Cosco Marine Energy is a specialized company engaged in oil products, liquefied natural gas and other energy transport and international chemical transportation under COSCO Shipping. Cosco Marine Energy is formed by the reorganization of the energy transport plate of the former China Ocean Shipping Group and China Shipping Group. The company focuses on the two core businesses of tanker transport and LNG transportation, and vigorously develops the operation mode of VLCC POOL, improves the operation efficiency and efficiency of the fleet, and makes every effort to create a new win-win situation between customers and shipowners, shipowners and shipowners.

The company focuses on the two core businesses of tar tanker transport and LNG transport. Shanghai Cosco Marine liquefied Natural Gas Investment Co., Ltd., which is wholly owned by the company, and China liquefied Natural Gas Transportation (holding) Co., Ltd. (CLNG), which holds a 50% stake, are the only two large LNG transport companies in China. They mainly serve China's projects of importing LNG from Australia, Papua New Guinea and Russia, and have become an important force affecting the world LNG transport market. The company's tanker fleet has the largest capacity in the world, covering the mainstream tanker types in the world, and is the most complete tanker fleet in the world. By the end of June 2022, the company has a total tanker capacity of 161ships and 23.65 million deadweight tons, which is 5 ships and 1.59 million deadweight tons less than at the end of 2021. In the first half of 2022, the transportation volume (excluding term rent) was 89.1476 million tons, an increase of 9.7% over the same period last year; the transport turnover was 266.048 billion tons of nautical miles, an increase of 8.4% over the same period last year; the income from the main business was 7.475 billion yuan (RMB, the same below), an increase of 23.0% over the same period last year; the cost of the main business was 6.851 billion yuan, an increase of 32.8% over the same period last year; gross profit margin decreased by 6.8% over the same period last year The net profit attributed to shareholders of listed companies was 178 million yuan, a decrease of 69.5% compared with the same period last year, and a decrease of 17.0% to 2.24 billion yuan.

Structural changes in oil trade brought about by the conflict between Russia and Ukraine. In the first half of 2022, the conflict between Russia and Ukraine triggered the energy sanctions imposed by Western countries on Russia and changed the pattern of international oil trade. The original small and medium-sized tanker types benefited from the substantial increase in exports from the United States Bay and West Africa to Europe, and the market was active. The finished product tanker shows a sustained and strong recovery momentum under the situation that refining profit margin supports trade activity. Except for the VLCC ship type, the daily income level of the representative route of all tanker types has increased by more than 100% compared with the same period last year.

Investment advice: structural changes in oil trade brought about by the conflict between Russia and Ukraine. We expect the prosperity of the oil transportation industry to rise in the second half of the year. The company, as a leading enterprise in the industry, will benefit from this, so it is recommended to buy.