Cosco Shipping 1H net income S$2.63M

Cosco Shipping 1H net income S$2.63M

Cosco Shipping, a leading global shipping company, has reported its first half (1H) 2025 financial results, revealing a net income of S$2.63 million. The company has demonstrated resilience despite challenging market conditions, including geopolitical turbulence and environmental regulations.

The 1H 2025 results showed an underlying profit of US$21.9 million, a net profit of US$25.6 million, and EBITDA of US$121.5 million. This yielded a return on equity of 3% (annualised) with basic EPS of HK3.9 cents. The core business generated US$50.7 million before overheads, with average Handysize and Supramax daily time-charter equivalent (TCE) earnings of US$11,010 and US$12,230 per day respectively, representing a decrease of 7% and 11% compared to the same period in 2024. Despite the decrease in earnings, the company significantly outperformed the average Handysize and Supramax indices by US$2,320 per day and US$3,480 per day respectively, consistent with its usual high level of outperformance.

Cosco Shipping's financial position remains strong, with a positive cash position of US$66.4 million and available committed liquidity of US$549.9 million as at 30 June 2025. The company is debt-free on a net basis and has successfully concluded a new US$250 million syndicated sustainability-linked 7-year secured reducing revolving credit facility. This facility is linked to the company's carbon intensity (EEOI) and crew safety (LTIF) performance, demonstrating its commitment to sustainability and environmental, social, and governance (ESG) issues.

The company continues to focus on value creation and growth, with a strategy that includes acquiring modern second-hand vessels, selling older and less efficient vessels, placing additional low-emission vessel (LEV) newbuilding orders, taking newbuilding vessels on long-term charter with purchase options, and exploring accretive M&A opportunities. Cosco Shipping's fleet renewal and optimization efforts are aligned with its goal of preparing for a low-carbon future.

In the 1H 2025, the dry bulk market was constrained by seasonally slow conditions in the first quarter and heightened geopolitical turbulence. However, the market showed resilience, with total dry bulk tonne-miles reducing by -3% year on year, despite newbuilding deliveries outpacing demand growth. The company's Handysize and Supramax segments were directly impacted by port congestion in Brazil, where a record soybean crop and strong demand for imported fertilisers tied up a significant portion of the world’s geared bulk carrier fleet.

Cosco Shipping is also preparing for the upcoming IMO net-zero framework, which requires ships to gradually reduce their annual greenhouse gas fuel intensity. The company has already signed a MOU with The Hong Kong and China Gas Company (Towngas) to enhance its access to green methanol marine fuel and is studying designs for Handysize LEV newbuildings to transition to net-zero emission shipping.

References:

[1] https://megaproject.com/news/portandship/cosco-eyes-stake-in-2-3-billion-panama-canal-port-project
[2] https://www.hellenicshippingnews.com/pacific-basin-shipping-announcement-of-interim-results-for-the-six-months-ended-30-june-2025/