Cosco Shipping invests $434m in new oil tankers

Cosco Shipping Energy Transportation (HKEX: 1138) has announced shipbuilding contracts totaling RMB3.392 billion (approximately $434 million USD) for the construction of six new oil tankers. The agreements, entered on February 14, 2025, involve COSCO SHIPPING Heavy Industry (Dalian) and COSCO SHIPPING Heavy Industry (Yangzhou). Two Panamax crude oil/product oil tankers will be built by Dalian for RMB912 million, while two Aframax and two LR2 crude oil tankers will be constructed by Yangzhou for RMB1.220 billion and RMB1.260 billion, respectively. Delivery is expected between September 2027 and September 2028. The transactions qualify as connected transactions due to COSCO SHIPPING's controlling stake in both the Company and the shipbuilders. An EGM will be convened for shareholder approval. The purchase aims to modernize the fleet and enhance the Company's ESG profile, funded 80% through external financing and 20% through internal resources.