Cosco wins contract to build a semisubmersible accommodation vessel

2 May 2012 (Last Updated May 2nd, 2012 18:30)

Cosco (Nantong) Shipyard, a subsidiary of Cosco Shipyard Group, has secured a $200m contract from Mexico-based company Cotemar to build a harsh environment semi-submersible accommodation vessel.

Cosco (Nantong) Shipyard, a subsidiary of Cosco Shipyard Group, has secured a $200m contract from Mexico-based company Cotemar to build a harsh environment semi-submersible accommodation vessel.

The vessel will be constructed at the Cosco Shipyard Nantong in China, which is also a subsidiary of Cosco Shipyard Group.

The vessel will be built to the company's GustoMSC Ocean500 design, and have a capacity of 750 POB and the DP3 dynamic positioning system.

It will be designed to operate in the Santos Basin, Gulf of Mexico, and in the North Sea.

Cosco Shipyard in Nantong is expected to deliver the vessel in 30 months.

The company said the contract is not expected to have a material impact on its assets and earnings for the year ending 31 December 2012.

Cosco Shipyard Group secured a $220m contract last month from Singapore-based Energy Drilling to build two barges with an option for another two.

As of 31 December 2011, Cosco Group's order book stood at $6.1bn which is scheduled for delivery by the first half of 2014.

Last year the company secured new orders worth $2bn, which include a pair of 82,000 dwt bulk carriers, four special purpose carriers, three self-erecting tender drilling rigs, two jack-up drilling rigs, two Sevan 650 drilling units and one semi-submersible barge.

During the year the company delivered 34 bulk carriers, two windmill turbine installation vessels, two multipurpose heavy lift carriers, two car carriers and two shuttle tankers.

The company's gross profit dropped 20% from $476m in 2010 to $380m in 2011 due to lower dry bulk shipping income and higher operational costs in its shipyard business, the company said.