Cosco Shipping Int'l secures two shipbuilding contracts

COSCO Shipping International's subsidiaries have secured two contracts to build multi-purpose pulp vessels and bulk carriers.

In an exchange filing on Thursday evening, it said it has secured a 222 million yuan (S$45.3 million) contract to build two multi-purpose pulp vessels with an option to build one more similar unit.

This contract was made between Cosco (Dalian) Shipyard Co Ltd and Cosco Shipping Specialised Carriers Co Ltd. The latter is also a subsidiary of China Ocean Shipping (Group) Company, Cosco Shipping International (Singapore)'s parent company.

The units are scheduled for delivery between the first and third quarters of 2019.

In a separate announcement, the firm said that Cosco (Zhoushan) Shipyard Co Ltd has recently entered into a contract with a European buyer for four 82,000-tonne bulk carriers, with two options to build another four similar units.

These four bulk carriers are scheduled for delivery between the third quarter of 2019 and the second half of 2020. The contract price was not disclosed as both parties have agreed to keep it confidential, said Cosco.

Both contracts are not expected to have any material impact on the net tangible assets and earnings per share of the company for the current financial year.