London-based Kingfish Trading has cancelled an order for 11 tankers that were to be constructed at OSX Brasil’s Açu shipyard, OSX said in statement late Friday.
Kingfish ordered the 11 medium-range, 45,000 DWT tankers from OSX in March 2012 for $732 million. The vessels were to be built at OSX’s Açu port complex, which is under construction in northern Rio de Janeiro state.
OSX Brasil is the shipyard and ship leasing company controlled by Brazilian billionaire Eike Batista.
OSX also announced Friday that it will scale back the construction of its shipyard at Açu. In the statement, OSX said it still plans to build the Açu shipyard to its original size and scope, but it would limit ongoing construction to that necessary for current orders. Future construction, it added, will be dictated by future demand.
In addition, OSX’s board has decided to exercise part of a put option that will trigger a payment of $120 million by its controlling shareholder and said it had approved a new business plan to boost cash-generating activities by its ship-leasing business.
The moves are the latest in an ongoing process by companies across Batista’s energy, logistics and mining empire to retrench after missed profit and production targets and a consequent selloff by shareholders in recent months.
Sergio Spagnuolo from Reuters contributed to this article.