Hong Kong Stock Movement | COSCO SHIP ENGY (01138) Surges Over 8% on Plans to Raise 8 Billion Yuan for Fleet Renewal as Crude Oil Production Increase Expected to Drive Tanker Demand

Stock News
2025/09/12

COSCO SHIP ENGY (01138) jumped more than 8% in early trading and was up 5.3% to HK$8.74 with turnover of HK$133 million as of press time.

On the news front, COSCO SHIP ENGY announced on September 8 that it plans to issue A-shares to raise no more than 8 billion yuan. The proceeds will be used to invest in the construction of 6 VLCCs (Very Large Crude Carriers), 2 LNG transport vessels, and 3 Aframax crude oil tankers to optimize fleet structure, enhance capacity, and strengthen the company's competitiveness.

Currently, COSCO SHIP ENGY's tanker fleet faces serious aging issues, with the average age of its tanker fleet reaching 14 years by the end of July 2025, making capacity replacement an urgent priority.

Additionally, OPEC+ recently finalized its next round of production increase plans. Industrial Securities noted that OPEC+'s confirmation to launch the next round of production increases, while the monthly increase is lower than the previous round, sends a strong signal to the market that it "prioritizes market share over price" and is determined to maintain long-term production increases by continuing to boost output amid low oil prices. Consequently, crude oil prices are expected to be further suppressed, fully stimulating effective demand and driving oil tanker transportation demand into an upward cycle.

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