$105 million in Cosco contracts now active

It covers the delivery of four vessels by its Chinese subsidiary to an American shypyard starting early 2014.

Another six contracts valued at $160 million have also been lined up with optios for declaration starting March 13, 2013.

"The Board of Directors of COSCO Corporation (Singapore) Limited (the “Company”) is pleased to announce that 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 15 March 2012 at a value of over US$ 105 million in total," said COSCO in a release.

"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," it added.

"None of the directors or controlling shareholders of the Company has any interest, direct or indirect in the contracts. 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," it said further.