China Merchants Energy Shipping (CMES)

China Merchants Energy Shipping (CMES), a major player in the Shanghai-listed shipping sector, has recently announced a significant investment in its fleet with the order of eight new vessels. This expansion includes a diverse range of ship types, highlighting the China Merchants Energy Shipping’s (CMES) strategic growth and diversification in maritime transportation. The order comprises four (4) methanol dual-fuel PCTCs ( pure car/truck carriers) with a capacity of 7,800 car equivalent units (CEU) each. These PCTCs ( pure car/truck carriers) represent an environmentally friendly approach in maritime transport, with their dual-fuel capabilities allowing for reduced emissions. Additionally, China Merchants Energy Shipping (CMES) has ordered two (2) kamsarmax bulk carriers, each with 82K DWT, and two general cargo ships with heavy lift capabilities, each having a deadweight of 62K DWT. These vessels are set to be constructed at China Merchants Heavy Industry, reflecting China Merchants Energy Shipping’s (CMES) commitment to enhancing its fleet with modern and versatile ships. The contracts for both the kamsarmax bulk carriers and the heavy lift general cargo ships include options for two (2) additional ships each. This provision demonstrates China Merchants Energy Shipping’s (CMES) forward-thinking approach and readiness to further expand its fleet based on market conditions and operational needs. 18-November-2023

 

Shanghai-listed China Merchants Energy Shipping (CMES) is on the verge of placing orders for new kamsarmax bulk carriers and multipurpose ships. The ships, which will be powered by conventional fuel, are set to be constructed by China Merchants Heavy Industry Jinling (CMHI Jinling) with an expected delivery in 2026. Progressing with its plans for expanding its dry bulk carrier fleet, China Merchants Energy Shipping (CMES), under the leadership of Chairman Feng Boming, had disclosed intentions to acquire bulkers last month. China Merchants Energy Shipping (CMES) is preparing to finalize contracts for two (2) kamsarmax bulk carriers and two (2) 62K DWT heavy-lift general cargo ships with China Merchants Heavy Industry Jinling (CMHI Jinling). According to a source tracking China Merchants Energy Shipping (CMES) newbuilding ventures, the official contract signing is anticipated to occur very soon. 8-November-2023

 

Shanghai-listed China Merchants Energy Shipping (CMES) sold 2011 built handysize bulk carrier 31K DWT MV Great Reward (built 2011) to Dalian Trawind International Ship Management for around $13 million. China Merchants Energy Shipping (CMES) has been selling non-eco bulk carriers. MV Great Reward is the fourth bulk carrier that China Merchants Energy Shipping (CMES) has sold a fourth bulk carrier since July 2021. Previously, China Merchants Energy Shipping (CMES) sold 2012 built bulk carrier 12K DWT MV CSC Rui Hai, 2012 built bulk carrier 12K DWT MV CSC Xin Hai, 2010 built handysize bulk carrier 31K DWT MV Great Resource. MV Great Reward and MV Great Resource equipped with BWTS (Ballast Water Treatment System). MV Great Reward, MV Great Resource, MV CSC Xin Hai, and MV CSC Rui Hai are not outfitted with scrubbers. After selling all non-eco ships, China Merchants Energy Shipping (CMES) controls a very small owned bulker fleet. However, China Merchants Energy Shipping (CMES) has chartered-in bulk carriers. Furthermore, China Merchants Energy Shipping (CMES) is going to take delivery of four (4) MPP (Multipurpose Bulk Carriers) from China Merchants Jinling Shipyard. China Merchants Energy Shipping (CMES) has been selling some of the vintage bulk carriers in its fleet which were taken over from former subsidiaries of Sinotrans & CSC. In 2017, state-backed China Merchants Group acquired Sinotrans & CSC to establish China’s second-largest shipping group. 12-August-2021

 

China Merchants Energy Shipping (CMES), a key player in Shanghai’s shipping sector, is gearing up for an expansion in its Very Large Crude Carrier (VLCC) fleet following a robust performance in the first quarter. Amid significant organizational restructuring, China Merchants Energy Shipping (CMES), part of the state-owned China Merchants Group, has received approval from its board to order two eco-friendly VLCCs from Dalian Shipbuilding Industry, at a cost of up to approximately $169 million. Details about this newbuilding contract will be disclosed once it’s signed, according to China Merchants Energy Shipping (CMES), which is among the world’s largest VLCC owners. In December, China Merchants Energy Shipping (CMES),commissioned four VLCCs from the same shipyard, totaling $332 million. The 307,000-dwt vessels are expected to be delivered between late 2021 and early 2022. China Merchants Energy Shipping (CMES),revealed this latest newbuilding plan along with its first-quarter results, showing a net profit surge to $179 million between January and March, aligning with prior forecasts. China Merchants Energy Shipping’s (CMES), oil tanker fleet reported a net profit of approximately $187.5 million. Despite variable tanker demand influenced by factors like seasonal trends, the pandemic, geopolitical dynamics, and OPEC+ production, the company managed to perform well. However, China Merchants Energy Shipping’s (CMES) bulker fleet, comprising 29 Very Large Ore Carriers (VLOCs) and smaller ships, saw a net profit decrease of about $9.5 million to $3.4 million, attributed to low raw material requirements and weak bulkers demand. China Merchants Energy Shipping’s (CMES) ro-ro division experienced a widened net loss of around $4.4 million due to subdued shipping demand. The company plans to dispose of two ro-ro ships, although further details were not specified. Additionally, China Merchants Energy Shipping (CMES) completed a takeover of the dry bulk and LNG assets of former Sinotrans & CSC group companies, valued at about $985.5 million, acquired by China Merchants Group. This acquisition brought 75 bulkers, interests in five Yamalmax LNG carriers, and their shipmanagement firms under China Merchants Energy Shipping’s (CMES) umbrella. Last year, China Merchants Energy Shipping(CMES) achieved a net profit of roughly $241.5 million, up 38.2% from 2018, with full-year revenue reaching about $2.19 billion. China Merchants Energy Shipping (CMES) announced a cash dividend distribution of approximately $101.1 million. 29-April-2020

 

China Merchants Energy Shipping (CMES), a significant entity in Shanghai’s shipping sector, has reported robust results for the first half of the year, buoyed by higher tanker rates. However, the company is cautious about the near-term future due to the ongoing trade tensions between the US and China. China Merchants Energy Shipping (CMES), a subsidiary of the state-owned China Merchants Group, saw its net profits surge by 50% year-on-year to $66.2 million in the January-June period, while revenues climbed by 38.1% to $957 million. China Merchants Energy Shipping (CMES) attributes the positive performance to improved VLCC (Very Large Crude Carrier) markets and growth in its oil tanker fleet. Additionally, the delivery of new very large ore carriers (valemaxes) supported bulker earnings. China Merchants Energy Shipping (CMES) also noted increased investment gains from the operation of LNG carriers it co-owns. Despite these gains, China Merchants Energy Shipping (CMES) expressed concerns about the escalating trade war between the US and China, particularly with Beijing’s impending 5% tariff on US crude imports starting in September. This marks the first inclusion of crude in China’s tariff list against US imports. China Merchants Energy Shipping (CMES) warns that the trade war could hamper the growth of US crude exports, given the limited capacity of Taiwan and South Korea to import US crude. China Merchants Energy Shipping (CMES) also highlighted ongoing geopolitical risks affecting crude production and shipping demand. While supportive factors like IMO 2020 regulations and slowing newbuilding deliveries could benefit tanker markets, concerns about limited scrapping leading to oversupply persist. Looking forward, China Merchants Energy Shipping (CMES) remains cautiously optimistic about the medium-term prospects for oil shipping markets, despite anticipating challenges in the latter half of 2019. China Merchants Energy Shipping (CMES) remains reserved in its outlook for the peak demand season in the fourth quarter, citing various market uncertainties. In the first half of the year, China Merchants Energy Shipping (CMES) transported nearly 36 million tonnes of oil, 32.5 million tonnes of dry bulk cargoes, 11.7 million tonnes of LNG, and 7.84 tonnes of ro-ro cargoes. As of June 30, China Merchants Energy Shipping (CMES) operated a fleet of 215 ships, including oil tankers, LNG carriers, bulkers, car carriers, and ro-ro ships, and holds the title of having the world’s largest fleets of VLCCs and valemaxes. 28-August-2019

 

Shanghai-listed China Merchants Energy Shipping (CMES) has bought $957 million worth of 74 bulk carriers and 25.5% stakes in 5 LNG carriers from Sinotrans & CSC group firms and their ship-management firms. Chinese state giant China Merchants Group has been internal restructuring. In 2017, China Merchants Group acquired Sinotrans & CSC. Since the acquisition, further integration progress was slow and there was intra-group competition. China Merchants Energy Shipping (CMES) has acquired 74 bulk carriers and 25.5% stakes in 5 LNG carriers from some former Sinotrans & CSC group firms as part of the intra-group restructuring of state conglomerate China Merchants Group. $957 million worth of agreement is pending on the final approval from the Chinese central government. China Merchants Energy Shipping (CMES) is aiming to fund $957 million worth of agreement with its own cash and bank loans. According to China Merchants Energy Shipping (CMES), the latest deal is important to integrate shipping assets and create a common platform for shipping business. Competitiveness and profitability will be improved in the intra-group. China Merchants Energy Shipping (CMES)​ will acquire 74 bulk carriers ​(41 owned and 34 chartered-in) from Sinotrans Shipping. Before Sinotrans deal, China Merchants Energy Shipping (CMES) had a fleet of 57 bulk carriers. Furthermore, China Merchants Energy Shipping (CMES)​ will acquire Sinotrans Ship Management​​. After the latest deal, China Merchants Energy Shipping (CMES) will increase dry bulk shipping capacity​. In a separate deal, ​China Merchants Energy Shipping (CMES) has acquired ormer Sinotrans & CSC firm that owns 25.5% interests in five (5) LNG carriers that ship from the Yamal LNG project:

  • LNG Tanker Boris Vilkitsky (built 2017)
  • LNG Tanker Fedor Litke (built 2017)
  • LNG Tanker Georgiy Brusilov (built 2018)
  • LNG Tanker Boris Davydov (built 2018)
  • LNG Tanker Nikolay Zubov (built 2019)

Besides the latest five (5) Yamalmax LNG carriers, China Merchants Energy Shipping (CMES) has six (6) more Yamalmax LNG carriers via its 50:50 joint venture China LNG with Cosco Shipping Energy Transportation. In Shanghai Stock Exchange, after latest deal China Merchants Energy Shipping (CMES) share price closed at CNY 7.23 on Monday. China Merchants Energy Shipping (CMES) reported net profits of CNY 723 million in Q3 2019. 20-January-2020

 

Chinese state-owned ICBC Financial Leasing ordered ten (10) valemax bulk carriers. China Cosco Shipping and China Merchants Energy Shipping (CMES) both announced the long-awaited signing of 27-year contracts with Vale Mining in Brazil. These long-term exclusive contracts are behind the orders of 30 valemax bulk carriers 400K DWT. 18-April-2016