CNOOC Engineering (600583): Acquisition of the largest domestic LNG project highlights the company’s strength in the field of LNG engineering


CNOOC Engineering (600583): Acquisition of the largest domestic LNG project highlights the company’s strength in the field of LNG engineering

The company’s recent CNOOC project announcement has resulted in a major contract: the company and Caofeidian Xintian Liquefied Natural Gas Co., Ltd. recently bankrupted the Tangshan LNG Project Receiving Station Phase I project design management, procurement, and construction (EMPC) general contract contract with a contract value of approximately 43.

7.8 billion.

According to the contract, the company will build four 20 general-purpose storage tanks and related supporting projects in the first phase of the project, including some docks, trestle bridges, process areas, tank truck loading areas, etc., and provide design management and procurement during project implementation.Project construction, commissioning and other related work are expected to be completed by the end of 2022.

Caofeidian Xintian Liquefied Natural Gas Co., Ltd. Hong Kong-listed company Xintian Green Energy (956.

HK) ‘s wholly-owned subsidiary, Xintian Green Energy is a state-owned enterprise controlled by Hebei Construction Investment, a subsidiary of the Hebei Provincial Government.

According to the Xintian Green Energy Plan, the Tangshan LNG project is planned for a total of three phases, with a total unloading capacity of more than 1200 (500 + 500 + 200 per year), and the first phase of the project and supporting facilities will be completed in the fourth quarter of 2022.

The review won the largest LNG project in China, demonstrating the company’s strength in the field of LNG engineering.

The Tangshan Xintian LNG project is the LNG project with the largest designed handling capacity in China.

This contract is also the largest domestic LNG project contract contracted by the company so far.

We believe this is the company’s long-term, from fully completing the Yamal LNG project in Russia to helping sister company CNOOC implement its strategy of accelerating the expansion of its internal LNG receiving station. So far, it has begun contracting ultra-large-scale LNG projects outside the CNOOC system, accumulating experience all the way, The results of ploughing the market.

We believe 合肥夜网 that the company has achieved a better reputation in the field of LNG engineering at home and abroad, and is expected to further enhance the company’s influence in this field through the successful implementation of more benchmarking projects.

Carefully selected, showing the company’s operational strength.

Many investors are wondering why the company did not win the bid for the Russian Arctic 2LNG project this year.

However, in our opinion, considering the limited construction site resources in the next two years, the Canadian LNG project that the company won earlier this year and this single Tangshan Xintian LNG project contract may all be Arctic 2 projects.

Even if the contract price, construction period and other conditions are not considered, we believe that the successful implementation of the first phase of the Tangshan Xintian LNG project will also provide the company with a guarantee for further bids for the second and third phases of the project, which will help the company in the medium and long term.To continue to earn.

Estimates suggest maintaining earnings forecasts with a target price of 7.

7 yuan (corresponding to 1.

5x FY19 P / B ratio and 12% upside), maintaining outperformed industry level.

The current consensus of the company corresponds to 1.

3 times FY19 P / B ratio.

Risk oil prices fluctuated sharply, and gross margin recovery was slower than expected.