Leishen Energy secured a supply agreement with the Abu Dhabi National Oil Company (ADNOC), placing the company in ADNOC’s supplier system and covering equipment sales as well as aftermarket services such as maintenance and leasing.
The agreement was finalized during ADIPEC 2025, which ran from November 3‑6, and will give Leishen access to ADNOC’s extensive project pipeline, reinforcing its strategy to deepen its Middle‑East footprint.
During the same event, Leishen’s chairman met with the CEO of the GL Group, the first privately owned energy conglomerate in Azerbaijan, to lay the groundwork for potential collaboration in Azerbaijan and Turkey, further extending the company’s regional reach.
Leishen has also announced plans to build a manufacturing plant in Saudi Arabia by 2026, aligning with Vision 2030 and positioning the company to serve markets in Africa, Europe, and the United States.
In fiscal year 2024, Leishen reported revenue of $69.07 million, down 5.5% from the prior year, and net income of $8.10 million, a 31.3% decline. The revenue drop was driven by lower domestic sales of clean‑energy equipment, partially offset by growth in the new‑energy segment. Gross margin fell to 23.2% from 25.1% in FY2023, reflecting lower margins in oil and gas engineering services. Operating expenses rose due to increased selling, marketing, and R&D costs associated with international expansion.
The ADNOC agreement and GL Group talks are strategic milestones that could offset the current margin compression and revenue decline by opening new revenue streams and deepening Leishen’s presence in high‑growth regions. The planned Saudi plant will further diversify the company’s manufacturing base and reduce reliance on overseas suppliers.
While management has not issued a statement on the deals, the company’s financial trajectory suggests a focus on scaling operations in emerging markets while managing cost pressures from its existing business mix.
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