HONG KONG (Dow Jones)–China Rongsheng Heavy Industries Group Holdings (1101.HK) has secured orders to construct offshore rigs for an overseas company, as part of efforts to diversify from its traditional shipbuilding business, which has been hit by the global economic downturn, a person familiar with the situation said Friday.
The person told Dow Jones Newswires that the new contracts for offshore rigs mark Rongsheng’s entry into the rig-building sector. The person added that an official announcement on the contract win is expected by the end of May, without giving further details.
Industry newspaper Upstream Online earlier this month cited individuals in the industry saying that China Rongsheng had secured orders from Singapore-based PrimePoint Oil & Gas to build a semi-submersible barge rig and a tender barge rig for delivery in 22 and 24 months, respectively.
Barclays Research on Friday estimated the market value of the orders at US$300 to US400 million.
The global shipping industry has entered a downturn because of slower international trade. China Rongsheng, which competes with China state-owned shipbuilding giants China Shipbuilding Industry Corp. and China State Shipbuilding Corp, posted a 2011 net profit of CNY1.72 billion, up a mere 0.1% on the previous year, as demand for ships slowed.
To diversify its sources of income, the company has been switching its focus from building dry bulk and container vessels to value-added vessels, such as liquefied natural gas carriers and large-scale offshore engineering equipment, demand for which remains strong despite the overall depressed shipbuilding industry.
(Bloomberg) — Full repairs to three submarine internet cables damaged in the Red Sea in February are being held up by disputes over who controls access to infrastructure in Yemeni waters. The...
By Georgina McCartney HOUSTON, May 5 (Reuters) – As Big Oil returns this week to the industry’s annual showcase for offshore energy projects and equipment in Houston, deepwater discoveries off Guyana, Namibia and the...
Tidewater Inc. (NYSE:TDW), a leading global provider of offshore service vessels (OSVs), reported impressive first quarter results as day rates for OSVs continue to rise. Shares of Tidewater rose more...
May 3, 2024
Total Views: 698
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.