Sinopec Oilfield Service Corporation (SSC), the engineering subsidiary of Sinopec, reported a record year for new contracts in 2025, with a total value of 95.6 billion yuan ($13.9 billion), marking a 4.8% year-on-year increase. This performance was described as the best in the company's history.

Overseas Performance and Strategy

The company's overseas operations were a significant driver of growth. Overseas contracts alone totaled 26.7 billion yuan, a 9.9% year-on-year increase. Revenue from overseas core business reached 20.01 billion yuan, up 10.5% and accounting for 25.2% of total revenue. Leadership stated an intention to continue expanding in the Middle East, the Americas, and Africa while consolidating its position in core markets.

Financial Results and Profitability

Despite the strong new contract value, SSC's consolidated revenue for 2025 was 80.71 billion yuan, a slight 0.5% year-on-year decline. The company attributed this decrease to the optimization of upstream capital expenditure and the close-out of certain projects. However, profitability improved, with the gross profit margin rising by 0.3 percentage points to 8.1%, achieved through technological innovation and internal resource optimization.

Key Contract Wins and Regional Focus

SSC secured several major international contracts in 2025, including:

• 10-year drilling rig extension contracts with Saudi Aramco and Kuwait Petroleum Corporation worth 18.2 billion yuan.
• A 2.1 billion yuan contract from TotalEnergies for phase two of the Ratawi oilfield in Iraq.

The company outlined specific regional strategies for the near future:

• Middle East: In Saudi Arabia, SSC will monitor new Aramco geophysical projects, develop pipeline and station upgrades, and expand into municipal projects. In Kuwait, it will focus on executing its current drilling contract to introduce more technical services.
• Americas: The company aims to expand market share in Ecuador. In Mexico, it will complete bidding for new 3D geophysical exploration contracts and target well maintenance and production restart work.
• Africa: In Uganda, SSC will concentrate on TotalEnergies' Tilenga project to secure more engineering contracts. In Algeria, the focus will be on drilling and unconventional oil and gas development services.

Market Outlook

Company leadership expressed confidence in the stability of global upstream exploration and production investment for 2026, despite uncertainties from the Middle East conflict. They also noted that a stable investment environment in China would provide a steady workflow, allowing SSC to continue pursuing breakthroughs in key technologies.