Shanghai-listed China Merchants Energy Shipping (CMES) acknowledged risks that its human resources and management levels face difficulties to meet the demand for its rapid development in the short term, in the wake of fleet expansions.
The growth in the company’s fleet size will raise difficulties for safety management, a stock filing of CMES said on 28 May.
The relevant problems are likely to restrict the company’s development if not promptly resolved, CMES said.
CMES made the statement as it is planning to raise CNY2 billion (USD322 million) in a private placement to fund the acquisition of five very large crude carriers (VLCCs) and six bulk carriers.
In March, CMES said it aimed to double its revenues in 2015 from 2014 to CNY5.4 billion with the deliveries of newbuilds after a rash of scrapping of old tonnage last year.
In 2014, CMES’ revenues rose 1.4% year on year to CNY2.6 billion.
The VLCC fleet of CMES expanded in 2014 as it took over the vessels from Sinotrans&CSC. All the VLCCs are operated by China VLCC, a joint venture between CMES and Sinotrans&CSC. The fleet of China VLCC totals 34 currently.