Yangzijiang Shipbuilding Secures \$2.63 Billion in New Contracts

Yangzijiang Shipbuilding (Holdings) Ltd., a prominent player in the shipbuilding industry, has announced a significant boost to its orderbook with the acquisition of contracts for twenty-one new vessels. These contracts are valued at a substantial US\$2.63 billion.

The newly secured contracts include six LNG dual-fuel 17,000TEU containerships, six methanol dual-fuel 13,000TEU containerships, four 39,000DWT Medium Range oil tankers, two 4,300TEU containerships, and three 45,000DWT bulk carriers. Deliveries for these vessels are primarily slated for between 2027 and 2029.

Despite this significant order, the contracts are not expected to have a meaningful impact on the Group’s earnings for the financial year ending 31 December 2024. However, the cumulative impact on future earnings could be substantial, given the long-term nature of these projects.

In a year-to-date summary, Yangzijiang Shipbuilding has secured a total of 119 effective shipbuilding contracts, representing an aggregate value of US\$14.27 billion. This robust orderbook highlights the company’s competitive position and potential for future revenue growth.

For shareholders, it’s important to note that none of the company’s directors or controlling shareholders have any direct or indirect interest in these contracts beyond their shareholdings in the company. This transparency should provide confidence in the management’s commitment to shareholder value.

This development could be of interest to investors, as the substantial value of these contracts might influence the company’s share price, given the potential for increased future earnings and strengthened market position.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.