COSCO Shipping Energy Transportation Co Ltd

In early trading on October 8, A-share shipping stocks surged. COSCO Shipping Energy hit the daily limit up, China Merchants Energy Shipping, Nanjing Tanker Corporation, and Haitong Development rose more than 5 percent, while Jinjiang Shipping, Phoenix Shipping, and China COSCO Shipping Corporation followed higher. On the news front, according to CCTV News, on October 7 local time, Naghdi, an adviser to the commander of Iran's Islamic Revolutionary Guard Corps, said the Strait of Hormuz has been closed and Iran will block the strait's illegal shipping lanes until Iran's legitimate demands are met. Affected by repeated US-Iran conflicts, oil shipping rates have continued to rise. Clarksons data show that average VLCC earnings reached 277,995 US dollars per day in the third quarter, and after early October, earnings on some routes have exceeded 1.6 million US dollars per day, with overall market earnings at one point surpassing 600,000 US dollars per day. Huayuan Securities believes that with upstream volume expansion, midstream efficiency declines, and downstream panic buying, the great era of oil shipping is unfolding. Since the US-Iran conflict reignited in July, geopolitical disruptions have continued to affect the crude oil supply chain, and oil shipping prosperity has entered a new phase. CITIC Securities said that since August, the spiraling loss of effective shipping capacity and the resonance of increased cargo volumes have continued to squeeze the transport segment as the core contradiction. Preliminary Kpler data show that as of October 1, the seven-day moving average was 18.5 million barrels per day, with crude oil shipments from the Greater Middle East roughly unchanged from before the conflict. CITIC Securities recommends watching the marginal increase in Chinese cargo volumes after the National Day holiday. On October 5, Saudi Arabia widened the discount for Arab Light crude sold to Asia in November. CITIC Securities conservatively forecasts China Merchants Energy Shipping's annual profit at 20.5 billion yuan. GF Securities also believes that looking ahead, the focus should be on oil shipping, Southeast Asian container shipping, and dry bulk shipping. Oil shipping remains the sector with the most prominent prosperity, and the duration of high freight rates is key to determining fourth-quarter earnings elasticity, with China Merchants Energy Shipping and COSCO Shipping Energy warranting close attention.

COSCO Shipping Energy Transportation released its 2026 interim report. Total operating revenue was 15.146 billion yuan, up 30.03% year on year. Net profit attributable to the parent company was 4.545 billion yuan, up 143.21% year on year. Net cash inflow from operating activities was 6.962 billion yuan, up 128.54% year on year. The company's asset-liability ratio was 49.05%, down 3.80 percentage points from the same period last year. Gross margin was 41.39%, up 18.22 percentage points year on year. Return on equity was 9.45%, up 4.35 percentage points year on year. Diluted earnings per share was 0.83 yuan, up 112.28% year on year. Total asset turnover was 0.16 times, and inventory turnover was 7.93 times, achieving five consecutive years of growth. The number of shareholders was 92,400, and the top ten shareholders held 77.87% of the total share capital.

COSCO Shipping Energy Transportation disclosed its 2026 half-year results on August 28. During the reporting period, the company achieved operating revenue of 15.146 billion yuan, up 30.03% year on year. Net profit attributable to shareholders of the listed company was 4.545 billion yuan, a year-on-year increase of 143.21%. The company also announced a dividend plan, proposing a cash dividend of 2.8 yuan per 10 shares, tax included, to all shareholders.