The shipping company COSCO SHIP ENGY (HKG: 01138) has issued a positive profit alert for the first half of 2026. The company, also known as Cosco Shipping Energy Transportation Co.,Ltd. (SHA: 600026), anticipates a significant rise in earnings.
According to the announcement, the company expects to report a net profit attributable to shareholders of approximately 4.5 billion yuan for the period from January 1 to June 30, 2026. This represents an increase of roughly 2.6 billion yuan, or about 141%, compared to the 1.87 billion yuan reported for the same period last year.
The forecast for adjusted net profit, which excludes non-recurring gains and losses, is around 4.4 billion yuan. This marks an increase of approximately 2.6 billion yuan, or a 148% year-on-year growth, from the 1.77 billion yuan recorded in the first half of 2025.
Key Drivers of Growth
The company attributed the substantial profit growth primarily to the persistently strong conditions in the international oil tanker shipping market. During the first half of 2026, the global supply and demand dynamics for compliant tanker capacity remained tight.
This situation, combined with increased industry consolidation and geopolitical tensions that added a risk premium, collectively drove freight rates higher across the market. Rates for all major vessel types saw significant increases compared to the same period in 2025.
Market Performance Data
Data from the Baltic Exchange illustrates the sharp rise in earnings. For the first half of 2026, the average time charter equivalent (TCE) rate for the VLCC TD15 West Africa-China route was $117,773 per day, a 180% increase year-on-year.
Similarly, the average TCE for the TD22 US Gulf-China route reached $111,083 per day, representing a 170% increase compared to the previous year. These figures highlight the substantial gains on key long-haul crude oil shipping routes.
Operational Update
The company also noted that it has implemented contingency plans in response to changes in navigation conditions in the Strait of Hormuz. These measures are designed to ensure the safety of crew and cargo and to maintain stable business operations.
By late June 2026, all vessels that had been delayed in the area had safely departed from the strait.
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