China Merchants Energy Shipping (601872) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 12.58 billion, down 4.91% year-over-year due to weaker tanker and dry bulk markets.

• Net profit attributable to shareholders was RMB 2.12 billion, a 14.91% decrease year-over-year.

• Cash dividend of RMB 0.7 per 10 shares and share buybacks totaled RMB 875.76 million, 41.22% of net profit.

• The company maintained world-leading scale in VLCC and VLOC fleets, with ongoing fleet optimization and green initiatives.

Financial highlights

• Operating income: RMB 12.58 billion, down 4.91% year-over-year.

• Net profit attributable to shareholders: RMB 2.12 billion, down 14.91% year-over-year.

• Operating cash flow: RMB 3.53 billion, down 13.93% year-over-year.

• Basic and diluted EPS: RMB 0.26, down 16.13% year-over-year.

• Gross margin and net margin declined due to market downturns in oil and dry bulk shipping.

Outlook and guidance

• Oil tanker market expected to improve in H2 2025 as global inventories remain low and OPEC+ increases output.

• Dry bulk market seen as more stable than 2024, with potential for seasonal demand boosts in coal and grain.

• LNG shipping remains robust with high long-term charter rates, despite short-term spot rate pressure.

• Continued focus on green shipping, digitalization, and fleet optimization.