Shanghai: The loss-making tanker arm of Sinotrans & CSC Group, Nanjing Tanker has announced that the company plans to acquire 10 VLCCs and 10 MR tankers which are currently on 10-12 year time charter deals.
Nanjing Tanker said the expense of chartering the vessels is very high and not favourable for the restructuring of the company.
The board of the company has authorized its subsidiary Nanjing Tanker (Singapore) to spend $467.9m to purchase the vessels from 18 shipowners.Nanjing Tanker said the move will help the company lower operating costs to deal with the current crisis.
Meanwhile, Nanjing Tanker will sell 5% equity in Sinotrans & CSC Finance Company to parent Sinotrans & CSC Group for RMB26.33m.
Nanjing Tanker reported a net loss of RMB984m in the first three quarters of this year, and the company estimates it will keep suffering from losses which means it will delist from the stock exchange. [30/12/13]
