Cosco Shipping Energy Transportation receives $55m subsidy for fleet renewal

Cosco Shipping Energy Transportation (CSET) announced that it has received RMB355m ($54.9m) in government subsidy under the scrap-and-build policy.

CSET, the LNG and oil shipping operator of China Cosco Shipping Corporation (Cosco Shipping), said the subsidy amount will be recognised as a non-operating income and accounted into its 2017 financial year.

“It is expected that the subsidy will have a positive impact on the profit and loss of the group for 2017,” CSET stated.

Beijing introduced the scrap-and-build policy back in December 2013 to subsidise owners scrapping vessels ahead of their operational lifespan, and to build a new one as replacement.

The policy is due to expire on 31 December 2017, after a two-year extension from its original expiry year in 2015.

Posted 25 September 2017
Lee Hong Liang

Asia Correspondent