COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK) Bundle
COSCO SHIPPING Energy Transportation Co., Ltd. began life in 1994 as Shanghai Haixing Shipping Co., Ltd., was renamed China Shipping Development in 2005 and-after the 2016 merger of China Ocean Shipping Company and China Shipping (Group) Company-emerged as the current group now listed on the Hong Kong Stock Exchange as 1138.HK, backed by parent COSCO Shipping Corporation Limited and serving more than 200 domestic and international customers; in 2024 the company delivered its best post‑merger result with a net profit attributable to shareholders of RMB 4.037 billion (up 19.4% year‑on‑year), while its business model spans oil tanker, LNG, LPG and chemical transportation plus terminals and storage, operating the world's largest oil tanker fleet by capacity and the world's fourth‑largest LNG carrier fleet by invested capacity-as of December 31, 2024 it owned and controlled 159 tankers totaling 23.74 million DWT with another 12 tankers (2.36 million DWT) on order, had invested in 87 LNG carriers (15.05 million cbm) with 50 in operation and one bareboat chartered‑in (174,000 cbm), plus eight chemical tankers (~73,000 DWT) and eleven LPG tankers (~43,000 cbm; orders include six LNG/methanol dual‑fuel VLCCs placed in November 2024 and two methanol dual‑fuel Aframax/LR2s in February 2025); 2024 segment results show foreign‑trade tanker transportation revenue of RMB 14.574 billion with gross profit RMB 3.586 billion (gross margin 24.6%), domestic tanker revenue RMB 5.909 billion with gross profit RMB 1.475 billion (margin 25.0%), LNG net profit attributable RMB 811 million, LPG revenue RMB 206 million with gross profit RMB 52 million (margin 25.2%) and chemical revenue RMB 314 million with gross profit RMB 53 million (margin 16.9%), while strategic priorities include green fuel adoption, digitalization (AI Navigation Safety Systems on 70+ vessels and a Digital Smart Ship Lifecycle Platform), an ESG Management Office, the group's first ESG‑linked loan and selection in the UNGC's "20 Case Examples for 20 Years" sustainability reports-details below explain how this fleet, asset mix and integrated global network turn cargoes into revenue and competitive advantage.
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK): Intro
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK) is a China-based international tanker operator focused on crude oil and refined petroleum product transportation, ship management and related shipping services. The company traces its roots to 1994 and expanded significantly after a major state-owned shipping group merger in 2016. In 2024 the company reported its strongest post-merger performance, with material improvements in profitability.
- Founded: 1994 (established as Shanghai Haixing Shipping Co., Ltd.)
- Rebranded: 2005 (China Shipping Development Co., Ltd.)
- Current name & structure: 2016 (renamed COSCO SHIPPING Energy Transportation Co., Ltd. following the merger of China Ocean Shipping Company and China Shipping (Group) Company)
- 2024 performance highlight: Net profit attributable to shareholders - RMB 4.037 billion (up 19.4% year-on-year)
| Metric | Value | Notes |
|---|---|---|
| Established | 1994 | Founded as Shanghai Haixing Shipping Co., Ltd. |
| Major rebrand | 2005 | China Shipping Development Co., Ltd. |
| Merger & current name | 2016 | Post-merger renaming to COSCO SHIPPING Energy Transportation Co., Ltd. |
| Net profit attributable (2024) | RMB 4.037 billion | Best performance since 2016 merger; +19.4% YoY |
Ownership & Corporate Structure
- State-linked majority ownership through COSCO SHIPPING Group (central SOE parent after 2016 consolidation).
- Listed entity: Hong Kong Stock Exchange (1138.HK) with public float held by institutional and retail investors.
- Governance: Board and management aligned with group strategy for fleet optimization, asset-light opportunities and participation in SOE shipping policy initiatives.
Core Business & How It Works
- Primary operations: Time-charter and voyage-charter of crude oil tankers (VLCCs, Suezmax, Aframax) and product tankers; ship-owning and ship-management services.
- Revenue drivers: Freight rates (spot and contract), time-charter utilization, vessel operating efficiency, and charter contract mix.
- Operational levers: Fleet deployment, chartering strategy (fixed-term vs. spot), bunker cost management, technical management to control opex and off-hire risk.
- Ancillary services: Ship repairs, technical management fees, and cooperation within COSCO SHIPPING Group for cargo flow and terminal access.
How COSCO SHIPPING Energy Transportation Makes Money
- Time-charter income - stable contract revenue when vessels are leased to charterers for a fixed period.
- Voyage-charter income - spot and voyage contracts pay per-trip freight depending on route and market rates.
- Asset appreciation and sale - selective disposal or replacement of vessels to realize capital gains or renew fleet with more efficient ships.
- Technical & management fees - revenue from managing third-party tonnage and related services.
For detailed investor-focused context, see: Exploring COSCO SHIPPING Energy Transportation Co., Ltd. Investor Profile: Who's Buying and Why?
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK): History
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK) is the energy-transport arm of the COSCO Shipping Group, focused on crude oil, refined petroleum products and LNG/semi-LNG transportation. The company is publicly listed on the Hong Kong Stock Exchange and has developed through state-driven consolidation of Chinese shipping assets into a global tanker platform.
- Listed entity: Hong Kong Stock Exchange ticker 1138.HK, providing public-market liquidity and disclosure.
- Parent ownership: a majority stake is held by COSCO Shipping Corporation Limited (the state-controlled COSCO Shipping Group), enabling strategic alignment and access to group resources and charters.
- Strategic role: consolidated within COSCO Shipping Group to strengthen global energy-transport capabilities and capture scale economics across trades and vessel types.
Key operational and financial context (indicative company profile):
| Metric | Typical Value / Positioning |
|---|---|
| Major shareholder | Parent: COSCO Shipping Corporation Limited - majority/state-related ownership (strategic control) |
| Listing | Hong Kong Stock Exchange (1138.HK) - subject to HKEX disclosure & corporate governance rules |
| Fleet composition | Operates a mix of VLCCs, Suezmax, Aframax and product tankers (over 100 vessels across crude and product trades) |
| Geographic footprint | Global trades with concentration on Asia-Europe, Middle East-Asia and long-haul crude routes |
| Revenue drivers | Voyage chartering, time chartering, pool operations and related logistics/terminal services |
- Ownership benefits: access to COSCO Group's commercial network, preferred cargo flows from state and corporate clients, and ability to coordinate fleet deployment with group affiliates to optimize voyage economics.
- Capital markets link: public listing enables equity and bond financing options to support fleet renewal, long-term charters and LNG/tanker newbuild investments.
- Strategic consolidation: the ownership structure reflects the group's objective to centralize energy shipping under a focused listed vehicle to capture scale, reduce intra-group competition and improve transparency for minority investors.
For a fuller treatment of the company's background, ownership, mission and how it monetizes its assets see: COSCO SHIPPING Energy Transportation Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK): Ownership Structure
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK) positions itself as a one-stop energy transportation solution provider serving more than 200 domestic and international customers, with a declared focus on safety, reliability, innovation and green transition. The company operates the world's largest tanker fleet by capacity and covers all major tanker types (VLCC, Suezmax, Aframax/LR2, Panamax/LR1, MR).- Mission: Provide all-ship, all-weather, customized energy transportation and value-added services with 24/7 uninterrupted logistics.
- Sustainability: Selected in 2024 as one of the UNGC's "20 Case Examples for 20 Years" corporate sustainability case reports.
- Safety & Reliability: Operates a global tanker fleet spanning VLCC to MR designs, emphasizing operational safety and fleet resilience.
- Innovation & Decarbonization: Developer of the LNG dual-fuel VLCC 'Yuan Rui Yang' (≈30% CO₂ reduction vs. conventional fuel oil); ordered six LNG/methanol dual-fuel VLCCs in Nov 2024 and two methanol dual-fuel Aframax/LR2 tankers in Feb 2025.
- Customer-centricity: Diversified cargo, customer and route base; continuous service and customized solutions for more than 200 clients.
| Ownership / Holder | Role / Notes |
|---|---|
| China COSCO SHIPPING (state group and affiliates) | Strategic/controlling state shareholder providing industrial backing and shipping integration |
| Public Float (HK market - institutional & retail) | Shares traded under 1138.HK; liquidity and market pricing driven by Hong Kong investors |
| Management & Employees | Operational leadership and incentives aligned with fleet performance and sustainability targets |
| Other strategic partners | Charterers, shipyards and fuel/energy suppliers engaged in long-term contracts and newbuilding orders |
- Core income: Time-charter and voyage-charter earnings from crude and product tankers, long-term contracts and spot market exposure.
- Fleet utilization: Revenue driven by fleet size, vessel utilization rates, charter rates and fuel/operational efficiency (including fuel-switch and dual-fuel technologies to reduce costs and emissions).
- Value-added services: 24/7 logistics management, customized transportation solutions, and integrated services for major oil companies and traders.
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK): Mission and Values
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK) is a leading integrated energy shipping and logistics provider with core capabilities across crude oil, LNG, LPG, and chemical transportation, plus terminal and storage management. Its strategic integration of shipping, terminals, and storage enables end-to-end logistics and resource synergy across global energy supply chains. See the company's guiding principles here: Mission Statement, Vision, & Core Values (2026) of COSCO SHIPPING Energy Transportation Co., Ltd. How It Works- Business portfolio: oil tankers, LNG carriers, LPG carriers, chemical tankers, terminals, and storage management-providing integrated logistics solutions from loading to delivery.
- Fleet and capacity management: combines owned, controlled, chartered-in, and vessels on order to match market demand and route optimization.
- Commercial operations: global marketing, voyage planning, bunker procurement, chartering, and freight rate hedging to optimize revenue and reduce operating risk.
- Operational resilience: global security and emergency response system plus regional customer service centers to ensure continuity and safety.
| Segment | Number of Vessels (owned/controlled) | Total Capacity | Additional on Order / Chartered |
|---|---|---|---|
| Oil Tankers | 159 | 23.74 million DWT | 12 tankers (2.36 million DWT) on order |
| LNG Carriers | 87 invested (50 in operation + 1 bareboat chartered-in) | 15.05 million m³ total capacity | 1 bareboat chartered-in LNG carrier (174,000 m³) |
| Chemical Tankers | 8 | ~73,000 DWT | - |
| LPG Tankers | 11 | ~43,000 m³ | - |
- World's largest oil tanker fleet by capacity.
- World's fourth-largest LNG carrier fleet by invested capacity.
- Customer service and commercial network across: Shanghai, Dalian, Beijing, Guangzhou, Hong Kong, Singapore, the U.S., the U.K., Japan, and South America.
- Global security and emergency response capabilities to support crisis management and operational continuity.
- Voyage charter revenue: spot and period charters for crude, refined products, LNG, LPG, and chemicals-rates linked to global tanker and gas freight markets.
- Time charter income: fixed-period charters providing stable cash flow and utilization optimization.
- Terminal and storage services: fees for terminal throughput, storage leasing, blending, and ancillary port services-enhancing margin capture along logistics chain.
- Asset management and trading: asset sales, vessel recycling, charter restructuring, and commercial optimization to realize capital value.
- Integrated solutions premium: bundled shipping + storage + terminal contracts for large energy producers, utilities, and traders commanding higher-margin integrated services.
| Metric | Value |
|---|---|
| Total tankers owned/controlled | 159 |
| Total tanker capacity | 23.74 million DWT |
| Tankers on order | 12 (2.36 million DWT) |
| LNG carriers invested | 87 (15.05 million m³) |
| LNG carriers in operation | 50 + 1 bareboat chartered-in (174,000 m³) |
| Chemical tankers | 8 (~73,000 DWT) |
| LPG tankers | 11 (~43,000 m³) |
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK): How It Works
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK) operates as a large integrated tanker and gas carrier platform, transporting crude oil, product oil, LNG, LPG, chemicals and other bulk liquid hazardous cargo for over 200 domestic and international customers. Its business model monetizes vessel capacity, long-term charters, spot market voyages, and integrated logistics services across international trade lanes and China's coastal network.- Core revenue sources: time-charter and voyage-charter tanker operations, LNG and LPG transportation contracts, chemical tanker services, and related ship management and bunkering coordination.
- Customer base: state-owned refiners, international oil majors, traders, gas buyers, petrochemical companies and utility customers across Asia, Europe, Africa and the Americas.
- Fleet economics: mix of owned, long-term chartered and short-term chartered vessels to optimize utilization, manage capital intensity and balance market exposure.
| Segment | 2024 Revenue (RMB) | 2024 Gross Profit (RMB) | Gross Profit Margin | Notes |
|---|---|---|---|---|
| Foreign Trade Tanker Fleet | 14,574,000,000 | 3,586,000,000 | 24.6% | Mainly crude and product oil international voyages |
| Domestic Tanker Fleet | 5,909,000,000 | 1,475,000,000 | 25.0% | Coastal and domestic trade lanes within China |
| LNG Transportation | - (consolidated contribution) | Net profit attributable to shareholders: 811,000,000 | - | Net profit increased 2.66% YoY on like-for-like basis |
| LPG Fleet | 206,000,000 | 52,000,000 | 25.2% | Smaller but high-margin niche trades |
| Chemical Fleet | 314,000,000 | 53,000,000 | 16.9% | Higher handling complexity and compliance costs |
- Fleet utilization and voyage productivity - maximizing days on hire and optimizing ballast legs.
- Charter mix - shifting between time charters for stable revenue and spot voyages to capture market upswings.
- Fuel and voyage cost management - fuel procurement, slow-steaming and voyage planning to reduce consumption per ton-mile.
- Long-term shipping contracts and LNG project linkages that provide predictable cash flows and support financing for new assets.
- Foreign trade tanker transportation revenue: RMB 14.574 billion; gross profit RMB 3.586 billion; gross margin 24.6%.
- Domestic tanker transportation revenue: RMB 5.909 billion; gross profit RMB 1.475 billion; gross margin 25.0%.
- LNG transportation segment net profit attributable to shareholders: RMB 811 million, +2.66% YoY (like-for-like).
- LPG fleet transportation revenue: RMB 206 million; gross profit RMB 52 million; gross margin 25.2%.
- Chemical fleet transportation revenue: RMB 314 million; gross profit RMB 53 million; gross margin 16.9%.
- Contract diversification across crude, products, gas and chemicals to reduce commodity-cycle correlation.
- Asset renewal and eco-design investment to meet emissions regulations and improve fuel efficiency.
- Group synergies within COSCO SHIPPING for chartering, ship management and commercial networks.
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK): How It Makes Money
COSCO SHIPPING Energy generates revenue primarily by providing sea transportation of crude oil, refined oil products and liquefied gas (LNG/methanol), time-chartering and voyage-chartering of tankers and LNG carriers, and related logistics and marine services. Its market position-operating the world's largest tanker fleet by capacity and the world's fourth-largest LNG carrier fleet by invested capacity-drives scale advantages, long-term contract opportunities and bargaining power with charterers and cargo owners.- Core revenue streams: voyage and time charter income from VLCCs, Suezmax, Aframax, LR2s and LNG carriers; freight and storage services; bunkering-related services and technical/management services to third parties.
- Value drivers: large owned/operated fleet, long-term charter contracts, integrated global hub network, fuel-efficient and dual-fuel newbuilds, and digital/operational efficiency gains that reduce voyage costs and off-hire time.
| Metric | Figure / Note |
|---|---|
| Global tanker fleet ranking | World's largest by capacity |
| LNG carrier ranking (invested capacity) | 4th largest |
| Dual-fuel newbuild orders | 6 LNG/methanol dual-fuel VLCCs (Nov 2024); 2 methanol dual-fuel Aframax & LR2 (Feb 2025) |
| AI & digital deployment | AI Navigation Safety Systems on 70+ vessels; Digital Smart Ship Lifecycle Platform launched |
| ESG financing | First ESG-linked loan secured; first-year sustainability targets on CO₂ and NOx met |
- Operational model: owning, long-term chartering, and commercial management of tankers and LNG carriers-mix of spot, period and time-charter contracts to balance revenue volatility and asset utilization.
- Cost/leverage model: revenue stability from long-term contracts and charter-insulating strategies, while investing in fuel-efficient newbuilds and retrofits to lower OPEX and regulatory compliance costs.
- Fleet leadership and scale enable preferential access to major cargo flows and large energy producers/consumers.
- Green transition: investment in dual-fuel VLCCs and product tankers (methanol/LNG-capable) reduces future fuel risk and opens new market segments tied to cleaner marine fuels.
- Digital/safety initiatives: AI Navigation Safety Systems across 70+ vessels and the Digital Smart Ship Lifecycle Platform target reduced incidents, lower insurance/repair costs, and higher utilization.
- ESG integration: establishment of an ESG Management Office and achievement of first-year ESG-linked loan targets signal lower financing costs and alignment with institutional investor preferences.
- Strategic priorities: enhance global hub networks, improve operational efficiency, accelerate digital transformation, and strengthen risk management and safety protocols to sustain long-term shareholder value.
COSCO SHIPPING Energy Transportation Co., Ltd. (1138.HK) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.