Cosco subsidiaries win shipbuilding contracts

9 July 2013 (Last Updated July 9th, 2013 18:30)

Singapore's Cosco has announced that two of its subsidiaries have secured several shipbuilding contracts worth over $216m.

Singapore’s Cosco has announced that two of its subsidiaries have secured several shipbuilding contracts worth over $216m.

Cosco Zhoushan Shipyard, a unit of Cosco’s 51% subsidiary Cosco Shipyard Group, was awarded contracts by an unnamed European shipowner to build four 111,000dwt tankers for $180m.

Under the deal, the European ship owner retains an option to build two additional tankers, while the four new tankers of the latest contract are expected to be delivered from the beginning of 2015.

In a separate development, the shipyard won a new contract from another European firm for the construction of a stinger barge alongside an oil tanker.

Cosco Dalian Shipyard, another subsidiary of Cosco Shipyard Group, has secured the order, the total value of which is estimated at over $36m.

Delivery of the stinger barge is scheduled to take place in the first quarter of 2014, while the 22,000dwt oil tanker is expected to be delivered to an unnamed Asian shipowner in the fourth quarter.

According to Cosco, the shipbuilding contracts are unlikely to have any material impact on the net tangible assets and earnings per share of the company for the year ending 31 December 2013.