Following its foray into construction of mega containerships, Yangzijiang Shipbuilding recently secured its first VLOC contract. It delivered its 4th 10k TEU containership, the Hanjin AMI, on 16 June 2014. Company photoYangzijiang secures first Aussie order, first VLOC order
YANGZIJIANG SHIPBUILDING has scored two firsts with its latest deal: It secured a shipbuilding contract for four 260,000 DWT very large ore carriers (“VLOC”) and this is its first Aussie customer.
The order was placed by an Aussie ore company listed on ASX.
The leading PRC shipbuilder expects to deliver the VLOCs from 2016 to 2017.
Yangzijiang posted 1QFY2014 revenue growth of 24% year-on-year to reach Rmb 3.6 billion, and a net profit growth of 11% to reach Rmb 799.2 million.
Ren Yuanlin, executive chairman of Yangzijiang Shipbuilding, was awarded 2013-2014 Outstanding Entrepreneur Award by the Chinese Enterprises Association, China Entrepreneurs Association and China Enterprise Management Science Foundation yesterday (18 June). NextInsight file photoAbout 80% of its 1QFY2014 revenue was contributed by its shipbuilding segment, and the remaining 20% from its financial investments and micro-financing business.Bulkers contributed only 9.8% of its shipbuilding revenue in 1QFY2014 revenue, but this looks set to change with its entry into the VLOC market.
The shipbuilder previously built mainly containerships and Handymax bulk carriers, as these vessels were most often used in sea transportation.
“There is increasing demand for larger vessels with higher carrying capacity as such vessels are more efficient and cost-effective,” said Executive Chairman Ren Yuanlin.
On 16 June, it delivered its 4th mega containershp, the 10k TEU Hanjin AMI.
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Geo Energy to buy coal concessions
Jim Rogers is Geo Energy's non-executive director. NextInsight file photoGeo Energy Resources has inked a deal to acquire more coal concessions.
Under a conditional sale and purchase agreement signed yesterday (18 June), Geo Energy shall acquire an Indonesian company with coal mining licenses in South Kalimantan, Indonesia.
Geo Energy will pay S$55 million to control the target company, which owns two concessions in Angsana, Tanah Bumbu with the following rights.
>> 194.9 ha until 8 March 2015 (outstanding life of 8 months)
>> 41.2 ha until 29 May 2022 (outstanding life of 8 years)
The deal is subject to Geo Energy obtaining an estimate for the target coal reserves of at least 30 million tonnes of coal with a minimum gross calorific value of 100 kcal/kg.
Geo Energy's current gearing of 0.21 has been estimated to increase to 0.66 upon completion of the proposed acquisition.
Recent story: @ GEO ENERGY'S AGM: "Low Coal Prices Present Opportunity For M&A"
