China Cosco acquires 5 boxships for $435m

By Finance

China Cosco Holdings has signed a deal with China State Shipbuilding Corp (CSSC) for building 5 9,400 TEU container ships. The estimated price of the deal is $434.5m. CSSC's Shanghai Jiangnan Changxing Shipbuilding is expected to finish the vessels between 2016 and 2017 and to deliver the newbuildings to China Cosco. 30 days ago, the Chinese state owned company has signed a deal for the construction of 4 64,000 dwt bulkers at Huangpu Wenchong Shipyard.

But that was not the last order, 4 VLCCs at the yards of China Shipbuilding Industry Co (CSIC) were booked also. China Cosco recently is experiencing  financial problems. Even the company was almost delisted from the Shanghai Stock Exchange.

Another Chinese company COSL (China Oilfield Services Limited) is to invest $1.3bn in orders for rigs and offshore vessels. The capital will be used also for construction and purchase of 2 semi-submersible drilling rigs, 4 jack-up rigs, 15 oilfield utility vessels, 4 integrated survey and seismic vessels and two 6,000 bhp anchor handling tug supply (AHTS) vessels.

The company COSL is expecting in 2014 the work volume of their seismic survey and offshore transportation service to remain stable. The subsidiary of state-owned China National Offshore Oil Corporation (CNOOC) informed:

"The company is also expected to benefit from increased workload from its new business developments in the drilling segment and oilfield services,"