Cosco Delays Deliveries for two FAUs

Maritime Activity Reports, Inc.

August 7, 2015

Photo by Cosco Shipyard Group Co

Photo by Cosco Shipyard Group Co

 Two shipyards under Cosco Shipyard Group have pushed back the delivery dates for two converted high-end floating accommodation unit (FAU) at the customer’s request.

Cosco (Nantong) Shipyard, a subsidiary of Cosco’s 51% owned subsidiary, Cosco Shipyard Group Co., said the delivery date of a FAU built at its yard will be extended for a period of not more than 12 months from its original delivery date of October 2015.
The delayed FAU is the second of two units ordered by the shipowner for construction at Nantong facility, and the first unit has been delivered. The FAUs are converted from semi-completed hulls.
In 2013, Cosco Nantong secured the contract to deliver the two FAUs, the first of which was delivered to the shipowner on February 2015.
During the extension period, the shipowner will pay all expenses and interests on the final instalment payment for the FAU until its delivery.
Separately, Cosco Qidong Offshore, also a subsidiary of Cosco Shipyard Group Co., says the delivery date of an FAU would be extended for 120 days to 2QFY17 from its scheduled delivery date of 1QFY17, at the request of the shipowner.
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.
The latest extension to delivery dates over offshore units followed earlier announcements over delayed deliveries for a jack-up drilling rig and a floating accommodation vessel at the Nantong yard, and an accommodation rig at Qidong yard.
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