Financial Data and Key Metrics Changes - Total operating revenue for Q2 2025 remained steady at $85,500,000, consistent with the previous quarter [20] - Adjusted EBITDA increased to $56,500,000 from $53,400,000 in Q1 2025, reflecting a modest year-on-year growth [3][21] - Average Time Charter Equivalent (TCE) slightly decreased to $69,900 per day from $70,600 in Q1 2025 [20][21] - Net income for Q2 was CHF 11,900,000, an increase of CHF 2,800,000 compared to Q1 [23] Business Line Data and Key Metrics Changes - The delivery of new vessels, Cool Tiger and Gale Saga, contributed positively to EBITDA despite a challenging market [4] - The company has completed nine drydocks, with four including performance upgrades, leading to a decrease in average vessel operating expenses to $15,900 per day [23][24] Market Data and Key Metrics Changes - LNG supply is projected to increase by 2339% compared to 2024 volumes by 2026 and 2028, indicating a positive outlook for the LNG market [6] - Year-over-year storage levels stood at 76%, down from 90% in the previous year, affecting U.S. supply flow to Europe [7] Company Strategy and Development Direction - The company aims to maintain a disciplined approach to asset acquisitions, focusing on transactions that enhance long-term value [29] - The backlog of charters is expected to provide a healthy foundation against market volatility, with 50% of days covered until 2027 [19][29] Management's Comments on Operating Environment and Future Outlook - Management noted that while the immediate market backdrop is challenging, the macro picture remains positive, with expectations of a more balanced market by 2027 [12][29] - The company is optimistic about the gradual recovery of rates and the potential for increased demand as older steam turbine vessels exit the market [55][56] Other Important Information - The company has repurchased approximately 859,000 shares at an average price of $5.77 per share, reducing the total share count by 1.6% [28] - The average interest cost stands at around 5.6%, with approximately 75% of total notional debt hedged or fixed [25] Q&A Session Summary Question: Impact of recent liquefaction activity on charter market sentiment - Management indicated that recent positive news has started to focus attention on long-term shipping needs, although it is still early days [34] Question: Potential asset acquisitions - Management stated that they are always looking for acquisition opportunities but have nothing concrete at this time [35][36] Question: Return on investment for vessel upgrades - Management confirmed satisfaction with the returns from vessel upgrades, noting an investment of around $10,000,000 with current returns of $5,000 per day [42] Question: Scheduling of drydocking based on chartering environment - Management clarified that scheduling has not changed significantly, and they are pleased to have completed dry docks during a low-rate environment [44] Question: Status of LNG E upgrades - Four out of five upgrades have been completed, with the last one scheduled for Q4, and the total CapEx spend is approximately $10,000,000 per upgrade [50] Question: Shift in demand from Europe to Asia - Management discussed the complexities of demand shifts, noting that while macro factors may take time, the exit of older vessels could help balance the market [54][55] Question: Metrics within the three-year variable charter - Management confirmed that the charter is tied to an index with a floor of $20,000,000 and a ceiling of $100,000,000 [61][62]

Financial Data and Key Metrics Changes - Total operating revenue for Q2 2025 remained steady at $85,500,000, with adjusted EBITDA increasing to $56,500,000 from $53,400,000 in Q1 2025 [3][20] - Average Time Charter Equivalent (TCE) was slightly down at $69,900 per day compared to $70,600 in Q1 2025 [3][21] - Net income for Q2 2025 was CHF 11,900,000, an increase of CHF 2,800,000 compared to Q1 2025 [23] Business Line Data and Key Metrics Changes - The delivery of the Cool Tiger and Gale Saga contributed positively to EBITDA, despite challenges in the market [4] - The company has completed nine drydocks, with four including performance upgrades, leading to a decrease in average vessel operating expenses to $15,900 per day [23][24] Market Data and Key Metrics Changes - LNG supply is projected to increase by 2339% compared to 2024 volumes by 2026 and 2028, indicating a positive outlook for the LNG market [6][9] - Year-over-year storage levels were at 76%, down from 90% in the previous year, affecting supply dynamics [6][7] Company Strategy and Development Direction - The company remains disciplined in seeking asset acquisitions that enhance long-term value through active management [29] - The backlog provides a healthy foundation against market volatility, with 50% of days covered until 2027 [19][29] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market is challenging, but there are signs of gradual recovery in rates [12][13] - The exit of older steam turbine vessels is expected to help balance the market, with a gradual increase in rates anticipated [53][54] Other Important Information - The company has repurchased approximately 859,000 shares at an average price of $5.77 per share, reducing the total share count by 1.6% [28] - The company has entered into additional interest rate swap agreements, hedging approximately 75% of total notional debt [25] Q&A Session Summary Question: Impact of recent liquefaction activity on charter market sentiment - Management indicated that recent positive news is starting to focus attention on long-term shipping needs, although it is still early days [34] Question: Potential asset acquisitions - Management stated they are always looking for acquisition opportunities but have nothing concrete at this time [35][36] Question: Return on investment for vessel upgrades - Management confirmed a good return on the $10,000,000 investment, currently generating $5,000 per day, with potential for more in the future [42] Question: Scheduling of drydocking based on chartering environment - Management noted that they did not change scheduling significantly, as they aimed to complete drydocks when opportunity costs were low [44] Question: Status of LNG E upgrades - Four out of five upgrades are completed, with limited incremental costs remaining [48] Question: Shift in demand from Europe to Asia - Management highlighted that the balance could shift based on various factors, including outages and storage refilling in Europe [52] Question: Metrics within the three-year variable charter - Management confirmed the charter is tied to an index with a floor of $20,000,000 and a ceiling of $100,000,000 [60][61] Question: Upside from upgrades - Management indicated that the upside is typically shared, with current guidance at $5,000 per day, potentially increasing as charterers recognize savings [64] Question: Plans for vessels coming off contracts in 2026 - Management mentioned a range of options for fixing vessels, with a more robust market expected for longer-term charters [68]

Financial Data and Key Metrics Changes - Net income from operations for Q2 2025 was just under $30 million, primarily from the company's 15 vessels, which include 12 LNG carriers and 3 container vessels [5] - The company maintained a fixed distribution of $0.15 per share, marking the 73rd consecutive quarter of cash dividends since its listing in March 2007 [6][9] - The ongoing capital investment program amounts to over $2.3 billion, with a focus on expanding the asset base with new LNG and gas vessels starting delivery in 2026 [8] Business Line Data and Key Metrics Changes - The company reported a negative quarter in terms of earnings generation due to the absence of container vessels, which were not part of the fleet this quarter [8] - Financing was secured for two LCO2 carriers, with an approximate financing amount of $51 million per vessel, indicating a strategic move towards expanding the fleet [10] Market Data and Key Metrics Changes - The LNG market has seen a significant increase in new LNG Sales and Purchase Agreements (SPAs), with approximately 47 million tons sold since January 2025, including 25 million tons in Q2 alone [12] - A record pace of vessel removals from the fleet and a record low number of newbuilding orders were noted, indicating a potential market rebalancing [13][16] Company Strategy and Industry Competition - The company is pivoting towards becoming an LNG and gas transportation-focused entity, with plans to expand its charter book and secure long-term contracts [7][11] - The order book to fleet ratio for large LNG carriers is just below 44%, reflecting a slowdown in new energy orders, which is favorable for the company [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the LNG market, anticipating a strengthening market by 2026 and 2027 due to strong energy supply growth and the absence of new energy sea orders [18] - The company is well-positioned to benefit from the expected market dynamics, with a considerable contract coverage of over 70 years already in place [20] Other Important Information - The company introduced a Dividend Reinvestment Program (DRIP) for the first time in Q2, offering shareholders more options for their investments [6] - The company is actively involved in discussions regarding the employment of its new vessels, particularly in the emerging LCO2 market [23] Q&A Session Summary Question: Impact of increased merchant volumes on the carrier market - Management indicated that contracted volumes and SPAs do not have secure shipping, leading to a demand for approximately 300 ships, highlighting a potential supply-demand imbalance [21][22] Question: Near-term employment prospects for multi gas carriers and LCO2 carriers - Management noted that the fixing window for LCO2 carriers is shorter compared to LNG, with expectations for more concrete commercial discussions in the next three to four months [23][24] Question: Sentiment in the LNG sector following the U.S.-EU deal - Management confirmed that the deal has positively affected shipping sentiment, with multiple term requirements surfacing and active involvement in those discussions [32][35] Question: Anticipation of growth in the order book for liquid CO2 carriers - Management expects to see more orders in the next six to twelve months as projects mature, but noted that shipyard capacity for specialized vessels is limited [38][39] Question: Financing of new builds - Management stated that financing for new builds has been favorable, with lenders showing interest due to the vessels' flexibility in trading [41][42]

Investment Rating - The report maintains a "Buy" rating for the company [10]. Core Views - The company, COSCO Shipping Energy Transportation Co., Ltd., specializes in energy transportation with a fleet capacity of 20.5 million DWT, ranking first globally. The business segments include domestic oil transportation, LNG transportation, and foreign trade oil transportation, each with distinct characteristics [2][6]. - The domestic and LNG segments provide stability, while the foreign trade segment offers significant profit elasticity. The easing of the Russia-Ukraine conflict and tightening sanctions on Iran are expected to boost oil transportation demand, creating a favorable cycle for the industry [2][9]. Summary by Sections Introduction: Geopolitical Restructuring of Oil Transportation - The past two years have seen high average oil transportation rates, but seasonal demand has been weak due to limited actual demand and the impact of "shadow fleets" on oil transportation needs. The end of the Russia-Ukraine conflict and increasing sanctions on Iran may lead to a restructuring of oil trade patterns [6][16]. COSCO Shipping Energy: A Leader in Energy Logistics - COSCO Shipping Energy is a subsidiary of China COSCO Shipping Group, focusing on the transportation of oil and LNG. By January 2025, the company will have a fleet capacity of 20.5 million DWT, holding a 3.1% share of the global market [6][27]. Business Stability and Elasticity - The company’s business segments exhibit a balance of stability and elasticity. The foreign trade oil transportation segment is cyclical, while domestic oil and LNG transportation provide stable revenue and profit margins [39][44]. Foreign Trade Oil Transportation: Supply-Demand Dynamics - The foreign trade oil transportation segment is characterized by significant cyclicality. Factors such as the potential end of the Russia-Ukraine conflict and increased sanctions on Iran are expected to reverse current supply-demand challenges [8][53]. Investment Recommendations: LNG as a Safety Net - The company’s LNG and domestic oil transportation segments provide a safety net, while foreign trade oil transportation offers upward elasticity. The expansion of the fleet is projected to enhance performance, with profits from LNG and domestic oil transportation expected to grow by 55% over the next four years [9][50]. Financial Projections - The company’s projected net profits for 2024, 2025, and 2026 are estimated at 3.96 billion, 5.66 billion, and 6.53 billion yuan, respectively, with corresponding P/E ratios of 13.6, 9.5, and 8.3 [9].