China Merchants Energy Shipping (601872) investor relations material

Executive summary

• Revenue rose 56.15% year-over-year to RMB 19.65 billion, with net profit attributable to shareholders up 227.57% to RMB 6.96 billion, driven by surging tanker rates and improved dry bulk and LNG shipping markets.

• Operating cash flow increased 130.56% year-over-year to RMB 8.13 billion, reflecting strong market conditions and higher freight rates across core segments.

• The board approved an interim cash dividend of RMB 1.30 per 10 shares, totaling RMB 1.05 billion, representing 15.08% of net profit for the period.

Financial highlights

• Operating income: RMB 19.65 billion, up 56.15% year-over-year.

• Net profit attributable to shareholders: RMB 6.96 billion, up 227.57% year-over-year.

• Basic and diluted EPS: RMB 0.86, up 230.77% year-over-year.

• Operating cash flow: RMB 8.13 billion, up 130.56% year-over-year.

• Gross margin and net margin both improved significantly due to higher freight rates and cost control.

Outlook and guidance

• Management expects the tanker market to remain in a tight supply-demand balance, with rates likely to stay at historically high levels in the second half of 2026.

• Dry bulk shipping is projected to benefit from continued strong commodity demand and supply constraints, while LNG and roll-on/roll-off shipping will see capacity growth and ongoing volatility.

• Risks include geopolitical instability, macroeconomic uncertainty, regulatory changes, and potential overcapacity from new vessel deliveries.