COSCO SHIP ENGY expects H1 net profit to surge 141% to RMB 4.5B

COSCO SHIP ENGY expects H1 net profit of about RMB 4.5 billion, up 141% from a year earlier, as freight rates surged across all vessel segments.

"The increase was mainly attributable to freight rates across all vessel segments in the first half being significantly higher than the corresponding period of 2025," the company said in a filing.

The group used its global vessel positioning network to adjust operating routes for different vessel types, adapting to shifts in international oil trade flows caused by strait navigation disruptions. The restated net profit for the same period last year was about RMB 1.87 billion. The company did not disclose revenue or earnings per share figures in the preliminary announcement.

The profit surge positions COSCO SHIP ENGY to benefit from sustained disruption to traditional shipping routes. Investors will watch for interim dividend announcements and any guidance on H2 freight rate trends when the company releases full results.

The shipping sector has seen a structural shift in trade flows as geopolitical tensions disrupt key maritime chokepoints. Rival tanker operators including Frontline and Euronav have also reported elevated earnings as vessel supply tightens and ton-mile demand increases. The Baltic Exchange's dirty tanker index, a benchmark for crude oil shipping rates, has climbed about 40% this year, reflecting the rerouting of vessels away from the Red Sea and other contested waterways.

Shares of COSCO SHIP ENGY fell 1.2% on Friday ahead of the announcement, with short selling accounting for 9.2% of turnover. The stock has gained about 18% year to date, outperforming the Hang Seng Index's 5% advance. The company has a market value of about HK$53 billion, making it one of the largest listed tanker operators in Asia.

This article is for informational purposes only and does not constitute investment advice.