Cosco Shipping Energy Transportation profit dips 29% despite volume increase

For the six months ended June 30, 2025, Cosco Shipping Energy Transportation reported a profit attributable to equity holders of RMB1.89 billion, a 29.0% decrease year-on-year. Total revenues from principal operations saw a slight decrease of 2.5% to RMB11.57 billion, while operating costs increased by 10.9% to RMB8.91 billion, leading to a 9.3 percentage point decline in gross profit margin. Despite these challenges, the group achieved a 13.1% increase in transportation volume and an 18.8% rise in transportation turnover (excluding time charters).

The company's net cash generated from operating activities decreased by 17% to RMB3.08 billion. Capital commitments for vessel construction and purchases amounted to RMB19.31 billion. As of June 30, 2025, the group's net debt-to-equity ratio improved to 75% from 78% at year-end 2024, primarily due to an increase in cash and bank balances to RMB7.66 billion.

The international oil shipping market experienced fluctuations, with VLCC freight rates declining by 2% year-on-year on the TD3C route. The LNG shipping segment, however, contributed RMB424 million to the profit attributable to equity holders, an increase of 5.7%. The group also reported an increase in LPG shipping revenue by 26.5% to RMB140 million.