Sinopec Engineering Profit Drops 18%, Announces H-Share Buyback
SingTao · 2 SOURCESabout 1 hour ago1 MIN
Summary
Sinopec Engineering (stock code: 2386) announced its 2024 interim results on Wednesday, reporting a net profit of 1.137 billion RMB, representing an 18% year-on-year decline. The company declared an interim dividend of 0.127 RMB per share, down 20.6% from the same period last year. However, revenue increased 12.67% year-on-year to 35.624 billion RMB, driven by growth in engineering procurement and construction contracts .
Key Points
- Sinopec Engineering reported net profit of 1.137 billion RMB, down 18% year-on-year; EPS was 0.26 RMB
- Interim dividend fell 20.6% to 0.127 RMB per share despite revenue rising 12.67% to 35.624 billion RMB
- Overall gross margin contracted 0.5 percentage points to 7.7%, weighed down by declining construction business efficiency
- Saudi Marjan and Saudi Berri oil and gas projects completed but not yet settled, contributing to construction segment operating loss in H1
- Board approved H-share buyback plan, targeting at least 1 billion HKD within six months
Why It Matters
The profit decline amid revenue growth highlights operational challenges in Sinopec Engineering's construction segment, particularly from large overseas projects in Saudi Arabia . The announced H-share buyback signals management's confidence in the company's value, potentially supporting stock price performance in Hong Kong trading .
The profit decline amid revenue growth highlights operational challenges in Sinopec Engineering's construction segment, particularly from large overseas projects in Saudi Arabia . The announced H-share buyback signals management's confidence in the company's value, potentially supporting stock price performance in Hong Kong trading .