China Merchants Energy Shipping (601872) H2 2024 earnings summary

Executive summary

• Achieved revenue of ¥25.80 billion, down 0.32% year-over-year, with net profit attributable to shareholders of ¥5.11 billion, up 5.59% year-over-year.

• Operating cash flow was ¥8.48 billion, down 4.95% year-over-year, reflecting lower oil tanker freight rates.

• Cash dividend payout for 2024 totals ¥2.08 billion, representing 40.7% of net profit; including share buybacks, total shareholder return is 43.3% of net profit.

• Board approved a final dividend of ¥1.56 per 10 shares (pre-tax), with a mid-year dividend of ¥1.00 per 10 shares already paid.

Financial highlights

• Gross margin improved in dry bulk, container, and ro-ro shipping segments, while oil tanker margin declined.

• Basic and diluted EPS were ¥0.63, up 5% year-over-year.

• Net assets attributable to shareholders rose 8.55% to ¥40.04 billion; total assets increased 13.18% to ¥70.62 billion.

• Non-recurring profit items contributed ¥92.44 million, mainly from government grants and asset disposals.

Outlook and guidance

• Expects continued global shipping market volatility in 2025, with oil tanker and dry bulk fundamentals remaining solid but subject to geopolitical and macroeconomic risks.

• Plans to invest ¥11.7 billion in 2025 and ¥14.2 billion in 2026 for fleet expansion and upgrades, with 22 new ships to be built in 2025.

• No refinancing plans; funding to come from internal cash flow and bank loans.