Greater China

Shanghai Bestway’s 200 vessel contract shelved

Shanghai: Shanghai Bestway Marine Engineering Design is reportedly facing difficulties executing the RMB650m EPC contract it recently announced from affiliated company Green Power Water Transport Co for 200 LNG-powered vessels to be built at its affiliated shipyard Dajin Heavy Industries.

According to the contract, Shanghai Bestway was supposed to received the first payment of RMB130m one week after the signing of the contract, however, the company has not received any payment so far. Stock investors of the company are deeply concerned as the stock price of the company has been dropping instead of increasing since the announcement of the contract.
Ma Rui, board secretary of Shanghai Bestway said that the delay in payment was due to disagreement between the shareholders of Green Power Water Transport, and that currently the relevant parties are coordinating with each other.
Green Power Water Transport was established in May this year, with Shanghai Bestway and its subsidiary Shanghai Walking LNG holding 25% and 10% equity respectively in the company.
Ma wasn’t able to give an exact time to execute the contract, but he said company will make an announcement if there’s any progress.
Meanwhile another subsidiary Shanghai Bestway Marine Technology Development has signed EPC contracts with Shanghai Changhai Shipping for two 8,000hp AHTS vessels. The price for each vessel is RMB120m and deliveries are scheduled in March and May of 2016.
Shanghai Bestway holds 80% equity in Shanghai Changhai Shipping. [01/09/14]



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