Runbang Ocean awarded a $92.2 million construction contract
2014-06-20 09:00
On June 13, 2014, Nantong Runbang Ocean Engineering Equipment Co., Ltd. and Nantong Runbang Engineering Shipbuilding Technology Co., Ltd., subsidiaries of Runbang Stock, as joint sellers, signed a "Construction Option Agreement for Engineering Vessels" (hereinafter referred to as the "Agreement", with the subject of the agreement referred to as "Optional Vessels") with Corretaje Maritimo Inc. of the Marshall Islands. Runbang Ocean is the builder. The total amount of the agreement is 92.20 million US dollars (calculated based on the central parity rate of USD to RMB on June 13, 2014, at 6.1503 yuan, approximately 567 million RMB), accounting for 24.67% of the company's audited operating income for 2013.
Main contents of the Agreement: The buyer has the right to request the builder to agree to construct the optional vessels. The specifications of the optional vessels are the same as the confirmed vessel, which is a 15,500 DWT mineral salt self-unloading ship with hull number M051005. The contract price for the optional vessels is 23.05 million US dollars per vessel, totaling 92.20 million US dollars. The option mentioned in this announcement refers to the buyer's right to request the builder to agree to construct 4 optional vessels. If the global economic recovery is slow in the future and the shipbuilding market experiences a downturn, the counterparty to this announcement's contract may choose not to exercise the option.
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