Movement Alert|COSCO SHIP ENGY Rises 3.11% in Regular Trading, Middle East Geopolitical Escalation Drives Oil Tanker Rate Surge

Market Focus
Yesterday

On September 9, COSCO SHIP ENGY rose 3.11% in regular trading, trading at HKD 18.58/share, with turnover of HKD 106 million.

On the news front, Middle East geopolitical tensions escalated sharply over the weekend. Explosions were reported near Iran's Kharg Island, a critical hub for Iranian crude oil exports, while a Saudi oil tanker was intercepted in the Strait of Hormuz. Brent crude surged over 3% to above $90/barrel, fueling a rally in oil shipping names. VLCC time-charter equivalent (TCE) rates on Middle East routes have spiked to approximately $700,000/day, reaching historic extremes, while US Gulf and West Africa routes climbed to $210,000-$220,000/day.

As one of the world's largest energy shipping service providers, the company reported first-half revenue of approximately RMB 15.146 billion, up 30.03% year-over-year, with net profit attributable to shareholders of approximately RMB 4.545 billion, surging 143.21% year-over-year. The board also approved a mid-year dividend of RMB 0.28 per share and a capital increase of RMB 980 million for the construction of four VLGCs, positioning the company to capitalize on the ongoing upcycle in oil transportation.

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