On January 24, COSCO Shipping Energy Transportation released the “Plan for the Issuance of A Shares to Specific Targets for 2025,” proposing to issue A shares to no more than 35 specific investors, including COSCO Shipping Group. The funds raised will be invested in new ships.
The total funds raised from the stock offering will not exceed RMB 8 billion, which will be used to invest in the construction of six VLCCs, two LNG carriers and three Aframax crude oil tankers.
The project for six Very Large Crude Carriers (VLCC) has been approved during COSCO Shipping Energy Transportation’s 13th Board of Directors meeting in 2024. The construction will be carried out by its wholly-owned subsidiary, Hainan Energy Investment. In November last year, Hainan Energy signed a contract with Dalian Shipbuilding Industry Corporation(DSIC) for the construction of the six VLCCs, with a total value of RMB 5.748 billion.
The project of 2 LNG carriers has been considered and approved by the 9th Board of Directors meeting of COSCO Shipping Energy Transportation 2024. Its wholly-owned subsidiary, Shanghai COSCO Shipping LNG, and DSIC signed a contract for the construction of two 175,000 cbm LNG carriers in September last year, with a total cost of about RMB 3.43 billion.
The project for three Aframax crude oil tankers has been approved during COSCO Shipping Energy Transportation’s 2023 first independent directors’ special meeting, 2023 tenth board of directors meeting, and the 2024 first extraordinary shareholders’ meeting. The project would be carried out by its wholly-owned subsidiary, Hainan Energy. In December 2023, COSCO Shipping Energy Transportation signed a contract with COSCO Shipping Heavy Industry (Yangzhou) for the construction of three 114,000 DWT methanol dual-fuel Aframax crude oil tankers, with a total cost of approximately RMB 1.74 billion.