(Yicai) June 14 -- Shares of China Merchants Energy Shipping fell after the state-owned energy shipper said it plans to enhance its dry bulk fleet and green operations by ordering eight large bulkers at a total cost of CNY4.4 billion (USD606 million).

China Merchants Energy [SHA: 601872] ended down 2.9 percent at CNY8.42 (USD1.16) a share in Shanghai today, after earlier sinking by as much as 4 percent.

China Merchants Energy's unit Hong Kong Ming Wah Shipping has signed a deal with New Times Shipbuilding, which will build eight Newcastlemax bulk carriers of 210,000 tons deadweight each, the Shanghai-based parent company announced late yesterday.

The vessels will incorporate multiple energy-saving and environmentally friendly designs, China Merchants Energy noted. Deliveries are scheduled to begin in 2028, with HKMWS to make five payment installments in US dollars for each ship, it added.

China Merchants Energy also expects deliveries of the dry bulk carriers it ordered last year to start in batches from next year, improving the vessel types and age of its fleet, the firm noted, adding that as its fleet steadily expands, its competitiveness in the bulk cargo market will grow further.

The company also revealed yesterday that it plans to sell its container shipping and vehicle roll-on/roll-off transport assets to Antong Holdings to better focus on its core business. China Merchants Energy mainly ships oil, gas, and dry bulk materials.

The firm’s dry bulk fleet moved 98.88 million tons of cargo last year, bringing operating revenue of CNY7.1 billion, accounting for 28 percent of its total, according to the firm’s annual financial report. Its 93 bulk carriers had a 18.56 million tons deadweight as of the end of 2023.

Editor: Martin Kadiev