Cosco Shipping Energy to lease six VLCCs from connected company

Cosco Shipping Energy Transportation Co., Ltd. announced a discloseable and connected transaction where its wholly-owned subsidiary, Pan Cosmos, will lease six Very Large Crude Carriers (VLCCs) from Hainan Cosco Shipping Development, a connected person. The charter party, dated November 5, 2025, sets a lease term of 240 months ± 90 days for each vessel, with deliveries ranging from April 2027 to November 2028. These 307,000-ton VLCC crude oil tankers will feature dual methanol+LNG fuel capability.

The transaction, an asset acquisition under HKFRS 16, involves an estimated total of RMB4.78 billion for the fixed lease payments. The pricing terms, determined through a competitive bid process, include a hybrid rental structure with fixed and variable lease components, allowing for risk mitigation during market downturns. The annual rent for the six vessels after delivery is projected to be between RMB296 million and RMB427 million (excluding taxes and fees).

Shareholders' approval is required for the charter party and the proposed appointment of Ms. Ma Yuanru as a non-executive director at an extraordinary general meeting on December 23, 2025. Cosco Shipping and its associates, holding approximately 46.90% of the total issued share capital, will abstain from voting on the charter party resolution.