Fujian Guohang Ocean Shipping (Group), a Chinese dry bulk carrier owner, plans to expand into the oil shipping business by setting up an oil carrier in Tianjin, China.
The company said it has taken into consideration its management experience, client resources, and the overall situation of the oil shipping market, a statement of the company said on 28 August. The planned subsidiary will have a registered capital of CNY30 million (USD4.7 million).
In the first six months in 2015, Fujian Guohang’s loss widened 89% year on year (y/y) to CNY134.1 million because of a slump in revenue and high cost.
Its revenue slipped 55% y/y to CNY290.4 million owing to the depressed coastal bulk shipping market and decommissioning of three bulk carriers since the end of 2014.
Also, the company has delayed CNY104.0 million in hire payment to Minsheng Financial Leasing from March 2014 to June 2015.
The company is in talks with Minsheng Financial Leasing to extend the payment deadline and restructure its debt.