Chinese COSCO (Zhoushan) Shipyard, a subsidiary of COSCO Shipyard Group, has entered into a contract with an undisclosed European buyer to build two 113,000 DWT crude oil tankers.
COSCO Zhoushan and the European buyer have agreed to keep the contract prices confidential, the company said. The crude oil tankers are scheduled for delivery in the first and second quarters of 2018 respectively.
Image courtesy: COSCO
In addition, the European buyer has been given the option to make a decision before November 2016 to build two more 113,000 DWT tankers.
COSCO said that the transactions are not expected to have a material impact on the net tangible assets and earnings per share of the company for the year ending 31 December 2016.
COSCO Corporation (Singapore) Ltd, majority owner of COSCO Shipyard Group, saw a 26.9% dip in the turnover from its shipyard business to USD 716.6 million from USD 980.8 million in Q1 2015, amid lower revenue contributions from marine engineering and ship building, partially offset by an increase in revenue from ship repair.
As at 31 March 2016, the group’s order book stood at USD 7.6 billion with progressive deliveries up to 2018.