COSCO SHIPPING Energy Transportation (1138) H1 2025 earnings summary

Executive summary

• Net profit attributable to shareholders was RMB 1,894 million for 1H 2025, down 28.99% year-over-year, with EBITDA at RMB 5.07 billion, a 12.5% decrease.

• Revenue for the period was RMB 11.57 billion, a decline of 2.5% year-over-year.

• The company operates the world's largest oil tanker fleet and is a leader in China's oil and gas import transportation, with significant LNG shipping operations.

• Transportation volume reached 94.48 million tons (+13.1% YoY), with turnover of 342.7 billion tonne-miles (+18.8% YoY).

• No interim dividend was declared for H1 2025.

Financial highlights

• Operating expenses increased by 10.93% year-over-year, mainly due to higher port disbursements and charter costs.

• Gross profit margin declined by 9.3 percentage points year-over-year to 23.0%.

• Net cash from operating activities was RMB 3.08 billion, down 17% year-over-year.

• Basic and diluted EPS were RMB 0.3971 per share, down from RMB 0.5592 year-over-year.

• No interim dividend for H1 2025.

Outlook and guidance

• VLCC market expected to remain stable due to limited new deliveries; small and medium tankers may face rate pressure.

• LNG shipping demand supported by new global capacity, with time charter rates expected to remain high.

• LPG shipping market to benefit from OPEC production and Indian demand, with VLGC capacity tightening.

• Chemical shipping market to see increased shipbreaking and potential rate recovery.

• Focus on digital transformation, green transition, and risk management in H2 2025.