COSCO Shipping Energy Q1 2026 Net Profit Soars 207% to RMB 2.17 Billion on Robust Oil-Tanker Market

Bulletin Express04-27

COSCO SHIPPING Energy Transportation Co., Ltd. reported a sharp earnings acceleration for the three months ended 31 March 2026, as buoyant international tanker rates and lean-cost execution propelled net profit attributable to shareholders to RMB 2.17 billion, up 206.74% year on year.

Revenue climbed 26.92% to RMB 7.30 billion, while gross profit tripled to RMB 2.95 billion, lifting gross margin to 40.4% from 17.0% a year earlier. Basic earnings per share reached RMB 0.3977, and return on equity (weighted average) widened by 2.65 percentage points to 4.58%.

Oil-tanker operations remained the core earnings driver. Segment revenue rose 28.3% to RMB 6.38 billion and gross profit margin expanded to 42.2% (+24.7 ppts). Within this, international crude shipping gross profit surged 317.6% to RMB 2.24 billion, aided by VLCC Time Charter Equivalent (TCE) rates that averaged USD 220,200 per day on the Middle East–China TD3C route, up 459% year on year. Domestic oil shipping gross profit grew 34.9% to RMB 0.45 billion.

The LNG shipping segment delivered RMB 0.73 billion in revenue (+18.8%) and contributed RMB 0.24 billion in net profit (+16.5%), supported by long-term charter contracts shielding earnings from market volatility. LPG shipping generated RMB 24 million in gross profit (+60.4%), while chemical transportation posted RMB 12 million (-17.7%).

Operating cash flow strengthened to RMB 3.77 billion, up 262.24%, reflecting higher freight income and accelerated collections. Despite RMB 4.00 billion of capital expenditure, cash and cash equivalents increased to RMB 15.07 billion. The balance sheet remained solid with total assets of RMB 94.45 billion (+2.58% versus year-end 2025) and net assets attributable to shareholders of RMB 48.21 billion (+3.90%). The liability-to-asset ratio stood at 45.6%.

Management highlighted that while international tanker demand and constrained fleet supply underpinned record spot earnings, geopolitical tensions—particularly the February conflict affecting the Strait of Hormuz—introduce freight-rate volatility. The group responded with flexible route adjustments and capacity deployment to safeguard service continuity and vessel safety.

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