On July 24, BOMESC Offshore Engineering Company Limited (hereinafter referred to as “BOMESC” or “the Company”) released its 2026 semi-annual report.
The report revealed that in the first half of 2026, BOMESC generated operating revenue of approximately 764 million yuan (approximately $113 million), a year-over-year decrease of 26.72%; total profit was approximately -82.67 million yuan, a sharp decline of 984.12% year-over-year; net profit attributable to shareholders of the listed company was approximately -70.44 million yuan, a steep drop of 668.72% year-over-year; and net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, was approximately -77.24 million yuan (approximately to -$11.4083 million), a precipitous decline of 10,393.75% year-over-year.
During the reporting period, BOMESC successfully secured a major construction contract for the Saipem NFPS offshore compression complex in Qatar; at the same time, it entered into a long-term framework cooperation agreement with SBM, a leading global EPC contractor, thereby establishing a channel for the regular and sustained acquisition of projects.
BOMESC stated that the securing of a series of large-value orders has effectively bolstered its core production capacity for the coming years, completely alleviating the temporary operational pressure caused by the concentrated completion of existing projects in early 2026 and the resulting gap in the transition to new orders. Leveraging the ongoing execution of large-scale offshore engineering module projects abroad, the company continues to solidify its leading subcontracting position in the mature South American market while simultaneously expanding its emerging LNG modular business in the Middle East. Its global customer base continues to diversify, and its reliance on any single region or customer is steadily decreasing.
BOMESC previously noted that the company’s performance in the first half of 2026 saw a temporary year-over-year decline, primarily due to the combined impact of three factors: the external industry environment, exchange rate fluctuations, and internal project cycle transitions.
At the external level, ongoing global geopolitical conflicts continue to disrupt the landscape of the international energy market, leading to extended timelines for the implementation of overseas oil and gas projects and a general deferral of capital expenditure. BOMESC successfully signed a new overseas module fabrication contract in late April 2026. While the timing of this order aligns with the company’s operational plan, the associated revenue will be realized gradually, primarily in the second half of the year; the inability to generate substantial revenue during the first half has created short-term operational pressure. Furthermore, as BOMESC’s overseas projects are settled in US dollars, the temporary appreciation of the RMB against the dollar during this period resulted in exchange losses upon the conversion of foreign currency revenue, further eroding profit margins.
Internally, BOMESC is in a transitional period between old and new projects; the delivery of high-margin, large-scale offshore engineering module projects was largely completed by the end of 2025, and revenue recognition for the existing order backlog has essentially concluded. For 2026, newly signed orders are currently limited to preliminary stages—such as detailed design, raw material procurement, and pre-fabrication preparations—and have not yet entered the phase of large-scale construction and concentrated revenue recognition. This temporary contraction in revenue, compounded by the ongoing amortization of fixed production costs (including labor and equipment depreciation), has collectively resulted in a projected loss for the current period.
From a long-term profitability perspective, BOMESC notes that its offshore engineering projects are characterized by industry-typical changes in workload and the addition of incremental tasks during implementation; revenue from these changes—recognized gradually during the execution phase—effectively boosts the overall gross margin of the respective projects and provides positive support for operating results in subsequent years.
Established in 1996 and located in the Binhai New Area of Tianjin, China, BOMESC is a specialized EPC service provider for modules serving the international market, with nearly 100% of its business derived from international clients. The company’s fabrication yard covers an area of approximately 760,000 square meters and features a 1,000-ton gantry crane and 1,000 meters of deep-water quay frontage, boasting an annual module fabrication capacity of 150,000 tons.