Yangzijiang Shipbuilding Group announced the successful sale of a jack-up rig to capitalize on the current favorable trend in offshore drilling rigs.
The price and the buyer of the Letourneau Super 116E Class design self-elevating rig have not been revealed, but the shipbuilder said the deal is expected to have a positive impact on its earnings.
Yangzijiang added that had the sale taken place in January last year, earnings per share for the 2022 financial year would have been 9.6% higher, and consolidated net tangible asset per share attributable to shareholders would have been 1.5% higher.
It is reported that Yangzijiang Shipbuilding Group first ventured into the offshore market in 2012 and concluded a contract for the construction of a Letourneau Super 116E class jack-up offshore jack-up drilling rig with Explorer I Limited, a subsidiary of Mena Offshore Investments, which is scheduled to be delivered in the second quarter of 2015,. The order is valued at $170 million with an additional option.
In March 2012, Yangzijiang Shipbuilding Group announced the establishment of Jiangsu Yangzijiang Offshore Engineering Co., Ltd (“JYOEC”). In the same year of its establishment, JYOEC signed a Letter of Intent (LOI) with SSP Asia, the Asian subsidiary of SSP Offshore Inc, for the construction of the shipyard’s first FPSO.
In response to the national policy of environmental protection and expansion of clean energy, Yangzijiang Shipbuilding Group decided to plan JYOEC as a construction base for clean energy vessels with high technology content and high value-added, such as LNG, LEG, LPG, etc. at the beginning of 2018. On September 10th of the same year, the first batch of six 82,000DWT bulk carriers of Yangzi Offshore & Marine first production ship ignited and started construction. This ship is not only the first ship made by Yangzijiang Shipbuilding Group in 5 years since it was put into operation, but also the first time for Yangzijiang Shipbuilding Group to utilize the flat-ground shipbuilding process which Korean counterparts are well versed in for the construction of ships.
According to the announcement released by Yangzijiang Shipbuilding (Holdings) Co., Ltd. on November 2, as of the end of September this year, Yangzijiang Shipbuilding Group 2023 annual new orders reached 86 ships, valued at 6.54 billion U.S. dollars, overfulfilling the annual new orders target target (3 billion U.S. dollars); hand-held orders reached 184 ships, valued at 14.82 billion U.S. dollars, the farthest delivery date is scheduled to 2028 years.
In specific terms, container ships are the main type of vessels for which Yangzijiang Shipbuilding Group has received orders, and as of the end of September this year, the hand-held order book for this type of vessels amounted to 83 vessels, valued at US$9.84 billion; followed by bulk carriers (hand-held order book of 50 vessels, valued at US$1.98 billion); tankers (hand-held order book of 37 vessels, valued at US$1.74 billion); and LNG/LPG/LEG carriers (hand-held order book of 14 vessels, valued at US$1.74 billion).
Currently, Yangzijiang Shipbuilding Group is committed to promoting product transformation and upgrading, and building green and clean energy high value-added vessels is the development strategy and direction of Yangzijiang Shipbuilding Group. The training center for LNG MARK III of Yangzijiang Shipbuilding Group was inaugurated in Yangzi Xinfu Shipbuilding on September 26th this year, which is an important milestone for the product transformation and upgrading of Yangzijiang Shipbuilding Group.
