The economic recession that swept through the oil transport markets in the first half of the year has also undermined Cosco Shipping Energy Transportation’s hopes for growth.
The Cosco Group, currently operating over 200 oil and gas tankers, has forecast an 80/84% year-on-year drop in net profits for the first half of the year, of between 72 and 87.3 million dollars.
Market dynamics therefore remain weak due to a slow recovery in crude oil demand and production cuts by OPEC and Russia.
Bunker prices, on the other hand, are rising. This has significantly reduced the profit margins of companies operating in the sector.
In June, earnings for operating VLCCs reached their lowest levels since 2000. Suezmax vessel profits even fell below zero for the first time since the start of monthly reports by shipbroker SSY.
Translation by Giles Foster
