HK Stock Market Move | COSCO Shipping Energy Transportation (01138) falls by over 6% again, with second-quarter net profit doubling year-on-year. Institutions point out that being stuck in the Gulf has dragged down performance.

COSCO Shipping Energy Transportation (01138) fell by over 6%, dropping 4.32% to 11.96 Hong Kong dollars as of the time of publication, with a total turnover of 1.34 billion Hong Kong dollars. On the news front, COSCO Shipping Energy Transportation announced that it expects to achieve a net profit attributable to shareholders of approximately 4.5 billion yuan in the first half of the year, a year-on-year increase of 141%; of which, the net profit attributable to shareholders in the second quarter is approximately 2.3 billion yuan, a year-on-year increase of 100% and a quarter-on-quarter increase of 7%, achieving three consecutive quarters of quarter-on-quarter growth since the fourth quarter of 2025. The average TCE of VLCC main routes in the first half of the year increased by 180% and 170% year-on-year. Huachuang Securities pointed out that the trapped capacity in the Gulf hindered the company's performance in the second quarter. After the outbreak of conflict in the Middle East, passage through the strait was blocked, and about 8 oil tankers (including 3 VLCCs) of the company were located in the strait, choosing to wait periodically to ensure the safety of crew, cargo, and vessels, resulting in potential factors such as operational day losses, contract disputes, and freight recovery dragging down Q2 performance. However, by late June, all the above-mentioned vessels had safely sailed out of the strait. In addition, China's crude oil imports from March to May were down by 21% month-on-month, which may have a negative impact on the domestic oil transportation market and subsequently affect the company's performance in the domestic oil transportation sector.