China Merchants Energy Shipping (CMES) has received a total of CNY741 million (USD116 million) in government subsidies granted for demolitions of old tonnage and fleet renewals.
The government subsidies will be positive for the company’s full-year results in 2015, a stock filing of CMES said.
Also, CMES has postponed the planned demolition of two old tankers by June 2016. In March, CMES said it planned to dismantle the two old Aframax crude tankers.
In addition, the company said in March it planned to dispose of six old bulk carriers in the second hand market. In the first half of 2015, CMES sold two aged 49,000 dwt bulk carriers – 1996-built Pacific Mercury and 1995-built Pacific Acadian for an aggregate of CNY54.4 million.
As of 30 June, CMES’ VLCC fleet totalled 34 in operations with another 11 on order. The company also owns seven Aframaxes. Its bulker fleet comprises seven Capesizes and six Supramaxes, with 12 Supramax newbuilds on order. Its LNG tanker fleet remains at six, with 10 newbuilds on order.