China Merchants Energy Shipping (CMES) has alerted investors of a return to profit in the six months ended 30 June 2014.

The Shanghai-listed tanker and bulker owner said it is expecting to record a profit of RMB250m ($40.3m) in the first six months of this year, as against a loss of RMB137.49m in the previous corresponding period.

CMES said it was able to achieve better results due to improved operating conditions in the shipping market, and the ability to capture opportunities during the upturn periods of the tanker and dry bulk sectors.

The Chinese shipowner is currently in the midst of disposing vessels more than 20 years old and renewing its fleet with newbuildings scheduled to be delivered from the third quarter of this year.