Chinese yard Hengli Shipbuilding Dalian has signed contracts for the construction of four very large crude carriers (VLCC).
According to a disclosure from its parent company, Guangdong Songfa Ceramics, the contracts recently became effective and are with an unnamed European shipowner.
The total value of the contracts is approximately $400 million to $600 million. The company has exempted the disclosure of the specific contract amount and the name of the shipowner, citing confidentiality agreements and listing rules.
The vessels are scheduled to be delivered sequentially starting from March 2028, and payment will be made in US dollars.
The company said that the normal fulfillment of the contracts is expected to have a positive impact on the company's future financial performance and will help consolidate its position in the VLCC market.
It noted however, that the long-term contract is subject to potential risks, including changes in the shipping market, customer demand, raw material prices, and currency fluctuations.
