Cosco units to extend delivery dates of floating accommodation units

SHIPPING group Cosco Corporation (Singapore) said on Thursday its subsidiaries would be extending the delivery dates of two floating accommodation units (FAUs) at the request of a shipowner.

Cosco (Nantong) Shipyard Co had secured contracts for the conversion of two semi-completed hulls to high-end FAUs.

The first FAU has been delivered to the shipowner.

The delivery date of the second FAU will be extended for a period of not more than 12 months from its original delivery date of October 2015.

"During the extension period, the shipowner shall pay all expenses and interest on the final instalment payment for the FAU until the delivery of the FAU. The shipowner may at any time take delivery of the FAU by giving to Cosco Nantong not less than 60 days written notice," the group said.

Its other subsidiary, Cosco (Qidong) Offshore Co, had secured a contract to build a third FAU scheduled for delivery in Q1 2017 for the same shipowner.

Cosco Qidong has agreed to extend the delivery of the FAU by 120 days to Q2 2017. All the other terms of the shipbuilding contract remain unchanged.

The group said the extensions in delivery of the FAUs are not expected to have any material impact on the net tangible assets and earnings per share of the company for the financial year ending Dec 31, 2015.