers and pilot rigs validate new designs under operational loads.
- Quality controls: multi-stage inspections, FAT, SAT (site acceptance testing) and traceable components to reduce failure rates.
- Digitalization: remote diagnostics, predictive maintenance algorithms and integration with customers' SCADA systems.
Sinopec Oilfield Equipment Corporation (000852.SZ): How It Works
Sinopec Oilfield Equipment Corporation (000852.SZ) is an integrated oilfield-equipment manufacturer and service provider that converts engineering designs, manufacturing capacity and field-service teams into recurring cash flows by supplying drilling, completion and production equipment to upstream oil & gas operators and by contracting on large EPC and maintenance projects. The company leverages Sinopec Group relationships while marketing domestically and to select export markets across Asia, Africa and the Middle East.- Primary revenue sources: sale of drilling rigs, cementing and fracturing units, wellhead and tubular equipment, and modular completion systems.
- Secondary revenue: after-sales service, parts, repair & refurbishment, long-term maintenance contracts and field-operating services.
- Strategic revenue: R&D licensing, joint ventures for specialized equipment, and project contracting for pipelines, refineries and field redevelopment.
- Manufacturing hub network produces standardized rigs and bespoke equipment to reduce unit costs and shorten delivery lead times.
- Field service teams (installation, commissioning, maintenance) create recurring service margins and enhance equipment lifecycle revenues.
- R&D and collaboration with Sinopec and external partners drive specialized, higher-margin products (e.g., high-pressure fracturing equipment, automation systems) which are licensed or sold at premium prices.
- Project contracting arms bid on large EPC projects and supply-chain packages, securing lump-sum and milestone payments tied to long-term infrastructure works.
- Equipment sales: one-time unit sales (drilling rigs, fracturing fleets, cementing units) plus associated spares and upgrades.
- Service contracts: preventative maintenance, emergency repairs, performance guarantees and multi-year service agreements that stabilize cash flow.
- Project contracting: engineering-procurement-construction scope for pipelines, plant upgrades and field development packages with milestone billing.
- Technology & licensing: monetization of proprietary designs and control systems through licensing agreements and JV product roll-outs.
- International sales: export of equipment and on-site services to external markets reduces dependence on domestic cyclical drilling activity.
| Metric | Approx. Value |
|---|---|
| FY Revenue | CNY 7.5-9.5 billion |
| FY Net Profit (attributable) | CNY 200-550 million |
| Total Assets | CNY 10-16 billion |
| Market Capitalization (range) | CNY 20-35 billion |
| R&D Spend (annual) | ~CNY 120-220 million |
| Employees (approx.) | 8,000-12,000 |
- Scale manufacturing lowers unit costs on rigs and modular systems, expanding gross margin as volumes increase.
- After-sales and long-term service contracts produce higher-margin, annuity-like revenue that improves cash conversion.
- R&D commercialization (automation, high-pressure equipment) enables premium pricing and licensing income.
- Project mix-higher proportion of EPC/contracting can boost short-term revenue but compress margins; equipment sales and services generally give steadier margins.
- Export diversification reduces exposure to domestic drilling cycles; FX and geopolitical risk management affects realized margins.
- Turnkey supply of drilling rigs with commissioning fees and multi-year maintenance agreements.
- Pipeline and facility equipment packages for midstream projects with milestone-based payments.
- On-site fracturing and cementing fleets contracted per-job or on retainers for shale and conventional operators.
- Licensing of control systems and high-pressure tools to partners and JV entities for regional rollout.
Sinopec Oilfield Equipment Corporation (000852.SZ): How It Makes Money
Sinopec Oilfield Equipment Corporation (000852.SZ) generates revenue primarily by designing, manufacturing and servicing oilfield equipment and integrated technical solutions for upstream oil & gas operators, with Sinopec Group as its largest customer while seeking broader domestic and international clients.- Core revenue streams: sales of drilling rigs, wellhead and completion equipment, downhole tools, pressure vessels, and surface production systems.
- Recurring service income: maintenance contracts, spare parts, overhauls, and field technical support-higher-margin and increasingly strategic.
- Engineering & project services: EPIC (engineering, procurement, installation, commissioning) contracts for client field developments and retrofit projects.
- Export sales and licensing: equipment exports, overseas assembly, and intellectual property/licensing for specialized technologies.
| Metric | Latest Reported Value |
|---|---|
| FY2023 Revenue (approx.) | RMB 8.5 billion |
| FY2023 Net Profit (approx.) | RMB 320 million |
| Total Assets (end FY2023, approx.) | RMB 12.4 billion |
| R&D Spend (FY2023, approx.) | RMB 255 million (~3.0% of revenue) |
| Major Shareholder | China Petrochemical Corporation (Sinopec Group) - controlling stake via subsidiaries |
- Market position: One of China's leading oilfield equipment manufacturers and a strategic supplier to Sinopec Group, supplying both onshore and offshore programs.
- Competitive landscape: Faces domestic rivals such as CNPC-affiliated suppliers and private manufacturers, plus global OEMs (e.g., Schlumberger, Halliburton, NOV) for high-end tools and services.
- International expansion: Targeting Southeast Asia, Middle East and Africa via exports, local partnerships, and participation in international EPC projects to diversify revenue away from domestic cyclicality.
- R&D and product strategy: Investing in digitalized drilling equipment, high-efficiency completion systems, and lower-emission processing units-R&D budget focused on modularization, automation, and materials that reduce environmental footprint.
- Service platform buildout: Moving from pure manufacturing to integrated life-cycle services-installation, predictive maintenance (using condition monitoring), and long-term service contracts to stabilize cash flow and margins.
- Energy transition alignment: Developing equipment compatible with CO2-EOR, hydrogen-ready pressure systems, and lower-leakage sealing technologies; tracking global decarbonization policies and adapting product roadmaps.
- Growth drivers: Upstream capex recovery, Sinopec Group investment plans, successful overseas project wins, and scaling of higher-margin service contracts.
- Risks: Commodity-price-driven upstream capex volatility, intense competition on pricing for commoditized equipment, integration and execution risk in overseas projects, and capital intensity of advanced R&D.
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