On June 8, COSCO SHIPPING Energy (01138.HK) declined 3.03% in regular trading, trading at HKD 13.44 per share, with trading volume of HKD 111 million, extending the stock's recent pullback trend.
On the news front, the oil shipping market continues to face fundamental pressure. The VLCC segment is experiencing a significant supply-demand imbalance, with combined cargo volumes from March to May declining 54% year-over-year. Idle capacity in the Middle East has returned to the market, further weighing on freight rates. Meanwhile, routes from the US Gulf and West Africa to China have seen rates drop approximately 42% and 68% from recent highs respectively, as geopolitical premiums fade and vessel westward migration exacerbates supply gluts. Global crude oil seaborne exports contracted over 10% year-over-year during March and April.
Additionally, the company announced on June 2 that its subsidiary signed contracts to build four 175,000-cubic-meter LNG vessels with a total investment of RMB 6.445 billion. Combined with a prior RMB 1.018 billion VLCC capital increase and RMB 800 million LR2 lease contracts, the sustained capital expenditure expansion has raised market concerns regarding future cash flow adequacy during a shipping cycle downturn.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
Comments