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Cosco Corp News

21 May 2017

COSCO Singapore Wins FSRU Deal

Cosco (Qidong) Shipyard Co, a subsidiary of Cosco Corp's 51 per cent subsidiary Cosco Shipyard Group Co, has entered into an agreement with a European buyer for the construction of the floating storage regasification unit (FSRU) module. Cosco Corp did not identify the European buyer. COSCO Qidong and the European buyer have agreed to keep the contract prices confidential. Delivery of the module is scheduled for the first quarter of 2018. A press statement from the company said that brring any unforeseen circumstances, the above transaction is not expected to have a material mpact on the net tangible assets and earnings per share of the Company for the year ending 31 ecember 2017.

09 Apr 2017

Cosco Delays Delivery of Jack-up Rigs for Northern

Cosco (Dalian) Shipyard, subsidiary of Cosco Shipyard Group, has reached an agreement with Bermuda-based rig owner Northern Offshore to further delay the delivery dates of two jack-up drilling rigs amid challenging offshore drilling market. Dalian shipyard received an order for two LeTourneau Super 116E jack-up drilling rigs in November 2013 and the plan was to deliver the rigs in 1H2016 and 2H2016, respectively. According to the new agreement between the Chinese yard and Northern Offshore deliveries of the two rigs will also be deferred until further notice. Cosco Corp said that it is not possible to ascertain the financial impact of the rescheduling of the acceptances and deliveries of the rigs because it is uncertain when the rig owner will take delivery of the rigs.

24 Jan 2017

Cosco Nantong Bags Wind Farm Support Vessel Order from Everbright

China’s Cosco (Nantong) Shipyard has won a contract to build one multi purpose wind farm support vessel (WFSV) for the Hong Kong-based Everbright Int’l (HK) Offshore. Cosco Corporation's 51 per cent owned Cosco Nantong will deliver the contracted newbuild in the fourth quarter of 2018. Under the contract, Cosco Nantong has also granted an option to Everbright pursuant to which the company may order another similar multi purpose wind farm support unit within six months from the contract. Cosco Corp has not disclosed the contract value, of which the listed company said has to be kept confidential as agreed with Everbright. The above contract is not expected to have any material impact on the net tangible assets and earnings per share of the Company for the year ending 31 December 2017.

25 Oct 2016

Sembcorp Marine Swings to Loss in Q3

Photo: Sembcorp Marine

Singapore's Sembcorp Marine Ltd swung to a loss in the third quarter and the rig builder's revenue was hurt by customers deferring rig deliveries amid a protracted downturn in the oil and natural gas market. The company posted a net loss of S$21.8 million ($15.7 million) for the three months ended Sept. 30, compared with a net profit of S$32.1 million a year ago. It said the bottomline was hurt by higher financing costs, share of losses from associates and foreign exchange impact. The company, majority-owned by industrial conglomerate Sembcorp Industries Ltd, said revenue dropped 21 percent.

09 May 2016

Cosco Sinks into the Red

Singapore-listed ship repair, marine engineering and dry bulk shipping company COSCO Corporation (Singapore) Limited has recorded a net loss of USD 11.7 million in the first quarter of 2016, compared to a net profit of USD 4.2 million in the corresponding quarter of 2015. The deep is attributed mainly to the poor shipbuilding and dry bulk shipping businesses.The group booked lower revenues from shipyard operations and dry bulk shipping. Revenue fell by 27% year-on-year to $716.6 million owing to lower contributions from shipbuilding and dry bulk shipping, partially offset by higher revenue from ship repair. Turnover from dry bulk shipping and other businesses decreased 45.2% to $5.7 million in Q1 2016 on decreased charter rates.

15 Feb 2016

Sembcorp Marine posts first Quarterly Loss.

Posts S$535 mln loss vs year ago profit; net order book backlog at S$10.4 billion. Singaporean rig builder Sembcorp Marine Ltd posted its first quarterly loss, hit by writedowns and project delays by its key customers, underscoring the strain caused by plunging crude oil prices. The company also warned that it expects the downtrend to last longer than previous cycles as Singapore's $10 billion rig building industry faces cancellations and a dearth of new orders. For the fourth quarter, Sembcorp posted a S$535.2 million ($383 million) attributable loss, excluding non-operating items, compared with a profit S$174 million for the same year ago period. It said fourth-quarter net profit would have been S$99 million before impairments and provisions and losses from associates and joint ventures.

03 Nov 2015

Cosco Compensates Sevan

COSCO Corp (Singapore) will refund $26.3 million, or 5 percent of the contract price, plus associated interest to Sevan Drilling by December 1, 2015. Sevan Drilling and Cosco have agreed to exercise the first six-month option to extend the deferral agreement to April 15, 2016. The final delivery instalment has been amended to $447.1 million, representing 85 percent of the $526 million contract price and can be amended further upon the expiration of the option period. The company first announced winning of the contract back in May 2011. In between, the industry went into a down turn that is persisting until now. In October 2014, Sevan and Cosco reached an agreement to extend the delivery date for 12 months…

23 Oct 2015

Cosco Singapore Under Pressure

Shipbuilding and dry bulk shipping company  Cosco Corp (Singapore) expects to post a loss in the third quarter ended September 30, 2015 compared to a profit recorded in the same period a year earlier. The  financial pain comes on the back of the offshore slump, shipbuilding slowdown and highly depressed dry bulk shipping market. As a result, the group incurred higher costs for a few delayed projects as well as write-down of certain inventory. Provisions for impairment of trade receivables have also been made. Provisions for impairment of trade receivables have also been made, and exact details of the company’s financial performance for the 3Q2015 will be disclosed on November 12, 2015.

05 May 2015

Cosco Corp Profit Down

Cosco Corporation (Singapore) Limited, offshore marine engineering, shipbuilding, ship repair & conversion and dry bulk shipping group, has posted a net profit of SGD4.25 million (USD3.19 million), down 82% year-on-year for the first quarter that ended 31 March 2015. The Singapore-listed Chinese shipbuilding and dry bulk shipping group's turnover decreased 4.6% to $991.2 million in Q1 2015 from $1.04 billion owing to falls in shipyard and dry bulk shipping revenues. The company's revenue from its shipyard operations segment decreased by 4.7% y/y to SGD980.8 million in 1Q15 from SGD1.03 billion in 1Q14, owing to lower revenue contribution from marine engineering and ship repair. This was partially offset by an increase in revenue from shipbuilding.

30 Apr 2015

COSCO Q1 Profit Sinks on Shipyard, Shipping Weakness

COSCO Corporation Singapore Ltd, part of one of China's largest shipbuilding groups, said its first-quarter net profit dropped 94 percent year-on-year to S$766,000 ($579,600) on weak performance in shipyard and bulk shipping businesses. COSCO Corp, a Singapore-listed subsidiary of Chinese state-owned maritime conglomerate China Ocean Shipping (Group) Company, posted a revenue of S$991.2 million ($750 million), down 4.6 percent on the year. ($1 = 1.3216 Singapore dollars) (Reporting by Rujun Shen

07 Nov 2014

COSCO Chairman Expects Shipping Slump to Persist

 Ma Zehua (Photo: COSCO)

The global shipping market is unlikely to see a recovery during the next two years as it grapples with an oversupply of vessels, the chairman of China's largest shipping group said on Wednesday. The sector has been battling overcapacity since the 2008 financial crisis because new vessels ordered before the downturn have flooded the market, dragging down rates and hitting Chinese ship builders hard. Ma Zehua, the chairman of China Ocean Shipping Group (COSCO), told reporters on the sidelines of a conference in Chongqing that the firm was focusing on cost control…

03 Nov 2014

Shipbuilding: COSCO Warns of Struggle if Credit Tightens

COSCO Corp (Singapore) , part of one of China's largest shipbuilding groups, warned that its customers could struggle to pay their bills as funding costs rise, after posting sales on credit at their highest level in 11 years. The Singapore-listed subsidiary of Chinese state-owned maritime conglomerate China Ocean Shipping (Group) Company said trade and other receivables -- sales for which the company has not received cash payment -- rose more than 60 percent so far this year to S$4.7 billion ($3.7 billion). Reporting an almost 70 percent jump in third-quarter profit on Monday, the company said higher receivables reflected a rise in construction contracts in its marine engineering segment. But the company said tougher credit conditions would hurt.

24 Feb 2014

COSCO 2013 Net Profit Falls 71%

Chinese shipbuilder COSCO Corp (Singapore) Ltd on Monday reported a 71 percent fall in full-year 2013 net profit, due to lower profit contributions from ship building and marine engineering segments. COSCO Corp, a subsidiary of state-owned maritime industry giant China Ocean Shipping (Group) Co, said its full-year net profit stood at S$30.6 million ($24.14 million), below the Thomson Reuters SmartEstimate of S$43.78 million. The company did not state its fourth-quarter results. In the first nine months of the year, its net profit slumped 68 percent to S$26 million. The shipbuilder said its order book was at $7.8 billion, up from $7.2 billion a quarter earlier. ($1 = 1.2676 Singapore dollars) (Reporting by Rujun Shen; Editing by Matt Driskill)

07 Nov 2013

COSCO Updated Q3 2013 Financial Report Remains Cheerless

COSCO Zhoushan Shipyard: Photo courtesy of COSCO

COSCO Corp. Overall, net profit attributable to equity holders of the Company decreased 84.1% from $26.6 million in Q3 2012 to $4.2 million in Q3 2013 mainly due to lower contributions from dry bulk shipping and shipyard operations. Group turnover inched up 5.6% to $989.4 million in Q3 2013 from $937.0 million in Q3 2012 owing to increases in shipyard revenue, but gross profit decreased 36.4% from $115.1 million in Q3 2012 to $73.2 million in Q3 2013 mainly due to higher inventory…

18 Oct 2013

COSCO Shipbuilders Deliver Vessel, Contracts for Two More

COSCO Corp. (Singapore) Ltd. announce a newbuilding delivery by its Guangdong shipyard, and contracts for its Nantong and Dalian subsidiary shipyards also in China as follows: COSCO (Guangdong) Shipyard has delivered a 4500m2 Livestock Carrier, “Galloway Express” to its European buyer. The vessel is 134.80 meters in LOA 19.60 meters in breadth and 9.6 meters in depth. COSCO (Nantong) Shipyard has been contracted for a conversion valued at over USD 170 million of a semi-completed hull to high-end floating accommodation unit.The unit is scheduled for delivery in 24 months. COSCO (Dalian) Shipyard has secured a contract valued over USD180 million from an Asian company to build a Jackup drilling rig scheduled for delivery in the 3rd quarter of 2015.

20 Dec 2012

Offshore Accommodation Rig Order for COSCO

COSCO Corp. (Singapore} subsidiary COSCO Qidong Offshore Co to build the accommodation rig for European joint venture company. The contract, valued at US$200-million.is for the construction of a harsh environment semi-submersible accommodation rig for Axis Offshore, a joint venture between Danish shipowner, J. Lauritzen and Norwegian private equity fund, HitecVision. Signatory of the contract was COSCO Qidong Offshore Co., Ltd, a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co., Ltd Delivery is scheduled for the first quarter of 2015.

18 Dec 2012

FPSO Contract for COSCO

COSCO Corp. (Singapore) secures contract to construct a Floating Production Storage Offloading (FPSO) vessel in China. COSCO Nantong Shipyard Co. Ltd., a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co. Ltd., has secured a contract valued over US$ 370-million from a European company to build a FPSO. The FPSO will measure 78 meters in diameter, 32 meters high and will have a storage capacity of up to 400,000 barrels of oil. The vessel is scheduled for delivery in June 2015.

13 Aug 2012

COSCO Win Jack-up Drill Rig Contract from Talland

COSCO Corp. secures US$170-million order from Talland Navigation Corp. Ltd. for a jack-up drilling rig. COSCO (Dalian) Shipyard Co. Ltd., a subsidiary of COSCO Shipyard Group Co. Ltd., has secured a US$170-million contract from Talland Navigation Limited Corporation, a subsidiary of Foresight Limited (London) to build a jack up rig based on the LeTourneau Super 116E Class design. The new rig will be built to ABS classification, with notation A1, and will be a self- elevating drilling unit, with a drilling depth of up to 30,000 feet ,and will have accommodation for up to 120 persons on board. It will be equipped for efficient operation and layout…

12 Jul 2012

China Contends for Slice of Oil Rig Construction Business

According to Reuters, China is emerging as a strong contender to the traditional offshore oil rig manufacturing powerhouses of Singapore and South Korea as shipyards such as COSCO Corp fight for a bigger market share in a deepwater exploration boom. China started making jack-up rigs for shallow-water drilling and semi-submersibles for deepwater operations about seven years ago. In that short span of time, industry data shows it managed to secure a fifth of the $72 billion orders placed, tempting customers with aggressive pricing. China is able to tempt customers by aggressive pricing, but big customers still favour Korea and Singapore, as Chinese quality and reliable delivery are concerns, says the Reuters report.

06 Jul 2012

COSCO Singapore Clarifies Recent Press Articles

The Board of directors of COSCO Corporation (Singapore) Limited (the “Company”) refers to the articles which appeared in The Straits Times on 30 June 2012 entitled “Dark clouds over China shipbuilder Cosco Corp” and in Bloomberg on 27 June 2012 entitled “Cosco Singapore is Lowest-Rated Asia Stock on Rig Push”. The Straits Times article mentions that the Company faces possible customer defaults and order cancellations from Europe. The Company recognises that business conditions have remained difficult and this is reflected in the significant drop in the Baltic Dry Index, amongst other things. As such, the Company’s order book may be subjected to revision from the cancellation and rescheduling of orders.

20 Jun 2012

Chinese Shipyard Terminates Greek Contract

Yangzijiang Shipbuilding (Holdings) Ltd has terminated a contract with Greek shipowner FreeSeas Ltd after it failed to make payments The cancelled contract was for Yangzijiang to build two bulk carriers for FreeSeas, an external spokeswoman for the Chinese shipbuilder told Reuters. Although the orders from FreeSeas account for only 1 percent of Yangzijiang's $4.5 billion order book, "the cancellation will still be negative on sentiment as this is Yangzijiang's first contract cancellation on default," said DBS Vickers in a report. It added that among the Singapore-listed shipyards, COSCO Corp Singapore Ltd has the highest exposure to Greece and Europe, with more than 60 percent of its order book from the region, while Yangzijiang will be the least affected among Chinese yards.

26 Mar 2012

Cosco Signs $150m Shipbuilding Contract

Cosco Corp. announced that it s Cosco Shipyard Group signed a $150m contract with a European shipowner to build a vessel specially designed for the purpose installation of offshore wind turbines. The company said that this is the second jack-up vessel which COSCO will build fo the owner. The vessel is designed to carry eight to 10 wind turbines on each trip, to operate at water depths of up to 45m with a crane capacity of up to 900 tons. Delivery is scheduled for 2014.

23 Sep 2008

Cosco Wins Contracts Worth $256.2m

Cosco Corp has won $256.2m worth of shipbuilding and conversion contracts, reports said.  The company will build two bulk carriers for a German customer to be delivered in 2010 and 2011.  The 9 conversion contracts it won are slated for completion by the fourth quarter 2009.