COSCO SHIPPING Energy Transportation (1138) Q1 2025 earnings summary

Executive summary

• Net profit attributable to shareholders reached RMB 708 million for Q1 2025, down 43.31% year-over-year, mainly due to weaker international oil tanker earnings amid market pressures.

• Revenue for Q1 2025 was RMB 5,753 million, a 4.01% decrease compared to Q1 2024.

• Net cash flow from operating activities decreased 29.96% year-over-year to RMB 1,029 million.

• Total assets stood at RMB 81,746 million as of March 31, 2025, up 0.87% from year-end 2024.

• The company is optimizing its tanker fleet with new methanol-ready and dual-fuel vessels and expanding its LNG carrier fleet.

Financial highlights

• EBITDA for Q1 2025 was RMB 2,286 million, down 17.79% year-over-year.

• Basic and diluted EPS were RMB 0.1483, down 43.3% year-over-year.

• Gross profit margin for the oil tanker segment was 17.49%, down 12.56 percentage points year-over-year.

• Net profit from the LNG shipping sector grew 58.7% sequentially and 12.3% year-over-year to RMB 200 million.

• Net cash flows from investing and financing activities were negative, with a net decrease in cash and cash equivalents of RMB 449 million during the quarter.

Outlook and guidance

• Tanker market fundamentals remain positive, with crude tanker rates supported by capacity constraints and OPEC production increases.

• Global oil production and consumption are projected to grow through 2026, driving ton-mile demand.

• Limited newbuilding shipyard capacity and aging global fleet support favorable market conditions.

• Five new VLCC vessels are expected to be delivered globally from April to December 2025.

• The company anticipates continued market pressure on international oil tanker earnings.