COSCO Haineng (600026.SH) issued an announcement of the 2023 financial report performance forecast. During the period, the company is expected to achieve a net profit attributable to shareholders of listed companies of about 2.56 billion yuan, an increase of about 2.4 billion yuan compared with the same period last year, a year-on-year increase of about 1510.1%.
It is estimated that the net profit attributable to shareholders of listed companies will be 2.23 billion yuan, an increase of 2.09 billion yuan over the same period last year, an increase of 1367.1 percent.
COSCO SHIPPING Energy said that in the first half of 2023, the level of freight rates in the international oil transport market was strong amid extreme volatility. According to Baltic Exchange data, from January to June 2023, the average daily yield (TCE) of the global very large tanker (VLCC) Middle East-China route (TD3C) was $43,147/day, up about 562 percent from the same period last year. Rising Chinese oil demand and the contribution of US Gulf and Brazilian crude oil exports to long haul routes were the main drivers of high VLCC freight rates in the first half of 2023.
In other words, COSCO Shipping Energy Management Team to study market trends, flexible layout of global ship positions, timely capture regional market transaction opportunities, to achieve the overall fleet revenue improvement.
In terms of fleet data, according to Clarkson data, COSCO Marine Energy (excluding its subsidiary fleet) has a global fleet of 128 ships, with a comparable number of crude oil and product tankers, and its overall strength is far ahead of other tanker owners, ranking first in the world. It is also the world's largest tanker owner in terms of dwt. COSCO's tanker fleet (excluding its subsidiary fleet) totals 19.3 million dwt, ranking first in the world.
on the demand side, China's oil consumption will grow by 80-1.5 million barrels a day in 2023, a growth rate of 5%-10%, and is expected to grow by 40-500000 barrels a day in 2024. According to the IEA, EIA and OPEC forecasts, China's oil demand rebounded significantly in 2023 from 2022 and is the main contributor to the increase in global oil demand (40-60%). China's oil consumption growth is expected to slow in 2024, but there are still about 40-500000 bpd increments.
In addition, industry insiders pointed out that the tanker plate supply and demand pattern of the overall steady progress, although the short-term recession trading and off-season encounter OPEC + production headwinds, but the industry in the second half of the tanker Chinese demand and international demand recovery is full of confidence.
not only that, some analysts also pointed out that due to the continued impact of geopolitics and the conflict between Russia and Ukraine, international energy security is currently being disrupted, and the global energy market is becoming increasingly fragmented due to geopolitical developments. in an uncertain market, some shipping companies are expanding secretly and rapidly. According to data from the Xclusiv Shipbrokers, in the second-hand tanker trading market, MR tankers are the most popular. A total of 114 tankers have changed hands so far this year, accounting for about 30% of the total trading volume. This was followed by small tankers above 10000 dwt, Panamax/LR1 tankers and Afra/LR2 tankers, each accounting for about 15 per cent of total trade.
Einar Straume, a broker who the Cleaves Securities of the Norwegian investment bank, noted that tanker freight rates have stabilized at high levels and that more tankers are expected to appear in the future, with low orders keeping earnings high. At present, there is no indication that prices will fall again in the near future.
, it can be said that despite the energy transportation sector turmoil and black swan events, the market is still particularly active in the international tanker fleet sector. The "century of consolidation" of Frontline and Euronav is not yet over; from another dimension, for tanker owners, the more volatile the market, the more alive demand will be. With the arrival of extreme events such as El Niño, the energy crisis and energy opportunities will affect the market situation in 2023-2024.
Source: Shipping Industry