COSCO SHIPPING Energy Transportation (1138) Q1 2026 earnings summary

Executive summary

• Net profit attributable to shareholders reached RMB 2,173 million in Q1 2026, up 206.74% year-over-year, with revenue rising 26.92% to RMB 7,303 million, driven by strong international oil shipping and effective management.

• EBITDA increased 87.65% year-over-year to RMB 4,294 million.

• Gross profit surged 202.4% year-over-year, reflecting high freight rates and operational efficiency.

• Fleet optimization included newbuild orders and disposal of older vessels, enhancing operational efficiency.

• Market volatility due to Middle East conflict impacted tanker routes and freight rates.

Financial highlights

• Operating expenses decreased by 7.76% year-over-year, supporting margin expansion.

• Gross profit from international oil shipping reached RMB 2,241 million; domestic oil shipping contributed RMB 450 million.

• Net cash provided by operating activities surged 262.24% year-over-year to RMB 3,766 million.

• Debt-to-asset ratio improved to 45.6% from 46.1% at year-end 2025.

• Basic EPS was RMB 0.3977, up 167.8% year-over-year.

Outlook and guidance

• Ongoing fleet expansion with significant capex planned: RMB 3,915 million in Q2-Q4 2026, and over RMB 9 billion annually in 2027 and 2028.

• LNG carrier fleet expected to grow, supporting long-term income stability.

• Tight newbuilding capacity and high global fleet age suggest moderate vessel deliveries and scrapping potential.

• Market outlook remains favorable, with risk premiums and supply-demand imbalances supporting freight rates.

• The company will focus on flexible route adjustments and dynamic capacity allocation amid ongoing uncertainty.