Cosco Shipping Energy Transportation (CSET) has completed a fund raising scheme with its parent group, a CSSC yard and a CSIC yard to fund a major fleet expansion.
CSET has announced that it has raised RMB5.1bn ($721m) in total by issuing 730m new shares to Cosco Shipping Group, Dalian Shipbuilding Industry and Hudong Zhonghua Shipbuilding. The proceeds will be used to fund the construction of 14 tanker newbuildings and acquisition of two 72,000 dwt tankers.
The fund raising scheme was first announced in October 2017 with an target to raise RMB5.4bn.
The 14 newbuildings include four VLCCs, three suezmax tankers, three aframax crude tanker, two aframax product tankers and two panamax tankers.
Seven of the newbuildings are currently under construction at DSIC while another seven are on order at Guangzhou Shipyard International (GSI).
Cosco is one of the largest tanker owners in the world, operating a tanker fleet of over 150 vessel with total capacity of over 12.88m dwt.
CSET estimates its net profit for the year of 2019 will be between RMB410m ($58m) and RMB490m ($69m), up 290% to 367% year-on-year.