Fleet and Operations - As of June 30, 2023, the company operates a fleet of 154 oil tankers with a total deadweight tonnage of 22.42 million tons, maintaining the world's largest oil tanker fleet[7]. - The company has invested in 68 LNG vessels, all of which are project vessels, providing stable revenue; 42 of these vessels are operational with a total capacity of 7.03 million cubic meters[7]. - The company’s coastal oil transportation business serves as a safety cushion for operational performance, while international oil transportation provides strong cyclical flexibility[8]. - The company leverages its extensive marketing and service network to provide high-quality energy transportation services, capitalizing on China's position as the largest oil and gas importer[7]. - The company’s operational model includes spot market charters, time charters, and COA contracts, allowing for flexible and efficient service delivery[8]. - The fleet composition includes 170 operating oil tankers with a total deadweight tonnage of 2,341,000 tons and an average age of 11.2 years[45]. - The fleet includes 42 LNG vessels with a total capacity of 702,700 cubic meters and an average age of 5.9 years[45]. Financial Performance - In the first half of 2023, the company's main business revenue reached RMB 11.483 billion, an increase of 53.6% year-on-year[13]. - The company’s net profit attributable to shareholders was RMB 2.895 billion, a substantial increase of 1,530.67% year-on-year[13]. - The company reported a profit before tax of approximately RMB 3.94 billion, compared to RMB 435.65 million in the previous year, marking a substantial increase[86]. - Net profit for the period was approximately RMB 3.09 billion, significantly higher than RMB 343.58 million in the same period of 2022[86]. - The company’s profit attributable to equity holders for the six months ended June 30, 2023, was RMB 2,894,849,000, a significant increase from RMB 177,525,000 in the same period of 2022, representing a growth of approximately 1,533%[87]. - Total comprehensive income attributable to equity holders for the same period was RMB 3,459,893,000, compared to RMB 794,474,000 in 2022, marking an increase of about 335%[87]. - Basic earnings per share for the period was RMB 60.68, up from RMB 3.73 in the previous year, reflecting a growth of approximately 1,525%[87]. Revenue Breakdown - The global oil demand reached 102 million barrels per day, an increase of 2.2 million barrels per day year-on-year, with China accounting for 73% of the demand increase[9]. - The company’s LNG transportation business has entered a stable revenue phase as new vessels are put into operation, contributing to overall business growth[7]. - The transportation volume (excluding time charter) was 86.1688 million tons, a decrease of 3.3% year-on-year, while the transportation turnover increased by 0.5% to 267.393 billion ton-miles[13]. - International transportation revenue was RMB 8,430.37 million, showing a significant year-on-year increase of 85.9%, with a gross profit margin of 39.0%, up 41.2 percentage points[16]. - The group's foreign trade oil transportation revenue for the first half of 2023 was RMB 7,560 million, a 92.8% increase year-on-year, with a gross profit of RMB 2,833 million and a gross profit margin of 37.5%, up 48.3 percentage points[17]. - The LNG transportation segment contributed a net profit of RMB 403 million, an increase of RMB 21 million year-on-year, with the fleet size reaching 68 vessels by the end of the reporting period[19]. Costs and Expenses - Total operating costs for the main business amounted to RMB 7,051.44 million, reflecting a year-on-year increase of 7.5%[20]. - Fuel costs increased by 9.4% year-on-year to RMB 2,579.25 million, driven by higher fuel prices and increased turnover[21]. - Employee costs for the reporting period amounted to approximately RMB 1.736 billion, compared to RMB 1.683 billion in the same period of 2022, representing an increase of 3.2%[15]. - The group reported a financial expense of RMB 754,807,000 for the first half of 2023, compared to RMB 462,745,000 in the same period of 2022, reflecting an increase in financial costs[123]. - Interest expenses for the period were RMB 774,611,000, significantly higher than RMB 464,965,000 in 2022, reflecting a 67% increase[130]. Strategic Initiatives - The company has established strong strategic partnerships with major oil companies and independent refineries, enhancing its market influence and operational capabilities[7]. - The company is actively exploring synergies with its parent company, COSCO Shipping Group, to enhance resource integration and service offerings[7]. - The company plans to deepen cooperation with major international oil companies and expand into third-country markets to enhance overall fleet efficiency[18]. - The company has implemented six strategic measures to optimize operations and enhance profitability amid market volatility[13]. - The company is focusing on achieving net-zero emissions in shipping by exploring low-carbon and zero-carbon energy consumption potential and expanding its industrial chain[51]. - The company is accelerating its digital transformation with a customer-centric approach, including the pilot operation of blockchain electronic bills in energy transportation and optimizing digital financial management frameworks[51]. Debt and Liabilities - The company's net debt to equity ratio improved to 65% as of June 30, 2023, down from 77% at the end of 2022[29]. - The total debt amounted to RMB 28,864,548,000, while cash and cash equivalents were RMB 5,254,932,000, reflecting a 24% increase from the previous year[29]. - The total bank and other interest-bearing loans amounted to RMB 21,549,602,000 as of June 30, 2023, compared to RMB 20,746,728,000 as of December 31, 2022[177]. - The group had bank loans of RMB 15,447,558,000 secured by vessels as of June 30, 2023, compared to RMB 15,090,234,000 as of December 31, 2022, reflecting an increase of approximately 2.37%[38]. - The total liabilities for the LNG transportation segment increased to RMB 12,152,423,000 as of June 30, 2023, from RMB 10,505,909,000 as of December 31, 2022[125]. 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[72]. - The company has adopted the Corporate Governance Code as per the Listing Rules to ensure compliance and enhance shareholder value[78]. - The Audit Committee has reviewed the interim results and agreed with the accounting treatment adopted by the company[73]. - The company confirms that all directors, supervisors, and senior management have complied with the Standard Code during the reporting period[78]. Market Outlook - The global oil demand is projected to reach 102.1 million barrels per day in 2023, with China contributing 70% of the demand increase[46]. - The demand for crude oil shipping is forecasted to grow by 6.6% in 2023, while refined oil shipping demand is expected to increase by 11.9%[46]. - The global LNG trade volume is anticipated to reach 417 million tons in 2023, representing a 4% year-on-year growth[48]. - The group plans to focus on enhancing operational efficiency and optimizing global vessel positioning in the international oil transportation sector[49]. Shareholder Information - As of June 30, 2023, China Shipping Group holds approximately 44.23% of the company's shares, while COSCO Shipping holds about 62.06%[57]. - Citigroup Inc. holds 94,546,310 shares (7.29%) and BlackRock, Inc. holds 69,587,895 shares (5.37%) of the company as of June 30, 2023[57]. Employee and Management - The total employee count as of June 30, 2023, was 8,339, up from 7,821 a year earlier, indicating a growth in workforce[15]. - Key management personnel compensation totaled RMB 5,892,000, a slight decrease from RMB 6,009,000 in the previous year[198]. - The company has appointed a new Chief Legal Counsel effective June 30, 2023, following the resignation of the previous counsel[53].
中远海能(01138) - 2023 - 中期财报