Sinopec Engineering Group Reports 10% Revenue Growth in H1 2025, with Overseas Business Surging 92%

Sinopec Engineering (Group) Co., Ltd. (SEG) announced in its interim report that the company achieved revenue of RMB 31.559 billion in the first half of 2025, a year-on-year increase of 10.1%. The growth was primarily driven by the accelerated construction and settlement phases of major projects such as Aramco Huajin, SABIC Mangrove Ethylene, Jilin Chemical renovation and upgrade, and Saudi Riyas.

In terms of business segments, petrochemicals remained the core contributor, accounting for 63% of total revenue with a slight increase of 0.3% year-on-year. Revenue from the refining segment surged 85.9%, representing 18.1% of total revenue. The new coal chemical segment contributed 4.1%, soaring 389.1% year-on-year, mainly supported by the olefin projects of Lianzhuang New Materials, Shaanxi Energy and Chemical Industry Group, and Inner Mongolia Rongxin Chemical. Storage, transportation, and other businesses accounted for 14.8% of revenue, down 15.1% year-on-year.

By contract type, Engineering, Procurement, and Construction (EPC) accounted for 55.7% of revenue, up 24.5% year-on-year. Construction business represented 37.6%, down 1.6% year-on-year. Engineering consulting and licensing contributed 5.6%, rising 24.5% year-on-year, while equipment manufacturing accounted for 1.1%, up 1.3% year-on-year.

Geographically, the Chinese market contributed 76.5% of revenue, down 2.6% year-on-year. Overseas markets experienced rapid growth, contributing 23.5% of revenue with a significant 92% year-on-year increase.

In terms of profitability, the company reported a net profit of RMB 1.388 billion, up 4.8% year-on-year, with basic earnings per share of RMB 0.32. Gross profit reached RMB 2.6 billion, operating profit was RMB 1.16 billion, and pre-tax profit stood at RMB 1.61 billion, increasing by 3.6%, 23.8%, and 5.9% year-on-year, respectively. The gross margin declined from 8.8% in the same period last year to 8.2%, which the company attributed to delayed settlements in certain construction projects and intensified competition in some business segments. Net operating cash flow was RMB 3.3 billion, compared to a net outflow of RMB 4.16 billion in the same period last year.

In the first half of the year, SEG secured new contracts valued at RMB 71.158 billion, a sharp increase of 42.1% year-on-year. The order backlog reached RMB 212.276 billion by the end of the period, up nearly 23% from the end of last year, equivalent to 3.3 times the total revenue of the previous year, indicating strong growth potential.

In its outlook, the company highlighted that China's energy and chemical industry is accelerating its transformation and upgrading, with trends such as oil-to-chemicals, specialty products, and high-end upgrades gaining momentum. Emerging areas like CCUS, zero-carbon energy alternatives, and green low-carbon innovations are expected to provide new growth drivers. In the international market, the Middle East remains a core region for capacity expansion, while Central Asia, Southeast Asia, Africa, and Latin America demonstrate strong growth potential.

Despite challenges such as compressed profit margins in certain segments, Sinopec Engineering Group maintained steady growth in the first half of 2025, supported by domestic industrial upgrades and rapid expansion in overseas markets.