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Rongsheng News

22 Oct 2018

Saudi Aramco to Invest in China

Saudi Aramco recently signed an MoU with Chinese Zhejiang provincial government during the 2nd International Petroleum and Natural Gas Enterprises Conference (IPEC), to acquire a share of Zhejiang Petrochemical’s new refinery project.Abdulaziz Al Judaimi, Sr. VP Downstream, said: "We are exploring opportunities for new refining and petrochemicals facilities, making further investments in China. Saudi Aramco has recently signed a crude oil supply agreement with Zhejiang Petrochemical (Rongsheng). This increase in customer base is due to our continuous focus and attention to the Chinese market. We are also a major JV partner in a growing portfolio of refining and petrochemical assets in China."Saudi Aramco plays an important part in China’s energy security.

12 Nov 2017

China's Yangzijiang Triples Q3 Profits

Chinese Shipbuilding Group Yangzijiang posted a third quarter net profit of $130 million which is more than a tripling of its profits in the third quarter last year. The group also managed to exceed its target of $1.5 billion in annual orders. This caused the share price to hit a six year high at $1.64 and the group to increase its annual target for orders to $2 billion for this year and and $2 billion for next year. The group expects to construct and deliver up to 50 vessels each this year and the next in spite of increasing steel prices and the Renminbi appreciating against the dollar. Plans to increase capacity were announced that will allow the builder to attract more value added contracts.

19 Jan 2016

Chinese Shipyards Sails in Rough Seas

Shipbuilders in China will continue facing rough weather. According to a report in Bloomberg, new orders received by Chinese shipbuilders fell by nearly half last year from 2014, suggesting more consolidation is in order as the country’s appetite for raw materials wanes and shipping rates languish at multiyear lows. Shipyards in China received new orders amounting to 31.3 million deadweight tons last year, a world-leading 34 percent share of the global market. Backlog orders fell 12 percent to 123 million deadweight tons, or 36 percent of global market share. The shipbuilding will lag behind their foreign rivals as cumbersome financing conditions and prolonged excess capacity continue to crimp industry profits and push smaller shipyards out, experts said.

01 Jan 2016

China's Wuzhou Ship Repairing Goes Bankrupt

China's  state-owned shipbuilder Zhoushan Wuzhou Ship Repairing & Building Co. Ltd (ZWSRB)  is first government-backed shipbuilder to go under since sector started having problems last year. Zhoushan Intermediate People's Court said it accepted a petition filed by Zhejiang Shipping Group regarding the bankruptcy of a subsidiary called ZWSRB, reports Caixin. The court said it had frozen the assets of Wuzhou Ship Repairing & Building, which was founded in 2001. The shipbuilder had debts of 911 million yuan and total assets of 534 million yuan as of September 30 this year, its financial report showed. Wuzhou Ship Repairing & Building started having financial difficulties last year, a person with knowledge of the matter said.

02 Jul 2015

China Huarong in Distress

China Huarong Energy Co, formerly known as China Rongsheng Heavy Industries, said in a regulatory filing that a memorandum of understanding on the disposal of assets to an unnamed buyer has expired. Huarong announced in March a potential sale of its core shipbuilding and engineering business, subject to formal agreement. Huarong Energy signed the MOU with the potential buyer in April for the sale of its shipbuilding assets as part of its restructuring process. The MOU was effective until 30 June 2015, and the company and the potential purchaser have failed to agree to a deal. A statement from the company says: "The Company wishes to…

01 May 2015

Yangzijiang Shipbuilding in Early Talks on Rongsheng Investment

China's Yangzijiang Shipbuilding Holdings Ltd is considering a possible investment in troubled peer China Huarong Energy Co Ltd , formerly known as China Rongsheng, its executive chairman said on Thursday. Ren Yuanlin said the company was still in early talks with stakeholders, and expected to make a decision on the investment by end-June. "The government, banks, and Rongsheng's major shareholder all hope we can be part of the deal, but whether or not we will get in depends on the asset price," he told reporters at a post-earnings briefing in Singapore, where the company is listed. Yangzijiang, in which Ren owns a 26 percent stake and is the biggest shareholder, is one of China's biggest shipbuilders, and the country's most profitable listed shipyard.

31 Mar 2015

SCI takes Delivery of VLCC "Desh Vibhor"

The Shipping Corporation of India Ltd. (SCI) accepted delivery of a Very Large Crude Oil Carrier (VLCC) on 28 March, 2015. The vessel has been named “Desh Vibhor”. The vessel was ordered with Jiangsu Rongsheng Heavy Industries Co. Ltd., China during November 2010. The vessel has a gross tonnage of 165,319 tonnes and deadweight of 316,634 tonnes at scantling draft. The vessel has been classed with IRS and LRS and has been built to comply with latest international regulations. Acquisition of this vessel is in line with SCI’s strategy of maintaining a modern and young fleet of vessels. With addition of this vessel, SCI’s fleet strength has increased to 69 vessels of 3.29 million GT and 5.89 million dwt.

17 Mar 2015

China Rongsheng to Sell Shipbuilding Business

China Rongsheng Heavy Industries (RSHI) has entered into a memorandum of understanding (MoU) with an undisclosed third party Chinese investor to sell its onshore shipbuilding and offshore engineering business. Both parties will further negotiate details of the deal, including the scope and list of related assets and liabilities, a stock filing of RSHI said. The MOU will remain in effect until 30 June and is likely to be extended by both parties. China Rongsheng, which is also involved in marine engine building, engineering machinery and energy exploration, has been struggling with a heavy debt burden amid a slowdown in China's economic growth.

06 Nov 2014

DryShips Reports 3Q 2014 Results

DryShips Inc. an international provider of marine transportation services for drybulk and petroleum cargoes, and through its majority owned subsidiary, Ocean Rig UDW Inc., or Ocean Rig, of offshore deepwater drilling services, today announced its unaudited financial and operating results for the third quarter ended September 30, 2014.  For the third quarter of 2014, the Company reported net income of $16.7 million, or $0.04 basic and diluted earnings per share. - Non-cash write offs and breakage costs associated with the full refinancing of Ocean Rig's $1.35 billion Senior Secured Credit Facility, totaling $22.0 million or $0.05 per share. Excluding the above items, the Company would have reported net income of $29.8 million, or $0.07 per share.

04 Sep 2014

China Lists 51 Shipyard 'White List'

China has released its first "white list" of 51 shipyards that it deems worthy of favourable policy support, as the world's largest shipbuilder strives to tackle over-capacity that has slammed the global shipping market. The government said last year that shipbuilders that complied with its requirements in areas like ship emissions would be put on a white list for favourable policy support, such as export tax rebates and bank credit. The list published on the Ministry of Industry and Information Technology's website on Wednesday included the Jiangsu shipyard of heavily indebted China Rongsheng, Singapore-listed Yangzijiang's New Yangzi shipyard and two of Sinopacific Shipbuilding yards.

03 Sep 2014

DryShips Cancels Newbuild Contracts

DryShips Inc. reports cancellation of four newbuilding contracts with Jiangsu Rongsheng Heavy Industries DryShips Inc., an international provider of marine transportation services for drybulk and petroleum cargos, and through its majority owned subsidiary, Ocean Rig UDW Inc., of offshore deepwater drilling services, today announced that it has reached an agreement with Jiangsu Rongsheng Heavy Industries (RSHI), to cancel the newbuilding contracts for four ice-class panamax bulker vessels, in exchange for the refund of all installments paid to RSHI plus interest. All amounts due under this agreement have been received in full by the Dryships, the company said. dryships.com

21 Apr 2014

China Shipbuilder Rongsheng in 2013 Revenue Freefall

Cheng Quang: Chairman China Rongsheng

During the year ended 31, December 2013 China Rongsheng, the largest non-state-owned shipbuilder in the PRC, reports that revenue of the Company was RmB1,343.6 million, a decrease of 83.1% from RmB7,956.3 million for the year ended 31 december 2012. China Rongsheng Heavy Industries Group Holdings Limited explain that In 2013, the unfavourable operating environment for ship owners persisted amid the unsatisfying performance of the global shipping market in spite of the tepid recovery from 2012. As a result, ship owners requested shipyards to postpone the delivery of new vessels.

10 Apr 2014

Debt-Laden Bulk Shipper to be Liquidated

A Chinese court has ordered a unit of debt-laden dry bulk goods shipper Chang Jiang Shipping Group Phoenix Co Ltd to liquidate its assets, displaying further evidence of the troubles faced by the country's beleaguered shippers. The unit, whose Chinese name is translated as Chang Jiang Jiaotong Keji, is unable to pay its debt or stay solvent, prompting three of its creditors to apply to the Wuhan intermediate court to liquidate its assets, Chang Jiang Shipping said in a filing on the Shenzhen stock exchange. The unit, in which Chang Jiang Shipping owns an 89 percent stake, has ceased to operate. China's shipping sector has been plagued by overcapacity since the global financial crisis because new vessels ordered before the downturn have flooded the market.

10 Apr 2014

Chang Jiang Shipping Faces Asset Liquidation

A Chinese court has ordered a unit of debt-laden dry bulk goods shipper Chang Jiang Shipping Group Phoenix Co. Ltd. to liquidate its assets, displaying further evidence of the troubles faced by the country's beleaguered shippers. The unit, whose Chinese name is translated as Chang Jiang Jiaotong Keji, is unable to pay its debt or stay solvent, prompting three of its creditors to apply to the Wuhan intermediate court to liquidate its assets, Chang Jiang Shipping said in a filing on the Shenzhen stock exchange. The unit, in which Chang Jiang Shipping owns an 89 percent stake, has ceased to operate. China's shipping sector has been plagued by overcapacity since the global financial crisis because new vessels ordered before the downturn have flooded the market.

07 Apr 2014

Deadbeat Chinese Shipyards Stick Banks with Default Bill

Chinese banks are stuck in a lose-lose legal battle between domestic shipyards and foreign buyers over billions of dollars in refund guarantees that are supposed to be paid out if shipbuilders fail to deliver on time. One in three ships ordered from Chinese builders was behind schedule in 2013, according to data from Clarksons Research, a UK-based shipping intelligence firm. Although that was an improvement from 36 percent a year earlier, it was well behind rival South Korea, where shipyards routinely delivered ahead of schedule the same year. That means Chinese banks may be on the hook to pay large sums to buyers if the yards can't come through per contract, with little hope of recouping the cash from the yards.

27 Dec 2013

China's Biggest Shipbuilder Floats Billion HK$ Bourse Offering

Image courtesy of Ronghseng

China Rongsheng Heavy Industries to offer HK$1,000,000,000 worth of 7% convertible bonds due 2016. The estimated net proceeds from the issue of the Convertible Bonds, after deduction of commissions and expenses, would be approximately HK$992,500,000, which will be used for working capital and general corporate purposes and repayment of loans of the Group. The company explains that assuming full conversion of the Convertible Bonds at the initial Conversion Price of HK$1.05 per Share…

06 Dec 2013

Greek Shipowner Doubts Major China Shipbuilder Can Deliver

Rongsheng Shipyard: Rendering credit Rongsheng

China Rongsheng Heavy Industries Group, the country’s largest private shipbuilder, expects to report a substantial full-year loss just months after it appealed to the government for financial help, reports Reuters. Analysts have indicated that the company could be the biggest casualty of a local shipbuilding industry suffering from overcapacity and shrinking orders amid a global shipping downturn. Greek shipowner DryShips Inc. which has four dry-bulk carriers on order at the company’s shipbuilding subsidiary…

15 Oct 2013

Chinese Shipbuilders' Production Likely 50% Down by Year's End

Huangpu River: Photo Wiki CCL

Chinese shipbuilders have been sailing toward bankruptcy in recent years, with China trying to consolidate the industry and bail it out from the woe of overcapacity. With delays in deliveries, order cancellations and price decreases for newly-built vessels, shipbuilding firms have been in a slump since late 2008, when the global financial system was in free fall, reports a recent Xihua Insight article. Statistics from China Association of National Shipbuilding Industry showed in the first half of 2013…

10 Apr 2013

China Rongsheng Delivers Two More VLOCC's

Comparison Size Man & Ship:Photo Credit Wiki CCL Superfast1111

China Rongsheng Heavy Industries delivers the ninth and tenth 380,000-dwt class Very Large Ore Carriers (VLOCs). Christened Vale Jiangsu  and Vale Shinas, the two new Rongsheng-built 380,000 DWT class VLOCs have been delivered to Vale S.A. and Oman Shipping Company S.A.O.C. respectively. Rongsheng say that the vessels adopt an environmentally friendly design to achieve lower oil consumption and reduce the emission of CO2, while  operating efficiency exceeds that of most existing ore carriers.

09 Jul 2013

China's Largest Shipbuilder Seeks Nation's Cities Aid

China Rongsheng Heavy Industries Group Holdings Ltd. (1101) is in talks with two coastal cities and government departments to secure financial assistance, as the nation’s shipowners association forecast a slump in vessel orders will run through next year, reports Bloomberg. The country’s largest shipyard outside state control is in discussions with Rugao and Nantong cities and some ministry-level departments related to the shipping industry, according to Bloomberg, citing Rongsheng spokesman William Li. The company said July 5 it was seeking financial assistance from the government after a plunge in orders forced it to reduce production and “restructure” its workforce.

22 Jul 2013

China Tightens Shipbuilders' Credits: Singapore May Benefit

Singapore's Keppel Corp Ltd and Sembcorp Marine Ltd, the world's top offshore rig-makers, stand to be among the winners through Beijing's moves to tighten credit amid a downturn at China's shipyards, reports Reuters. The two companies have been under mounting pressure from Chinese yards offering generous payment terms, price discounts and help with financing, but that may be changing after Beijing pledged to cut credit to industries plagued with overcapacity, and China Rongsheng Heavy Industries Group, the country's largest private shipbuilder, fell into financial trouble. Rongsheng could now become the biggest casualty of a local shipbuilding industry suffering from overcapacity and shrinking orders amid a global shipping downturn.

23 Jul 2013

China Rongsheng Delivers Fourth Vale VLOC

Vale VLOC delivery: Photo credti China Rongsheng

China Rongsheng Heavy Industries Group Holdings Limited has delivered the 380,000 dwt class Very Large Ore Carrier (VLOC) 'Vale Caofeidian' to Brazil's Vale S.A. The vessel is the fourth 380,000 DWT class VLOC delivered by the Group this year and its eleventh delivery of VLOC's overall. The Chinese shipbuilders have successfully delivered 11 VLOCs, while most of those remaining have been launched and are under outfitting process. The next VLOC delivering to Vale is also at its final stage for sea trial.

07 Aug 2013

China Shipbuilder Hit by Forex Losses on Contracts

Yangzijiang Shipbuilding Holdings Ltd. China’s second-biggest private shipyard, posted a 7.6 percent decline in second-quarter profit because of higher tax and foreign exchange loss on contracts done in euros, reports Bloomberg. Citing a company statement to the Singapore Stock Exchange, Bloomberg say that Net income in the three months ended June dropped to 812 million yuan ($133 million) from 878 million yuan a year ago, while sales rose 12 percent to 4.42 billion yuan. Yangzijiang is among companies diversifying into offshore drilling and production as demand for new bulk vessels decline. The government has urged financial support…