Oil and gas, shipping sectors collectively issue unusual movement announcements; multiple companies respond to Middle East conflict impact

Amid escalating geopolitical tensions in the Middle East, market expectations for the supply of oil, natural gas, coal, and chemical products, as well as shipping prices, have undergone significant changes, leading to intense capital inflows into related listed companies.

On March 3rd, despite a broad decline in the A-share market, the oil and gas index surged by 9.83%, the gas index rose by 9.29%, the shipping index increased by 8.82%, and the energy equipment index gained 5.91%.

That evening, more than a dozen oil and gas stocks and energy companies, including China National Petroleum Corporation (601857.SH), Sinopec (600028.SH), China National Offshore Oil Corporation (600938.SH), Zhongman Petroleum (603619.SH), and CNOOC Services (601808.SH), issued abnormal movement notices warning of risks. Several shipping stocks, such as COSCO Shipping Energy (600026.SH), China Merchants Energy Shipping (601872.SH), and China Merchants South America (601975.SH), also collectively announced alerts.

At the same time, multiple listed companies responded on their announcements or interactive platforms regarding the impact of Middle East tensions on their operations.

Consolidated Company Announcements Signal Cooling

The key to the impact of Middle East geopolitical risks on oil prices lies in the Strait of Hormuz. According to the EIA, in 2024, approximately 20 million barrels of oil are traded daily through the Strait of Hormuz, accounting for over a quarter of global maritime oil trade.

In terms of oil transportation routes, about 84% of crude oil and condensate transported through the Strait of Hormuz in 2024 will head to Asian markets, with 83% of liquefied natural gas also destined for Asia. China, India, Japan, and South Korea are the main destinations for oil shipped via the Strait, collectively accounting for about 69% of the total flow of crude oil and condensate through the Strait in 2024. Specifically, China’s daily crude oil imports average 11 million barrels, with 4.78 million barrels per day passing through the Strait, representing approximately 43.5%.

After the U.S. and Israel launched military strikes against Iran on February 28, Iran announced the closure of the Strait of Hormuz, prohibiting commercial ships from passing—effectively cutting off a vital oil transportation route, which triggered market expectations of supply disruptions and caused international oil prices to soar.

In the A-share market, over the past two trading days, the oil and gas sector has led the gains, with continuous limit-ups. In the abnormal movement notices issued that evening, the “Big Three” oil companies stated that recent international crude oil markets have been affected by geopolitical tensions and supply-demand factors, resulting in wide price fluctuations. They warned investors of significant short-term volatility and associated risks.

Intercontinental Oil & Gas (600759.SH) reminded investors that, although the company’s stock price has hit multiple daily limits recently, its fundamentals have not changed significantly. The company cautioned that market sentiment may be overly optimistic, leading to irrational speculation, and that the stock could experience sharp declines after large short-term gains.

Offshore equipment leader Haimo Technology (300084.SZ) provided detailed explanations of how Middle East geopolitical tensions impact its business. The company stated that if the current tensions persist or expand to other major oil and gas resource countries in the Middle East, it could adversely affect its future sales and service operations in the region.

Donghua Energy (002221.SZ) also issued a warning, noting that recent escalations in Middle East geopolitical conflicts have significantly impacted the international oil and gas markets, causing LPG prices to fluctuate sharply in the short term. Investors should be aware of investment risks.

Responding to Investor Concerns

Over the past two days, many investors have asked listed companies about the impact of Middle East conflicts on their operations via interactive platforms. Overall, investors mainly focus on three areas:

1. The cost impact of rising international oil prices driven by Middle East geopolitical tensions.

Haimo Technology (002320.SZ) responded that, according to the company’s recent annual report, fuel costs account for less than 20% of operating costs. Rising oil prices will increase shipping operating costs, but the company is mitigating this through optimizing speed and routes, reducing fuel consumption, and timely bulk procurement to lock in costs.

Guanghua Technology (002741.SZ) also stated that there has been no impact on the company so far.

2. The effect of escalating Middle East tensions on transportation costs and cycles in certain regions.

Shenghang Shipping (001205.SZ) said that its current international hazardous chemicals waterway transportation mainly focuses on Northeast Asia, Southeast Asia, and India, and does not involve Middle Eastern routes. The regional conflicts have no direct impact on its operations, but the volatility in international oil prices caused by the conflict will have some influence.

Shenghang Shipping added that it will continue to monitor market changes, focus on high-quality long-term and leasing contracts with international petrochemical clients, strengthen cooperation in Southeast Asia, Northeast Asia, and India, and adopt flexible pricing strategies, explore high-potential markets, segment markets, and expand emerging growth areas to enhance resilience and profitability, ensuring stable operation of its waterway hazardous cargo transportation business.

Aili Home (603221.SH) noted that the Middle East tensions have somewhat increased logistics costs and extended transportation cycles in certain regions, affecting the short-term expansion pace in European markets.

Additionally, some investors are concerned whether Middle East tensions will impact the China-Europe Railway. XinNing Logistics (300013.SZ) responded that its current China-Europe routes do not involve the Middle East. Since operations began in mid-2025, the volume of China-Europe trains has steadily increased, and the company will continue to promote related business development.

3. The impact on the safety of overseas factories and supply chain stability.

Guangli Technology (300480.SZ)’s subsidiary ADT is located in Haifa, northern Israel. On the interactive platform, Guangli Technology responded that ADT’s operations are currently minimally affected by the Middle East tensions and remain stable.

Guangli Technology explained that ADT is a whitelist enterprise approved for normal operation during emergencies and wartime, with safety protections in place. When tensions are high, employees follow government safety protocols, enter shelters, and can still communicate and send emails from within the shelters, ensuring uninterrupted business operations.

Over the past two to three years, aside from temporary logistics disruptions, the factory’s production and R&D have remained largely unaffected. In response to changing circumstances, ADT’s marketing team has promptly communicated with clients, and its UK and Zhengzhou factories will provide production coordination and procurement support to ensure order delivery, minimizing external environmental impacts on customers.

(Article source: Yicai)