Rongsheng Heavy Industries News

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.

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.

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.

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…

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.

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.

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.

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

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.

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.

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.

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…

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…

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…

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.

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.

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.

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.

China Rongsheng Heavy Industries release financial results for the twelve months ended 31, December 2012. In 2012, the Group recorded approximately RMB 7.96 billion in revenue, a year-over-year decrease of 50% from RMB 15.9 billion. Losses attributable to equity holders of the Company were RMB 572.6 million, compared to earnings of RMB 1.7 billion in 2011. Mr. “The sluggish global shipping market continued to reduce new shipbuilding prices and deteriorate payment terms, as global new shipbuilding orders plunged to their lowest level in a decade. "Shipbuilding is the Group’s core business and its major revenue contributor. During the Period, revenue from the shipbuilding segment reached RMB 7.56 billion, representing 95% of revenue.

China Rongsheng Heavy Industries delivers a seventh 380,000 DWT class Very Large Ore Carrier (VLOC) to Vale. The new VLOC, christened Vale Shandong has been received by Vale S.A . As of 7 December 2012, China Rongsheng Heavy Industries has delivered a total of seven VLOCs, with one completed last year and six this year. On the same day, another VLOC built for Oman Shipping Company S.A.O.C. left for sea trials and will be received by the shipowner in the near future. Rongsheng-built VLOCs have an environmentally friendly design to lower oil consumption and reduce the emission of CO2…

China Rongsheng Heavy Industries Group Holdings deliver their first container ship to a German owner. The new 6,500-TEU container ship measures 299.95 meters in length, 40 meters in breadth and 24.2 meters in depth. This latest delivery not only demonstrates a breakthrough of manufacturing capability at China Rongsheng Heavy Industries, but they say it also marked their comprehensive strengths in research and development and product diversity. Rongsheng believe that business upgrade and R&D capability are always development keys in the shipbuilding industry.

In accord with  Hong Stock Exchange rules China Rongsherg Rongsheng Heavy Industries Group announces an expected net loss for year ending 2012. The Company believes that the net loss is primarily attributable to the decline in the shipbuilding market during the eleven months ended 30 November 2012, which led to the sharp decrease in the orders and prices of vessels compared with the same period last year. Based on the unaudited consolidated management accounts of the Company and its subsidiaries (collectively the “Group”) for the eleven months ended 30 November 2012 and the preliminary estimation by the Company, the Group is expected to incur a net loss for the year ending 31 December 2012 as compared with the published net profit for the year ended 31 December 2011.

Oman Shipping Company (OSC) has taken delivery of its third Very Large Ore Carrier (VLOC) 'Vale Saham' in China. The giant bulk carrier will be used to transport iron ore from Brazil to Sohar, Oman. OSC has one more vessel of its class under construction at Jiangsu Rongsheng Heavy Industries Company in Nantong in China. Vale Saham, the new Rongsheng-built VLOC delivered to OSC adopts an environmentally friendly design to lower oil consumption and reduce the emission of CO2, while its operating efficiency exceeds that of most existing ore carriers.