Fleet and Operations - As of June 30, 2022, the company operated a fleet of 161 oil tankers with a total deadweight tonnage of 23.65 million tons, maintaining the largest oil tanker fleet globally[7]. - The company has invested in 49 LNG vessels, all of which are project vessels, providing stable revenue, with 38 vessels already in operation and a total capacity of 6.42 million cubic meters[8]. - The company is a leader in China's LNG transportation industry and a significant player in the global LNG market, benefiting from strong demand for oil and gas imports in China[8]. - The company's coastal oil transportation business serves as a safety cushion for operational performance, while international oil transportation provides strong cyclical flexibility[10]. - The company’s fleet covers all major oil tanker types, ensuring comprehensive service offerings to clients[7]. - The company has expanded its LNG fleet to 49 vessels, enhancing its operational capacity in the LNG transportation sector[22]. Financial Performance - The main business revenue reached RMB 7.475 billion, representing a year-on-year increase of 23.0%[16]. - Net profit attributable to shareholders was RMB 178 million, a decrease of 69.5% compared to the previous year[16]. - The average daily earnings for the TD3C route (Middle East to China) was -$9,334, marking a historical low due to oversupply and high fuel prices[12]. - The group’s fleet consisted of 161 oil tankers with a total capacity of 23.65 million deadweight tons, a decrease of 5 vessels and 1.59 million deadweight tons from the end of 2021[16]. - The company’s total revenue for the first half of 2022 reached RMB 7,474.98 million, an increase of 8.3% year-on-year[19]. - The total profit before tax for the period was RMB 435,647,000, a significant decrease from RMB 875,208,000 in the previous year, reflecting a decline of approximately 50.3%[121]. Costs and Expenses - The main business cost was RMB 6.851 billion, up 32.8% year-on-year, leading to a decrease in gross margin by 6.8 percentage points[16]. - Fuel costs increased by 62.9% year-on-year to RMB 2,358,562,000 due to rising oil prices influenced by the Russia-Ukraine conflict[24]. - Crew costs rose by 32.1% year-on-year to RMB 1,098,384,000, primarily due to market conditions and increased pandemic-related expenses[24]. - Charter costs surged by 89.7% year-on-year to RMB 850,886,000, driven by higher demand in the oil transportation sector[24]. - The total operating cost for the first half of 2022 was RMB 6,851.13 million, reflecting a year-on-year increase of 23.0%[19]. Strategic Initiatives - The company has established strategic partnerships with major oil companies and independent refineries, enhancing its business development and value creation capabilities[8]. - The company aims to transition towards being a resource integrator and solution provider in the energy transportation sector[8]. - The group implemented six strategic measures to enhance operational efficiency and prepare for future recovery in a volatile oil transportation market[16]. - The company plans to enhance customized services for global customers, ensuring a stable energy supply chain and optimizing operational capacity[54]. - The company will enhance its compliance and risk control systems to ensure stable fleet operations and effective pandemic response measures[55]. Market Outlook - The company expects a 6.2% increase in crude oil tanker demand and a 4.6% increase in supply for 2022, with VLCC demand increasing by 5.9%[50]. - The company anticipates that the international oil transportation market will see a recovery in the second half of 2022, driven by the restructuring of oil trade due to the decoupling of Europe from Russian oil[50]. - Domestic oil transportation demand is expected to stabilize, with increased transportation needs from major refining projects coming online in Q3[51]. - Global LNG trade volume is expected to reach 392 million tons in 2022, a year-on-year increase of 5.4%[52]. Financial Position - The total debt increased to RMB 27,899,630,000, resulting in a net debt-to-equity ratio of 78% as of June 30, 2022, up from 73% at the end of 2021[32]. - The company's total liabilities increased significantly, reflecting a strategic approach to leverage for growth and expansion in the energy transportation sector[36]. - The company reported a total comprehensive income of RMB 1,149,365 thousand for the period, compared to RMB 980,346 thousand in 2021[96]. - The total assets as of June 30, 2022, amounted to RMB 63,053,183 thousand, an increase from RMB 59,388,937 thousand at the end of 2021[97]. - The company believes it can secure sufficient financing for normal operations and capital expenditure for at least the next twelve months[106]. Governance and Compliance - The company has established five specialized committees, including the Audit Committee, Compensation and Assessment Committee, Strategic Committee, Nomination Committee, and Risk Control Committee, to enhance governance[78]. - The company confirmed compliance with the Corporate Governance Code during the reporting period[84]. - The Audit Committee, consisting of three independent non-executive directors, reviewed the interim performance and agreed with the accounting treatment adopted by the company[79]. Employee and Management - As of June 30, 2022, the total number of employees was 7,821, an increase from 7,435 on June 30, 2021[16]. - Employee costs for the reporting period amounted to approximately RMB 1.683 billion, compared to approximately RMB 1.233 billion in the same period of 2021[16]. - The total salary, bonuses, and other allowances for key management personnel increased to RMB 6,009,000 from RMB 5,319,000, an increase of 13%[192]. Investments and Capital Expenditures - The company has invested approximately RMB 1.526 billion in shipbuilding and acquisition expenses in the first half of 2022[48]. - The company has capital commitments for shipbuilding and purchases amounting to RMB 8,293,277,000 as of June 30, 2022, compared to RMB 6,924,783,000 at the end of 2021[29]. - The company has ongoing shipbuilding projects funded through loans from non-controlling shareholders, indicating a focus on expanding its fleet capabilities[175]. Joint Ventures and Associates - The group’s joint ventures generated revenue of approximately RMB 1,452,000,000, with a net profit of RMB 739,000,000, representing a 7.2% increase year-on-year[25]. - The total value of investments in non-significant joint ventures increased to RMB 1,876,442,000 as of June 30, 2022, compared to RMB 1,398,458,000 at the end of 2021[152]. - The company received dividends from associates amounting to RMB 200,000,000, down from RMB 240,000,000 in the previous year[144].
中远海能(01138) - 2022 - 中期财报