COSCO Shipping Energy Transportation (01138) announces a profit, with an expected net profit attributable to the company's owners of approximately 3.96 billion yuan for the year, an increase of about 17.2% year-on-year.

COSCO Shipping Energy Transportation (01138) announced that the group is expected to achieve a net profit attributable to company owners of approximately 3.96 billion yuan for the year ending December 31, 2024. This is an increase of approximately 580 million yuan or about 17.2% compared to the restated net profit of approximately 3.38 billion yuan for the year ending December 31, 2023. The main reasons for the expected increase in net profit attributable to company owners for the year ending December 31, 2024 compared to the same period in 2023 are as follows: (1) In 2024, the international oil shipping market continued to be relatively prosperous and showed a trend of seasonal characteristics fading. According to data from the Baltic Exchange, taking the example of Very Large Crude Carriers (VLCC) on the Middle East-China route (TD3C), the average daily time charter equivalent (TCE) for the whole year was $34,896, a decrease of about 3% compared to the same period in 2023. In the first half of 2024, medium-sized oil tankers chose to detour due to the crisis in the Red Sea route, resulting in temporarily high product tanker rates; however, in the second half of 2024, as some crude oil capacity shifted to the product tanker transportation sector, product tanker rates quickly fell and continued to decline. The group accurately predicted market trends, deployed vessel capacity prudently, and ensured the overall operations of the tanker fleet continued to remain in a good condition. This includes focusing on core domestic transportation businesses, actively responding to the transit demand from foreign trade customers, strengthening the competitiveness and stability of the domestic market, implementing dynamic coordination between domestic and international trade and between black and white oils, paying attention to the different trends in various segmented markets, and ensuring the maximization of fleet profits through rational capacity allocation. Furthermore, the group deepened its global presence and market participation by focusing on capacity planning in key routes and regions, actively participating in pipeline transportation projects, and generating diversified operating income. (2) In 2024, the group's net income from non-recurring gains and losses such as disposal of vessels, government subsidies, expected losses, etc., is expected to be approximately 10 million yuan, while the restated net loss from non-recurring gains and losses for the same period in 2023 was approximately 750 million yuan.