Intercontinental Shipping (02409) issued an announcement. On March 15, 2024 (after the Stock Exchange trading session), the buyer S...
According to Zhitong Financial App, Intercontinental Shipping (02409) issued an announcement. On March 15, 2024 (after the Stock Exchange trading session), the buyer Seacon Shipping Pte. Ltd. (an indirect wholly-owned subsidiary of the company) entered into a shipbuilding contract with the seller Wuhu Shipyard Co., Ltd., according to which the seller agreed to build a ship for the buyer at a cost of US$30.1 million.
The acquisition of ships under the shipbuilding contract is in line with the Group's strategy of continuously optimizing its fleet by phasing out its old control vessels and replacing them with newer ones and expanding its control fleet.
Since October 2023, ongoing conflict and unrest in Middle Eastern oil-producing countries has led to an increase in demand for oil transportation. Since the third quarter of 2023, the increase in the Baltic refined oil freight index reflects this. Furthermore, the company's management believes that the market conditions supporting the demand for chemical products will improve, thereby driving the increase in global demand for chemical product logistics services. By increasing the number of tankers/chemical tankers, the Group's transportation capacity for petroleum and chemical products will increase, and the company will be able to better meet the market demand for its petroleum or chemical product shipping services, generate additional revenue and create greater value and returns for the company's shareholders. The directors believe that through the acquisition of ships, the Group will be able to enhance its competitiveness in the shipping industry and meet the market demand for its shipping services.
Furthermore, compared to other bulk carriers currently operated by the Group, ships are more fuel-efficient and operate more efficiently, and meet the environmental regulations recently issued by the shipping industry and the requirements of current regulations.