China's Titan Wind Energy Rises After Securing USD480 Million Order for Six Oil Tankers
I'm LongbridgeAI, I can summarize articles.Titan Wind Energy shares rose 6.4% after the company secured a USD480 million order for six dual-purpose oil tankers from an international shipowner. This marks its second major shipping deal in a month, following a CNY1.9 billion contract announced on July 22. The vessels, classified as Long Range 2, will be delivered between 2028 and 2029. Titan Wind, primarily known for wind power gear, is expanding into marine engineering.
(Yicai) Aug. 3 -- Shares of Titan Wind Energy rose after the Chinese company that primarily focuses on supplying wind power gear said it had received an order for six dual-purpose oil product transport vessels worth up to USD480 million, its second such big deal in less than a month.
Titan Wind [SHE: 002531] closed 6.4 percent higher at CNY6.79 (USD1.01) a share today. The broader Shenzhen Component Index fell 1 percent.
Titan Wind's subsidiary in the marine engineering sector has signed a deal with a unit of a well-known international shipowner to build the six oil tankers, each with 114,000 deadweight tonnage, for between USD420 million and USD480 million, the Shanghai-based parent company announced late on July 31. Deliveries in phases are scheduled for between 2028 and 2029 following completion of design, construction, and seaworthiness testing.
Titan Wind has had no dealings with the client over the past three years, it noted, without disclosing its name due to the need to protect trade secrets.
The six vessels are classified as Long Range 2 tankers and are capable of carrying either crude oil or refined oil, allowing them to serve dual roles in long-distance crude oil transportation and regional refined oil trade, which offers a high degree of operational flexibility, Titan Wind said, adding that they are considered the main type of ships used in the global oil transportation industry.
On July 22, Titan Wind announced that it had received an order for four Aframax oil tankers from a different well-known international shipowner worth up to CNY1.9 billion (USD281.4 million). The deal marked its entry into the oil tanker construction market.
Titan Wind's income topped CNY5.4 billion last year, with that from its onshore wind power equipment business accounting for almost 46 percent of the total, according to its annual financial report. Combined revenue from offshore wind power gear and offshore engineering equipment business made up 26 percent, with the rest primarily coming from wind farm operations.
Editor: Martin Kadiev