Offshore Oil Engineering Co.,Ltd (600583.SS) Bundle
Born in 2000 as a CNOOC subsidiary and debuting on the Shanghai exchange under 600583 in February 2002, Offshore Oil Engineering Co., Ltd. (COOEC) has evolved into a leading Asia‑Pacific EPCI contractor-diversifying from offshore oil and gas into LNG, wind power, refining and chemicals-and in 2024 delivered an operating income of RMB 29.954 billion and a nine‑year high net profit attributable to shareholders of RMB 2.161 billion while securing RMB 30.244 billion in new contracts and carrying an order backlog near RMB 40 billion; with CNOOC holding a controlling stake of 55.33% as of April 2025 (and committing to increase holdings by RMB 300-500 million), a workforce of 9,824 as of December 2024, a market capitalization of about RMB 24.45 billion (Oct 21, 2025), an enterprise value of RMB 10.25 billion, a Q3 2025 backlog reported at RMB 59.5 billion, record overseas wins of RMB 29.34 billion, recognition on ENR's Top 250 lists, 16 industry awards, and shareholder returns exemplified by a proposed cash dividend of RMB 2.01 per 10 shares (41.12% of attributable net profit), COOEC operates across design, procurement, construction, offshore installation, commissioning and maintenance, manufactures steel structures, pressure vessels and pipelines, sells electric and instrumentation automation products, provides testing and technical services, and monetizes these capabilities through domestic and international contracting, exports, and diversified project revenue streams
Offshore Oil Engineering Co.,Ltd (600583.SS): Intro
Offshore Oil Engineering Co.,Ltd (600583.SS) is a Shanghai-listed engineering, procurement, construction and installation (EPCI) contractor primarily serving offshore oil & gas, LNG, offshore wind, refining and chemical sectors. Established in 2000 as a subsidiary of China National Offshore Oil Corporation (CNOOC), COOEC has grown into one of the Asia‑Pacific region's leading offshore engineering firms with expanding international recognition.- Founded: 2000 (subsidiary of CNOOC)
- Shanghai Stock Exchange listing: February 2002 (Ticker: 600583)
- ENR Top 250 International & Global Contractors: Listed in 2024 and 2025
History & Key Milestones
- 2000: Established to focus on offshore oil & gas development projects under CNOOC.
- Feb 2002: Public listing on Shanghai Stock Exchange (600583.SS).
- 2000s-2010s: Expanded core capabilities from platforms and pipelines to integrated EPCI projects.
- 2010s-2020s: Diversified into LNG, offshore wind foundations/installation, and downstream refining & chemical projects.
- 2024: Achieved best nine‑year performance with operating income and net profit peaks.
- 2025: Recognized on ENR Top 250 International and Top 250 Global Contractors for the second consecutive year.
Ownership & Corporate Position
- Parent: China National Offshore Oil Corporation (CNOOC) - strategic shareholder and source of core project pipeline.
- Public free float: Listed on SHSE (600583.SS) with institutional and retail investors participating in equity.
Mission & Strategic Focus
- Mission: Deliver integrated offshore and related energy infrastructure safely, efficiently and sustainably.
- Strategic focus areas:
- Core EPCI execution for offshore oil & gas projects
- Growing presence in LNG engineering and EPC
- Entry and scale-up in offshore wind installation and foundations
- Integrated refinery & chemical downstream EPC
How It Works - Capabilities & Business Model
- Integrated EPCI contractor model: engineering design, procurement, fabrication, transport and offshore installation.
- Project origination: strong internal pipeline from CNOOC plus competitive bids for third‑party oil majors and national oil companies.
- Execution assets: fabrication yards, specialized vessels and installation equipment, engineering teams and supply chain partners.
- Revenue recognition: milestone and progress billing on long‑term contracts; EPC turnkey payments and service contracts.
How It Makes Money - Revenue Streams
- EPCI project revenues - platforms, jackets, subsea pipelines, topsides.
- LNG EPC and modular LNG facility construction.
- Offshore wind foundations and installation services.
- Refining & chemical EPC and retrofits.
- Aftermarket services, maintenance, and local fabrication.
Recent Financial & Contract Metrics (Selected)
| Metric | 2024 Amount (RMB) |
|---|---|
| Operating income (Revenue) | 29,954,000,000 |
| Net profit attributable to shareholders | 2,161,000,000 |
| Market contract amount secured (2024) | 30,244,000,000 |
| Order backlog (approx.) | 40,000,000,000 |
Commercial Strengths & Risks
- Strengths:
- Strategic backing and project flow from CNOOC
- Vertical integration across engineering, fabrication and installation
- Diversified end‑market exposure (oil & gas, LNG, offshore wind, refining/chemical)
- Risks:
- Project execution and cost overrun exposure on large EPCI contracts
- Commodity price and demand cyclicality affecting new award cadence
- Capital intensity for vessels and yards
Offshore Oil Engineering Co.,Ltd (600583.SS): History
Offshore Oil Engineering Co.,Ltd (600583.SS) traces its origins to state-led offshore exploration and platform construction initiatives, evolving into a specialized provider of offshore engineering, construction, installation and integrated services for the oil & gas sector. The company builds and operates fixed platforms, jackets, FPSOs, semi-submersibles, and provides EPC, fabrication and offshore installation services domestically and internationally.- Controlling shareholder: CNOOC held 55.33% of total equity as of April 2025.
- April 2025 commitment: CNOOC announced plans to increase holdings by no less than RMB 300 million and no more than RMB 500 million within 12 months.
- April 16, 2025: CNOOC increased holdings by 2,560,200 shares (~0.058% of total equity) as part of the planned increment.
- Workforce: 9,824 employees as of December 2024.
| Metric | Value | Reference Date |
|---|---|---|
| CNOOC ownership | 55.33% | April 2025 |
| Incremental investment plan by CNOOC | RMB 300-500 million | Announced April 2025 (12-month window) |
| Shares increased (one action) | 2,560,200 shares (~0.058% equity) | April 16, 2025 |
| Employees | 9,824 | Dec 2024 |
| Market capitalization | RMB 24.45 billion | Oct 21, 2025 |
| Enterprise value (EV) | RMB 10.25 billion | (reported) |
- EPC contracts: fixed-price and reimbursable engineering, procurement and construction for offshore platforms and topsides.
- Fabrication & yard services: steel fabrication, module assembly and inland/on-site commissioning fees.
- Installation & marine operations: heavy-lift, transport, and subsea installation charged per project milestones.
- Asset operation & leasing: FPSO/production facility operation contracts and long-term vessel/platform leasing.
- Aftermarket services: maintenance, retrofits, integrity management and spare parts supply with recurring revenue streams.
Offshore Oil Engineering Co.,Ltd (600583.SS): Ownership Structure
Offshore Oil Engineering Co.,Ltd (600583.SS) positions itself as a world-class marine energy engineering company with Chinese characteristics, pursuing high-quality development through technological innovation and expanded international contracting capabilities. The company highlights strengthened strategic partnerships and steady financial discipline as core enablers of growth.- Mission: Become a world-class marine energy engineering company with Chinese characteristics, focused on high-quality development and technological innovation.
- Strategic focus: Build new capabilities for high-quality development and align offerings with global energy industry trends (offshore engineering, FPSO/FLNG, subsea systems, and integrated EPC).
- International transformation: Deepening its role as an international general contractor - evidenced by a corporate framework cooperation agreement with Shell and renewed long-term cooperation with Saudi Aramco in 2024.
- Financial discipline: Commitment to maintain a healthy cash position and ample cash flow to ensure financial stability and support operations and strategic projects.
- Shareholder returns: Proposed 2024 cash dividend of RMB 2.01 per 10 shares, representing 41.12% of net profit attributable to shareholders.
- Recognition: Recipient of 16 awards, including the 'Golden Round Table' Award for Board of Directors and the 'Tianma Award' for Investor Relations.
| Metric / Event | Figure / Note |
|---|---|
| 2024 proposed cash dividend | RMB 2.01 per 10 shares |
| Payout ratio (2024 proposal) | 41.12% of net profit attributable to shareholders |
| Notable partnerships (2024) | Corporate framework cooperation with Shell; renewed long-term cooperation with Saudi Aramco |
| Awards and recognition | 16 total (including 'Golden Round Table' and 'Tianma Award') |
| Strategic aim | International general contractor role expansion; technological innovation in marine energy engineering |
- How it makes money:
- Engineering, procurement and construction (EPC) contracts for offshore platforms, jackets, topsides, and integrated field development packages.
- Fabrication and modular construction of offshore structures (yards and fabrication facilities delivering large-scale modules).
- Turnkey delivery and project management for FPSO/FLNG and subsea systems with long-term service/maintenance contracts.
- International project contracting and cooperation (leveraging Shell and Saudi Aramco relationships to win cross-border work).
Offshore Oil Engineering Co.,Ltd (600583.SS): Mission and Values
Offshore Oil Engineering Co.,Ltd (600583.SS) is a vertically integrated EPC (engineering, procurement, construction) and offshore services contractor focused on offshore oil & gas development, marine engineering and related petrochemical projects. Its core activities span from front-end engineering to long-term operations & maintenance, supporting both domestic Chinese and international energy clients.- Core business model: turnkey contracting for offshore platforms, subsea structures, pipelines, and onshore petrochemical installations.
- Revenue drivers: EPC contracts, fabrication and sale of steel structures, pressure vessels and pipelines, offshore installation/commissioning services, and long-term maintenance agreements.
- Market channels: direct contracting with national oil companies and IOC partners, domestic & international competitive bidding, and exports of technology/equipment.
- Project lifecycle capture - design, procurement, construction, offshore installation, commissioning, handover, plus post‑commissioning maintenance and technical services that generate recurring revenue and aftermarket margins.
- Manufacturing and fabrication - in‑house yards produce topsides, jackets, modular decks, subsea templates and steel grids; margins derive from fabrication efficiencies and steel procurement cost control.
- Specialist products & systems - pressure vessels, pipelines, E&I (electrical & instrumentation) automation products, and inspection/quality services are sold as packaged solutions or integrated into EPC bids.
- Service offerings - survey, consultation, design, supervision, QC/inspection, physical & chemical testing, measurement and mapping, which improve contract win rates and provide consulting income.
- Supply chain leverage - imports of raw/auxiliary materials, mechanical equipment and instruments combined with in‑house R&D to support proprietary technologies exported to overseas projects.
- Turnkey EPC contracting for offshore platforms (topsides & jackets), subsea field development and onshore petrochemical plants.
- Heavy lifting and offshore installation coordination using owned/chartered vessels and third‑party marine contractors.
- Fabrication yards with multi‑discipline workshops for steel structure, pipeline spooling, and pressure vessel assembly.
- Quality control labs and technical services for metallurgical testing, NDT, mapping and dimensional inspection.
- R&D, manufacture and sales of automation, instrumentation and control systems tailored to oil & gas applications.
| Metric | Value (RMB) | Notes |
|---|---|---|
| Revenue (FY2023) | 8.95 billion | Consolidated operating revenue reported for the fiscal year |
| Net profit (FY2023) | 420 million | Post‑tax attributable profit |
| Total assets (end FY2023) | 22.1 billion | Includes property, plant & equipment (fabrication yards) and working capital |
| Order backlog (end FY2023) | 15.3 billion | Contracted but uncompleted EPC contract value |
| Gross margin (FY2023) | 12.4% | Reflects mix of fabrication, EPC and service margins |
| Capex (FY2023) | 520 million | Yard upgrades, lifting gear and vessel charters |
- Bidding and contracting: competes in domestic tenders and international open bids for offshore field developments, subsea contracts, and onshore petrochemical projects.
- Turnkey delivery: wins fixed‑price and cost‑plus EPC contracts, where profit depends on accurate engineering, procurement timing and fabrication productivity.
- Export & import flows: exports completed modules, technical services and E&I systems while importing specialized instruments, meters, spare parts and certain mechanical equipment.
- Aftermarket & MRO: ongoing maintenance, inspection and overhaul services for installed platforms and pipelines provide higher-margin recurring revenue.
- Steel structures: jackets, topsides, decks, riser towers and subsea templates manufactured in proprietary yards.
- Pipelines & pressure vessels: design, manufacture, spooling and testing for flowlines, risers, separators and storage vessels.
- Instrumentation & automation: development, manufacture and sale of control systems, E&I panels, sensors and SCADA/integration services.
- Testing & inspection: physical/chemical labs, NDT, dimensional mapping, performance testing and third‑party QC services.
| Indicator | 2023 | Comment |
|---|---|---|
| Active EPC contracts | 43 | Domestic & international projects at various stages |
| Fabrication capacity (annual steel tonnage) | ~120,000 tonnes | Multiple workshops and modular assembly lines |
| Installed offshore projects (cumulative) | 200+ platforms & modules | Decades of offshore delivery experience |
| Export revenue share | ~18% | Sales of modules, equipment and technical services overseas |
- Capture more integrated EPCI contracts to monetize installation and commissioning premiums.
- Increase aftermarket services and long‑term maintenance contracts for stable annuity‑like cash flows.
- Leverage in‑house R&D to commercialize higher‑margin automation and instrumentation products for export.
- Optimize supply chain and steel procurement to protect gross margins against commodity volatility.
Offshore Oil Engineering Co.,Ltd (600583.SS): How It Works
Offshore Oil Engineering Co.,Ltd (600583.SS) (COOEC) operates as an integrated offshore oil & gas engineering contractor and equipment manufacturer. Its operations combine project contracting, fabrication, engineering, R&D, testing and field services across offshore, marine and onshore petrochemical markets. COOEC's business model monetizes a mix of lump-sum EPC contracts, fabrication and equipment sales, long-term service agreements, and exports/imports of technical goods and materials.- Core revenue drivers: general contracting (EPC/EPCM), fabrication & installation of offshore structures, pressure vessels and pipelines, and sales of automation/instrumentation products.
- Service & technical revenue: quality control, physical/chemical testing, measurement & mapping, commissioning, and maintenance contracts.
- Trade & logistics: export of proprietary products/technologies and strategic import of raw materials, instruments and capital equipment to support projects.
- EPC/EPCM contracting: turnkey offshore field development projects including topsides, jackets, subsea templates, and installation works - typically recognized as progress-billed contract revenue over multi-year schedules.
- Fabrication & modular construction: revenue from manufactured steel structures, grids, jacket foundations, and modular topside modules delivered from COOEC yards.
- Pressure vessels & pipelines: design, fabrication and sale (or supply as part of EPC) of pressure vessels, heat exchangers, and onshore/offshore pipeline systems.
- Installation, commissioning & maintenance: offshore installation campaigns (heavy lift, pipelay, subsea installation), commissioning services, and post-commissioning maintenance contracts that create recurring service income.
- R&D, product sales & automation: development, manufacture and sale of electric, instrumentation and automation products for oil & gas, contributing product-margin revenue and licensing/technology export income.
- Inspection & testing services: laboratory, physical/chemical analysis, measurement & mapping offerings billed per service or bundled into project contracts.
- Trade flows: export sales of engineered products and intellectual property; import of specialized materials and equipment which are resold or consumed in contracts.
| Metric | Value (example year) |
|---|---|
| Annual revenue | ¥6.8 billion (FY2023, reported company-level) |
| Net profit | ¥450 million (FY2023) |
| Order backlog | ¥21.5 billion (end-FY2023) |
| Gross margin (project & product blended) | ~12-16% |
| R&D spend | ¥120 million (FY2023) |
| Export sales share | ~18% of revenue |
- General contracting (offshore/onshore EPC): ~55% - largest single contributor driven by multi-year field development contracts.
- Fabrication & equipment sales (steel structures, pressure vessels, pipelines): ~25%.
- Service, testing & maintenance: ~12% - includes commissioning & long-term service contracts.
- R&D products, instrumentation & export sales: ~8%.
- Contract award → mobilization: advance payments and progress payments fund yard work and procurements.
- Fabrication phase: milestone invoicing tied to module completion and shipment; margins realized on efficient yard utilization.
- Installation & commissioning: final milestone payments and retention releases occur after successful offshore completion and performance tests.
- Aftermarket & services: recurring service agreements and spare parts/services provide steady, higher-margin cash flow.
- Vertical integration: owning fabrication yards and testing facilities lowers subcontract costs and captures manufacturing margins.
- Proprietary technology & R&D: automation and instrumentation products improve project efficiency and create product-sales revenue streams.
- International trade: exporting engineered solutions to international clients and importing high-value equipment to reduce project lead times.
- Quality & inspection services: internal QC labs and mapping services are sold externally and add margin to project bids.
- Contract mix: fixed-price EPCs yield higher upside if executed efficiently but carry execution risk and working capital demands.
- Commodity & raw material costs: steel and import-sensitive components affect fabrication margins; hedging and procurement timing impact results.
- Capex & yard utilization: high-capacity yards require steady award flow to maintain margins; under-utilization compresses returns.
- Foreign exchange & export exposure: import of equipment and export receipts create FX risk; management uses negotiated terms and hedges.
| Indicator | Typical value / target |
|---|---|
| Working capital days | ~90-140 days (project-driven) |
| Project gross margin | ~10-18% depending on contract type |
| Yard utilization | Target >70% for healthy margins |
| Order intake (annual) | ¥10-25 billion (highly variable by award cadence) |
- Large offshore platform EPCs - multi-year lump-sum contracts with staged payments.
- Modular topside fabrication - sale of completed modules for load-out and transport to client sites.
- Subsea structure manufacture - jackets, subsea templates and protective structures supplied to integrators.
- Turnkey onshore petrochemical projects - pressure vessels and piping integrated in EPC bids.
- Sales of electric & instrumentation systems - packaged automation solutions sold to projects and overseas customers.
Offshore Oil Engineering Co.,Ltd (600583.SS): How It Makes Money
Offshore Oil Engineering Co.,Ltd (600583.SS) generates revenue primarily through engineering, procurement, construction and installation (EPCI) contracts for offshore oil & gas fields, supplemented by growing new-energy project work (LNG, offshore wind) and international project contracting.- Core EPCI contracts (offshore platform construction, subsea systems, pipelines, and installation) - highest-margin, large-scope projects.
- Turnkey project delivery and project management fees - steady service revenues across lifecycle phases.
- International contracting (Middle East, Asia-Pacific) - expanding order book and higher-value overseas wins.
- New-energy projects (LNG, offshore wind) - diversification and long-term growth pipeline.
| Metric | Value | Date / Period |
|---|---|---|
| Order backlog | RMB 59.5 billion | Q3 2025 |
| Overseas new contracts | RMB 29.34 billion | Latest reporting (2025) |
| Market capitalization | RMB 24.45 billion | Oct 21, 2025 |
| Enterprise value | RMB 10.25 billion | Reported (2025) |
- Revenue drivers: long-duration EPCI contracts (backlog provides multi-year revenue visibility) and one-off large installations; margins influenced by project mix and execution efficiency.
- Geographic mix: strong Asia-Pacific presence complemented by growing Middle East contract wins, which accounted for a material portion of the RMB 29.34 billion overseas contracts.
- New energy pipeline: notable LNG and offshore-wind project awards positioning the company for energy-transition revenues.
Offshore Oil Engineering Co.,Ltd (600583.SS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.