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Cosco, US client agree to delay delivery of 2 vessels to June 2016

By

Lee Meixianleemx@sph.com.sg@LeeMeixianBT

A China Ocean Shipping Company (COSCO) is loaded with containers in Newark Bay in Elizabeth, New Jersey, U.S. Shipbuilder Cosco Corporation on Thursday said it has agreed, in conjunction with its American shipowner customer, to extend the delivery dates of two vessels, originally scheduled for delivery in early 2014. 

PHOTO: BLOOMBERG

MAY 28, 20158:33 AM

SHIPBUILDER Cosco Corporation on Thursday said it has agreed, in conjunction with its American shipowner customer, to extend the delivery dates of two vessels, originally scheduled for delivery in early 2014.

This will be extended until June 30, 2016.

This is despite the fact that the construction of both UT 771 CDL Platform Supply Vessels (PSVs) are "significantly completed".

Under the agreement, the shipowner can choose to take delivery of any one or both of the completed PSVs at any time before June 30, 2016.

The two contracts were part of four vessels, worth over US$105 million in all, signed in early 2012.

Cosco had announced the completion and delivery of the other two vessels in December 2014 and February 2015 respectively.

The rescheduling in delivery is not expected to materially impact Cosco's net tangible assets and earnings per share in FY2015, it said.