Athens: China Shipping Development’s Singapore subsidiary today placed an order with Guangzhou Shipyard for four crude/product tankers in a deal worth a combined $199.9m.
No clear specification for the tankers was disclosed but, in a filing to the Hong Kong stock exchange, CS Development said the contract’s value was in line with market expectations for vessels of between 100,000 and 120,000 tonnes deadweight.
The tankers are expected for delivery in the first, second, third and fourth quarters of 2017 respectively.
The newbuildings will be 70% financed with bank borrowings and around 30% with “internal financial resources”.
“The directors are optimistic of the demand in both the import crude oil transportation market and international product oil transportation market and their expected persistent growth in the coming years,” CS Development said in the filing.
“The directors are of the view that the construction and ownership of the tankers will enable the group to take advantage of the business opportunities in the shipping market, enjoy economies of scale, optimise its overall route arrangements and improve its operating efficiency and profitability.”