COSCO SHIPPING Energy Transportation (1138) Q3 2024 earnings summary

Executive summary

• Net profit attributable to shareholders for Jan–Sep 2024 was RMB 3,415 million, down 8.05% year-over-year.

• Revenue for the first nine months of 2024 increased 3.68% year-over-year to RMB 17,144 million.

• Q3 2024 revenue rose 10.76% year-over-year to RMB 5.49 billion, with net profit for the quarter down 10.93% to RMB 808 million.

• Declared a half-year cash dividend of RMB 0.22 per share.

• Continued integration of energy and chemicals logistics supply chain, including major equity acquisitions and management entrustments.

Financial highlights

• EBITDA for Jan–Sep 2024 was RMB 7,970 million, down 4.29% year-over-year.

• Net cash provided by operating activities was RMB 5,762 million, down 11.83% year-over-year.

• Total assets as of September 30, 2024, were RMB 75,187 million, up 4.31% from year-end 2023.

• Basic EPS for Jan–Sep 2024 was RMB 0.7158, down 8.05% year-over-year.

• Net assets attributable to shareholders reached RMB 35,980 million, up 4.61% from year-end 2023.

Outlook and guidance

• Market expects steady growth in global oil production and consumption, supporting ton-mile demand.

• VLCC and LR2 time charter equivalent rates increased 4.2% and 44.9% year-over-year, respectively, for Jan–Sep 2024.

• Downward pressure on freight rates is expected due to refinery maintenance and OPEC output cuts, with some crude tankers shifting to product tanker markets.

• Global LPG and chemical seaborne trade projected to grow moderately through 2029, with strong demand for ammonia and ethane.

• Limited newbuilding orders and aging fleet suggest continued supply-side support for tanker rates.