China Merchants Energy Shipping guarantees subsidiary's $522.6m shipping contract
China Merchants Energy Shipping Co., Ltd. (CMES) has announced a performance guarantee for its wholly-owned subsidiary, Yangtze Navigation (Singapore) Pte., Ltd. (Changhang Singapore), for a long-term bulk carrier contract of affreightment (COA). The guarantee, totaling up to $522.6m, ensures Changhang Singapore's fulfillment of its paper pulp transportation obligations under a COA agreement with a major pulp cargo owner, spanning up to 15 years. This move, approved by CMES's board of directors, supports a core operational activity.
The guarantee falls within CMES's pre-approved authorization for subsidiaries with a debt-to-asset ratio above 70%, utilizing a portion of the $3.735bn total authorized guarantee amount for 2025-2026. As of the announcement date, CMES's total outstanding external guarantees, including this new commitment, amount to $514,888,160, representing 92.43% of its most recent audited net assets. The company's total guarantees for its controlled subsidiaries stand at $428,642,310, or 56.29% of its net assets, with no overdue guarantees.
Changhang Singapore, 100% indirectly owned by CMES, has a negative net asset value of $-184m as of September 30, 2025, and a debt-to-asset ratio exceeding 70%. CMES emphasizes that Changhang Singapore's daily operations and decision-making are under effective control, mitigating the guarantee's risk.
This report was generated by FilingReader's AI system from regulatory filings and company disclosures. To request a correction, contact editorial@filingreader.com
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