COSCO Shipping Energy to issue A-shares, raising funds for fleet expansion

COSCO Shipping Energy Transportation Co., Ltd. is moving forward with a non-public issuance of A-shares in 2025, following approval from the Shanghai Stock Exchange and registration consent from the China Securities Regulatory Commission (CSRC). Guotai Haitong Securities Company Limited will serve as the sponsor and lead underwriter for this offering, which aims to raise up to 800,000 yuan to fund the construction of six VLCCs, two LNG carriers, and three Aframax crude oil tankers. This move is expected to optimize the company’s fleet structure, expand its LNG capacity, and enhance its competitive edge in both domestic and international oil and gas transportation.

The issuance involves up to 1,431,232,918 A-shares, representing 30% of the company’s total share capital before the issuance. China COSCO Shipping Corporation Limited, a controlling shareholder, has pledged to subscribe to 50% of the issued shares. This transaction is considered a related-party transaction, with the pricing determined through a competitive bidding process, ensuring compliance with relevant regulations.

The company's latest half-year report for 2025 indicated a 32.24% decrease in net profit attributable to parent company shareholders after non-recurring gains and losses, primarily due to lower freight rates for foreign trade product oil tankers and pressure on domestic trade product oil shipping volume. Despite this, the company's operational status remains stable, and the proceeds from this issuance are intended to support long-term strategic investments and operational enhancements.