China: COSCO Secures Four PSV Orders

March 22, 2012

Four shipbuilding contracts signed by COSCO (Guangdong) Shipyard Co., Ltd (a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co., Ltd) with an American ship owner for the construction of four UT 771 CDL Platform Supply Vessels (PSVs) have been made effective on March 15th 2012 at a value of over US$ 105 million in total.

Delivery of the above four vessels is expected to commence in early 2014.

In addition, commencing 15 March 2013, the ship owner has options to declare up to another six contracts for the construction of the same UT 771 CDL PSVs, which have a value of over US$ 160 million in total. The Company will make announcements as and when the shipbuilding contracts subject to such options are declared effective.

The above four contracts that have been declared effective are not expected to have a material impact on the net tangible assets and earnings per share of the Company for the financial year ending 31 December 2012.

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Source: COSCO, March 22, 2012; Image: Rolls-Royce