The Straits Times / The Business Times News on Cosco

Cosco (S) bags deals worth US$114.7m

COSCO Corp (Singapore) said its 51 per cent-owned subsidiary, Cosco Shipyard Group, has won four contracts totalling US$114.7 million.

The contracts include two integrated tugs and barge new buildings (US$59 million), a conversion of oil tanker to submersible heavy lift vessel (US$27.5 million) and eight single hull to double hull conversions (US$21.4 million), set for commencement between this month and December.

The fourth involving two shiprepair projects (US$6.8 million) was delivered last month.

Cosco (Singapore) is the mainboard-listed subsidiary of China Ocean Shipping, China's biggest shipping group.

Cosco Corp said it expects to attract more single hull to double hull conversion contracts 'as the mandatory conversion of single hull tankers to anti-spill double hull gathers momentum'.

'Double hulling conversion is a core capability of Cosco Shipyard Group and will add to group earnings this year,' said Ji Hai Sheng, president of Cosco (Singapore).

He added that the group expects to attract more of such complex contracts when repair capacity is considerably enhanced with expansion at its Zhoushan shipyard.

The contracts are expected to have a positive impact on the company's net tangible assets and earnings per share for the year ending Dec 31, 2006.