Cosco Shipping Energy reports Q3 results, proposes major VLCC charter

COSCO Shipping Energy Transportation Co., Ltd. reported a net profit attributable to shareholders of RMB2.72 billion for the first nine months of 2025, a 21.2% year-on-year decrease, with the decline narrowing. The third quarter alone saw a net profit of RMB850 million, up 4.4% from the third quarter of 2024. Total assets reached RMB82,044,451,268.19 as of September 30, 2025, an increase of 1.24% from December 31, 2024.

Concurrently, the company proposes to enter a Charter Party with Hainan COSCO SHIPPING Development, a connected person, to lease six 307,000-ton VLCC crude oil tankers with dual methanol+LNG fuel capability. The lease term for each vessel is 240 months ± 90 days, commencing from delivery between April 30, 2027, and November 30, 2028. The annual rent for the six vessels is expected to range between RMB296 million and RMB427 million (excluding taxes and fees).

The proposed charter involves both fixed and variable lease payments. Fixed payments average RMB134,871 per vessel per day (exclusive of tax). Variable lease payments for three vessels are linked to the TD3C-TCE, with a maximum annual amount of approximately RMB131 million. This transaction is categorized as a discloseable and connected transaction, requiring shareholder approval due to the right-of-use assets exceeding 5% of applicable percentage ratios.