(Yicai) Feb. 7 -- China Shipbuilding Industry Corporation's shares rose after the shipbuilder said it had inked deals worth almost USD1.8 billion to supply 14 very large crude carriers to two well-known European shipowners. 

CSIC [SHA: 601989] gained 2.4 percent to close at CNY4.29 (60 US cents) a share today, after earlier rising by as much as 3.1 percent. The wider Shanghai market rose 1.4 percent.

CSIC unit Dalian Shipbuilding Industry will build the vessels, with the contracts for six conventional fuel carriers and four dual-fuel liquified natural gas carriers having immediate effect, its parent company said late yesterday. The other deals give the option for two conventional fuel and two dual-fuel LNG ships, it added.

The agreements will not have a big effect on CSIC's earnings this year because the contract period is long and deliveries will likely start at the end of 2026, the Beijing-based company said, noting that their are equal to about 29 percent of CSIC's audited revenue in 2022 based on current exchange rates.

The VLCCs will be custom-made upgrades based on the buyers’ requirements, CSIC noted, without disclosing the names of the clients. Signing and executing the contracts will help CSIC to secure a market share in the field of VLCC construction, it pointed out.

Dalian Shipbuilding mainly builds VLCCs and has delivered 117 to domestic and overseas buyers, ranking it first among Chinese shipbuilders, CSIC said.

Editor: Martin Kadiev