China Petroleum Engineering plans to raise up to 5.9B yuan

China Petroleum Engineering plans to raise up to 5.9B yuan

China Petroleum Engineering, a significant player in the petroleum and chemical sector, has announced plans to raise up to 5.9 billion yuan (approximately 850 million USD) in its latest funding round. The company, which has been consistently performing well in the industry, aims to utilize these funds for strategic investments and expansion.

According to the company's latest financial report, China Petroleum Engineering reported a total revenue of RMB 1.41 trillion for the first half of 2025, marking a significant growth compared to the previous year. The company's profit attributable to shareholders reached RMB 23.752 billion, with basic earnings per share amounting to RMB 0.196 [1]. The net profit attributable to shareholders was RMB 21.483 billion, with basic earnings per share at RMB 0.177. The company's net cash flow from operating activities for the first half of 2025 was RMB 61.016 billion, representing a 44.4% year-on-year increase [1].

These robust financial figures indicate the company's strong operational performance and financial health. The planned capital raise is expected to further bolster China Petroleum Engineering's position in the market, allowing it to invest in new projects, improve infrastructure, and enhance its technological capabilities.

The company's earnings report for the half-year ended June 30, 2025, showed sales of CNY 1,380,387 million, a decrease from CNY 1,545,920 million a year ago. However, revenue was CNY 1,409,052 million, a slight decrease from CNY 1,576,131 million a year ago. Net income was CNY 23,752 million, down from CNY 37,079 million a year ago. Basic earnings per share from continuing operations were CNY 0.196, compared to CNY 0.307 a year ago [2].

Despite the decrease in sales and revenue, the company's earnings per share remained relatively stable, indicating that it has been able to manage its costs effectively. The planned capital raise is likely aimed at offsetting the decrease in sales and revenue and to support the company's growth initiatives.

In conclusion, China Petroleum Engineering's plan to raise up to 5.9 billion yuan is a strategic move that aligns with its financial performance and growth objectives. Investors and financial professionals should closely monitor the company's progress as it executes its plans to ensure sustainable growth and profitability.

References:
[1] https://seekingalpha.com/news/4488151-china-petroleum-chemical-reports-1h-results
[2] https://www.marketscreener.com/news/china-petroleum-chemical-corporation-reports-earnings-results-for-the-half-year-ended-june-30-202-ce7c51d3d081f72c