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Overseas Projects Fully Resumed, ZPEC Business Performance in First Half Year Turned Losses Into Pro

Shanghai Securities News China Securities News

On the evening of August 30th, ZPEC disclosed its 2021 semi-annual financial report. The company achieved business income of $115M USD in the first half of the year, a decrease of 16.12% compared to last year.  However, the net profit attributable to the owners of the parent company was $2.99M USD, which turned losses into profits.  

The company stated that in an environment where the epidemic had eased and oil prices had recovered, the company's overseas engineering business had gradually resumed production in January. The suspended projects, due to the epidemic last year, had resumed work and were put into production in the first half of the year. In addition, the Wensu Project in Xinjiang Province was transferred to the production stage and the current daily output stabilized at more than 500 tons, which has become a new growth point for the company. By the end of June 30, 2021, the Wensu Block had achieved an output of 101,883.22 tons. The cumulative output in 2021, so far,  is 50,201.12 tons, which is 103.08% of the semi-annual output target and 28.69% of the annual output target.

The company is actively deploying to enter more high-end markets andthrough careful organization, it passed the strict pre-qualification of Saudi Aramco in 2018. In March of this year, the company signed a drilling project contract with Saudi Aramco worth about $120 million USD, marking the companys successful entry into the Saudi drilling engineering market which is the highest threshold recognized by the world oil service industry. This historic breakthrough also marks ZPEC becoming the first Chinese private drilling company cooperating with Saudi Aramco.

The company said that while overseas projects resumed and production operations returned to normal, the domestic drilling business was also grabbing production and market. According to statistics, the company's overseas drilling projects in the first half of the year have reached $208.9M USD, an increase of 41.61% over the same period compared to last year. Thirteen domestic drilling contracts have been signed with a contract value of $35.08M USD, an increase of 153.33% over the same period compared to last year.

Public information shows that the three major business segments of ZPEC includeexploration and development, oil service engineering, and petroleum equipment manufacturing, all of which are in the upper reaches of the petroleum industry chain. After years of development, ZPEC has become the first private enterprise to pass the review and record of the Domestic Conventional Oil and Gas Newly-proven Reserves Report. The company takes "Resource Advantages, Technological Advantages, and Cost Advantages" as its core competence to open up the upstream and downstream industrial chain, forming a coordinated development between exploration and development to drive engineering services, engineering services to drive equipment manufacturing, and coordinated development of exploration and development, engineering services, and equipment manufacturing. This "New Model" of internal circular development successfully pulls each other.  (Shanghai Securities News reporter Zhao Ping)


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