COSCO Shipping Energy Delivers 140.58% Surge in H1-26 Net Profit, Boosts Interim Dividend Amid Strong Tanker Market

Bulletin Express
Sep 28

COSCO Shipping Energy Transportation Co., Ltd. (COSCO Shipping Energy) reported a robust first-half 2026 performance, driven by an exceptional tanker market and expanded LNG operations.

Financial Highlights • 1H26 revenue rose 30.26 % year on year (YoY) to RMB15.08 billion. • Gross profit margin widened by 18.40 percentage points to 41.4 %. • Net profit attributable to shareholders jumped 140.58 % YoY to RMB4.56 billion. • EBITDA increased 69.14 % YoY to RMB8.66 billion. • Operating cash flow reached RMB6.96 billion, up 128.5 % YoY. • Interim dividend of RMB0.28 per share declared, following the RMB0.38 per-share final dividend for FY25.

Segment Performance • International oil shipping revenue climbed 44.0 % to RMB10.49 billion; gross margin expanded to 44.6 %. • Domestic oil shipping revenue edged down 2.0 % to RMB2.69 billion, yet gross margin improved to 28.3 %. • LNG shipping revenue advanced 22.2 % to RMB1.52 billion; investment income rose 17.81 % to RMB463 million. • LPG shipping revenue increased 24.9 % to RMB178.55 million; gross margin reached 30.9 %. • Chemical shipping revenue grew 24.2 % to RMB198.68 million, though margin softened to 16.0 %.

Fleet and Capacity • 153 oil tankers in operation totaling 21.90 million DWT, plus 38 tankers (4.28 million DWT) on order. • 66 LNG carriers in service (11.18 million m³) with another 31 units (6.18 million m³) under construction. • 14 LPG carriers (0.14 million m³) operating and five newbuilds (0.36 million m³) on order. • Nine chemical tankers in operation and one under construction. Capital commitments for new vessels stand at RMB29.67 billion, primarily for delivery through 2030.

Balance Sheet & Capital Management • Cash and bank balances climbed 17.71 % since year-end to RMB18.19 billion. • Net debt-to-equity ratio held steady at 40 %. • Issued a RMB2.50 billion 10-year bond at a 2.06 % coupon and raised RMB5.40 billion in new bank borrowings during the period.

Market Conditions • VLCC time-charter-equivalent (TCE) on the TD15 West Africa-China route averaged USD117,773/day, +180 % YoY, as Middle-East disruptions pushed Asian buyers to longer-haul Atlantic cargoes. • Aframax markets diverged, with Atlantic trades buoyant and East-Suez routes pressured by product-carrier crossover. • Spot LNG charter rates firmed on Hormuz constraints and US project start-ups; 42 LNG newbuilds delivered globally in 1H26.

Strategic Outlook (2H26) • Management expects Middle-East geopolitics to keep crude trade lanes elongated, supporting tanker earnings. • Offshore Chinese crude movements and stable LNG long-term charters provide earnings resilience. • Digitalisation, fleet energy-saving retrofits and alternative-fuel adoption remain priority capex areas. • COSCO Shipping Energy targets further integration along the energy supply-chain while maintaining a disciplined capital structure and “major safety” framework.

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