Cosco wins seven bulker contracts

29 February 2012 (Last Updated February 29th, 2012 18:30)

Singapore's Cosco has received an order to build seven bulker vessels worth over $190m from two unnamed European firms.

Singapore’s Cosco has received an order to build seven bulker vessels worth over $190m from two unnamed European firms.

Cosco subsidiary Cosco Guangdong Shipyard will build a 35,000 dwt bulk carrier, which is scheduled to be delivered in the first quarter of 2013.

Separately, Cosco Zhoushan Shipyard has won an order to build two 64,000 dwt dry cargo vessels, including an option for four vessels, from another European owner.

All the six vessels will be of eco-friendly and fuel-efficient designs and the two firm orders are scheduled to be delivered in the first and second quarters of 2014 respectively.

According to the company, after the approval of the two contracts from its board of directors, it has the option to declare two of the option contracts to become effective within 12 months and the following two in 24 months.

Delivery of the ships under the option contracts is expected to take place within 18 months after the option contracts become effective.

Cosco said the contracts are not expected to have a material impact on the net tangible assets and earnings for the year ending 31st December 2012.

In February, Cosco’s subsidiary Cosco (Zhoushan) Shipyard delivered a 57000 dwt bulk carrier to an Asian buyer while its subsidiary Cosco (Guandong) Shipyard delivered a 57000 dwt vessel to a European ship owner.

Each of the vessels has a length of 189.99m, breadth of 32.26m and depth of 18m.

The company has an orderbook worth $6.1bn as of 31 December 2011, with deliveries up to first half 2014.