COSCO SHIPPING Energy Transportation (01138) enters into charter agreements for 16 very large crude carrier (VLCC) vessels.

COSCO SHIPPING Energy Transportation (01138) announces that on November 11, 2026, Universal Shipping (a wholly-owned subsidiary of the Company, as lessee) entered into charter agreements with Orient Rich (a connected person of the Company, as owner/lessor), pursuant to which Universal Shipping has agreed to charter in 16 very large crude carrier (VLCC) vessels from Orient Rich, with a charter period of 240 months 90 days, calculated from the delivery date of each vessel. The vessels are 307,000-deadweight-ton VLCC-type crude oil tankers ("methanol + LNG" dual-fuel-ready). Taking into comprehensive account the uncertainty of future market fluctuations, the Company has adopted a relatively balanced combined structure under the charter agreements of "fixed bareboat charter hire" for 8 vessels and "minimum guaranteed plus profit-sharing charter hire" for 8 vessels. After taking into account potential charter hire adjustments, the expected annual charter hire generated after delivery of the 16 vessels will fluctuate within a range of RMB680 million (excluding taxes and fees) to RMB1.0 billion (excluding taxes and fees), depending on changes in spot market earnings. Among these, except for the 3 years ending December 31, 2028, the Company expects that the maximum annual amount of variable lease payments under the charter agreements for each year ending December 31, 2050 will be RMB320 million. Charter hire payments under the charter agreements are expected to be funded from the Group's internal resources in the ordinary and usual course of business.