COSCO Shipping International (Singapore) Co.(formerly: COSCO Corporation (Singapore))

[Behappyalways]

Bank loans are the only thing keeping loss-making COSCO afloat
http://sbr.com.sg/shipping-marine/news/b...sco-afloat

[greengiraffe]

Times are very hard... very very hard... dun play play better start to pray just like Mr MC Hammer:

https://www.youtube.com/watch?v=2Yo5HZuDxjY

What catch my attention, is the detail of the contract, very favorable to shipowner. It shows how desperate of cosco for the contract...

(not vested)

Cosco unit to extend delivery deadline for two remaining PSVs to US customer

SINGAPORE (May 28): Cosco Corporation (Singapore) ( Financial Dashboard) said a US ship owner and Cosco Guangdong have mutually agreed to extend the delivery dates of two PSVs, originally scheduled for delivery in early 2014, until 30 June 2016.

On March 22, Cosco announced the signing of contracts by Cosco (Guangdong) Shipyard Co. with the US customer for the construction of four UT 771 CDL Platform Supply Vessels (PSVs) for over US$105 million in total.

Two of the PSVs were completed on 15 December 2014 and 17 February 2015 respectively.

To date, the construction of the two PSVs has also been significantly completed.

Under the new agreement, the shipowner can elect to take delivery of any one or both of the completed PSVs at any time prior to 30 June 2016 or “such date may be further extended by mutual agreement of the parties”.

Cosco said if the shipowner does not take delivery of either of the remaining PSVs, Cosco Guangdong will refund to the shipowner the instalments paid on the PSV of US$5.4 million per vessel together with interest.

The shipowner will also relieved of the obligation to pay to Cosco Guangdong the remaining payment under the shipbuilding contract.

Cosco closed 0.5 cent lower at 5.25 cents yesterday.
http://www.theedgemarkets.com/sg/article...s-customer

[CityFarmer]

More stress for Cosco. No impact in FY2015, the real impact is later at FY2017...

(not vested)

Cosco Nantong and Qidong to delay project delivery

SINGAPORE (Aug 6): Shipbuilder Cosco Corp ( Financial Dashboard) says that the delivery dates for two contracts under its subsidiaries would be delayed.

Cosco Nantong Shipyard, a subsidiary of Cosco’s 51% owned subsidiary, Cosco Shipyard Group Co., said the delivery date for the conversion of a semi-completed hulls to high-end floating accommodation units (FAUs) will be extended no later than 12 months from its original delivery date of OCt 2015, at the request of the shipowner.

In 2013, Cosco Nantong secured the contract to deliver the two FAUs, the first of which was delivered to the shipowner on February 2015.

For the delayed FAU, the shipowner will pay all expenses and interest on the final instalment payment during the extended period.

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 delayed deliveries are not expected to impact on the net tangible assets and earnings per share of the Cosco for FY15.

Cosco closed 2.6% lower at 37.5 cents.
http://www.theedgemarkets.com/sg/article...t-delivery

[greengiraffe]

Hi CF,

Its the sign of overall times... everyone is feeling the stress. The guys that are still going around telling everyone they are OK are liars... the entire industry is going thru a very bad and bleeding patch. There will be plenty that will evaporate from this tsunami and until we see the bottom, we won't be able to see the survivors.

I have gone thru period when KFELs is just doing designs and hoping that clients will give an order while mounting diesel engines on barges to generate electricity. That was before the last cycle started and prolonged till last year. So the latest correction will be an equally long time. Noone will be spared as the survivors will have to scrap for their survival.

GG

More stress for Cosco. No impact in FY2015, the real impact is later at FY2017...

(not vested)

Cosco Nantong and Qidong to delay project delivery

SINGAPORE (Aug 6): Shipbuilder Cosco Corp ( Financial Dashboard) says that the delivery dates for two contracts under its subsidiaries would be delayed.

Cosco Nantong Shipyard, a subsidiary of Cosco’s 51% owned subsidiary, Cosco Shipyard Group Co., said the delivery date for the conversion of a semi-completed hulls to high-end floating accommodation units (FAUs) will be extended no later than 12 months from its original delivery date of OCt 2015, at the request of the shipowner.

In 2013, Cosco Nantong secured the contract to deliver the two FAUs, the first of which was delivered to the shipowner on February 2015.

For the delayed FAU, the shipowner will pay all expenses and interest on the final instalment payment during the extended period.

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 delayed deliveries are not expected to impact on the net tangible assets and earnings per share of the Cosco for FY15.

Cosco closed 2.6% lower at 37.5 cents.
http://www.theedgemarkets.com/sg/article...t-delivery

[CY09]

Hi GG,

thanks for the reply. I am curious about the previous shipping/O&G downturn.

Of which, I am interested to know what happened during that down cycle (significant events), how long was that downturn, what happened and chain of events leading to companies folding, how did the survivors survive (i.e through rights, banks allowing covenants breach) and was there a contagion effects on other sectors such as banks and property?

Sorry for being a busybody but that down cycle was when I was playing marbles in school

[greengiraffe]

I think i oso dunno how it started as when I started KFELs was already in competition with VD Horst (Horse) to capture a slice of the regional power barge deal.

In fact the oil glut started in 80s and I was there in the 90s. U play marbles and I m newbie analyst that didn't survive 1 yr... lol

Back then, ship repair/conversion were still a viable business for local marine cos. There was Keppel Shipyard that controls K FELs, Singmarine (Current K1 that focus on small ships) and KIE (engineering arm of Keppel). Sembawang Shipyard (now SCI post merger with STIC), Jurong Shipyard (now Sembmarine post merger with S'bawang Shipyard) and Japanese controlled Hitachi Zosen which was subsequently sold to Keppel and eventually delisted.

As Singapore costs rises overtime, the emphasis on value added rises and repair jobs eventually made way for higher value added rig and offshore projects. I think in terms of ship building the Japs and Koreans remain premium builders but of course now the Chinese yards are closing in.

I suggest you use the www to find out about the oil glut in 80s and hopefully you can help educate us with your findings.

GG

Hi GG,

thanks for the reply. I am curious about the previous shipping/O&G downturn.

Of which, I am interested to know what happened during that down cycle (significant events), how long was that downturn, what happened and chain of events leading to companies folding, how did the survivors survive (i.e through rights, banks allowing covenants breach) and was there a contagion effects on other sectors such as banks and property?

Sorry for being a busybody but that down cycle was when I was playing marbles in school

[touzi]

Cosco, China Shipping in merger talks in landmark consolidation move

China Ocean Shipping Group (Cosco) and China Shipping Group are planning a merger, in what could be a far more complicated consolidation process than combining the country’s two train makers.

Beijing on Thursday night ordered the two beleaguered state behemoths struggling in a protracted industry slump to come up with a roadmap to merge, the South China Morning Post learned.

The mainland’s two largest shipping and logistics conglomerates together control 11 listed entities in Shanghai, Shenzhen, Hong Kong and Singapore.

http://www.scmp.com/business/companies/a...rger-talks

[brattzz]

i see M&A opportunities, KEPCORP+SEMBMARINE,
double the product range, restructure the cost for the long term, complete as a single entity for singapore!...

[butcher]

Oh gosh cosco was suspended.

[edragon]

08.10.2015 17:12
Trading Suspended on Talks of COSCO, China Shipping Merger

China's two largest shipping conglomerates are poised for a merger on urgings of central government, says COSCO executive

By staff reporter Bao Zhiming


(Shanghai) – The listed subsidiaries of two major state-owned shipping companies saw their shares suspended on news of a possible merger.

A share trading halt on the subsidiaries of China Ocean Shipping Co. (COSCO Group) and China Shipping Co. came into effect on August 10, according to announcements by the listed subsidiaries.

The central government urged the two companies to draft a preliminary merger plan within three months starting from August, said an executive from COSCO Group.

A five-member working group will be set up for mulling the merger plan, said the executive. Three members will be appointed from China Shipping, with the other two from COSCO Group; China Shipping chairman Xu Lirong will head the team, the executive said.

The executive said that because the two companies have businesses in many sectors such as shipping, logistics and trading, their merger is expected to be more difficult than that of the recent China CNR Corp. Ltd. and CSR Corp. Ltd. which became China Railway Rolling Stock Corp. Ltd. in June.

The COSCO Group executive said the two companies have discussed the possibility of making container transportation businesses into one listed company.

A merger between the two companies could contribute bigger economies of scale to compete with foreign companies, said Jiang Ming, an analyst from Essence Securities.

The expansion of fleets in container transportation helped international shipping companies such as Maersk Line of Denmark and CMA CGM of France become more profitable, said Jiang.

The central government issued a plan in 2006 to cut the number of state-owned companies it controlled from 161 to around 80 to 100 as of the end of 2010. The mergers of the shipping companies were part of the plan.

Shipping companies China National Foreign Trade Transportation Corp. (SINOTRANS) and China Changjiang National Shipping Corp. (CSC) merged to form Sinotrans & CSC Holdings Co. Ltd. in March 2009.

Discussions of a merger between COSCO Group and China Shipping appeared in 2010 because the two companies have overlapping sectors, said Jiang.

In February 2014, COSCO Group and China Shipping signed strategic agreements to cooperate in many fields such as investment, transportation and ship maintenance.

Market rumors of their merger earlier this year forced their listed subsidiaries to state on April 17 they did not receive orders from government authorities on the merger.

(Rewritten by Guo Kai)

Print
本文网址: http://english.caixin.com/2015-08-10/100838137.html