7 billion bad debts? ! The two state-owned shipyards were "abandoned" due to the drag of offshore orders.

The cumulative losses of Shanzao Heavy Industry and Qingdao Wuchuan exceeded 2.6 billion yuan, and the poor performance also dragged down the performance of China Heavy Industry, the asset listing platform of CSIC, and finally had to be "abandoned" by listed companies. However, in addition to losses, due to the cancellation of a large number of offshore orders, there are still nearly 7.1 billion yuan in losses of offshore projects under construction in the two shipyards, which may be difficult to recover. China Heavy Industry announced in a paper that the losses of the two shipyards in offshore projects finally surfaced.

The loss exceeded 2.6 billion yuan, and the accumulated "bad debts" exceeded 7 billion yuan.

On the evening of December 19th, China Heavy Industry announced that it would sell 53.1% equity of Shanzao Heavy Industry and 67% equity of Qingdao Wuchuan held by Wuchuan Heavy Industry at zero consideration to China Shipbuilding Industry Corporation, the controlling shareholder.

according to the shareholder information, Shanhaiguan Shipbuilding Heavy Industry Co., Ltd. (Shanzao Heavy Industry) is a holding subsidiary of Shanchuan Heavy Industry, a wholly-owned subsidiary of China Heavy Industry Co., Ltd. (Qingdao Wuchuan) is a subsidiary of Wuchuan Heavy Industry, a wholly-owned subsidiary of China Heavy Industry.

China Heavy Industry explained that the sale was to avoid the negative impact of the continuous downturn in offshore business on the overall efficiency of the company. According to the announcement, Shanzao Heavy Industry and Qingdao Wuchuan have another zero profit in the past two years, totaling-2,616.96 billion yuan. The heavy losses of Shanzao Heavy Industry and Qingdao Wushu Ship have brought a certain drag on the overall benefit of China Heavy Industry.

In fact, in the past few years, the frequent cancellation and change of orders for offshore projects have brought heavy losses to Shanzao Heavy Industry and Qingdao Wushu. These irrecoverable losses of offshore orders are even equivalent to twice the net loss of the shipyard.

China Heavy Industry said that the offshore platforms under construction of Shanzao Heavy Industry and Qingdao Wuchuan occupied a lot of funds of China Heavy Industry. Both shipyards face the problem of difficult disposal of offshore platforms under construction. Among them, the offshore project of Shanzao Heavy Industry Co., Ltd. may bring more than 5.7 billion yuan in losses, which is equivalent to about twice its total net loss of 2.663 billion yuan since 214; The loss of Qingdao Wushu in the offshore field may be close to 1.4 billion yuan, and its net loss from 216 to now is about 965 million yuan. The two shipyards lost nearly 7.1 billion yuan in offshore projects.

The report shows that the two shipyards have transferred their main assets to Shanchuan Heavy Industry and Qingdao North Ship respectively, and there will be no new shipbuilding contracts in the future, only the current hand-held orders will be completed, and the subsequent business plans have not yet been determined. At present, the projects under construction of Shanzao Heavy Industry and Qingdao Wushu Ship both contain a large number of offshore platforms that are difficult to deliver, and the losses of these offshore projects also account for a significant share of the losses of the two shipyards.

about 5.7 billion yuan has not been recovered, and four jack-up drilling platforms of Shanzao Heavy Industry Co., Ltd. have been cancelled.

The offshore projects under construction of Shanzao Heavy Industry Co., Ltd. include four CJ5 jack-up drilling platforms, with a total price of about 872 million US dollars (about RMB 6.24 billion). However, under the circumstances that the first three platforms have been cancelled and the fourth platform is likely to be cancelled, Shanzao Heavy Industry Co., Ltd. only received 5% advance payment.

It is understood that in 213, Shanzao Heavy Industry Co., Ltd. and China Shipbuilding Industry International Trading Company, as joint sellers, signed the construction contract for two CJ5 jack-up drilling platforms (CJ5-1/2) with Singapore shipowner FTS DERRICKS PTE LTD Then, on September 2, 213, the two parties signed a construction contract for two CJ5 jack-up drilling platforms (CJ5-3/4). The price of each platform is US$ 218 million (about RMB 1.56 billion).

At that time, this order was the first time for Shanchuan Heavy Industry to build CJ5 platform, and it was also the first time for China to undertake a new platform, all of which realized automatic control and had the international leading level. The project's engineering quantity and contract amount are the highest in the history of Shanchuan Heavy Industry.

according to the construction contract, the shipowner shall pay 5% down payment of USD 1.9 million (about RMB 752.8 billion) for each platform when the contract comes into effect, 5% progress payment of USD 1.9 million when the platform is launched, and the final payment and the contract price adjustment amount shall be paid when the platform is delivered. Shanzao Heavy Industry started construction of the first platform in November 213, and four platforms were launched in succession from 216 to 217. However, when these four platforms were launched, the shipowner refused to pay the due 5% progress payment.

after launching, these four platforms are currently in a shutdown state, and installation and commissioning work has not been continued. According to the international shipping network, Shanzao Heavy Industry has only received 5% advance payment for four platforms CJ5, each of which is 1.9 million US dollars, accounting for 43.6 million US dollars. The amount of USD 43.6 million (about RMB 31.119 million) paid when the platform was launched has not been paid to Shanzao Heavy Industry.

since the construction of these four platforms in 214, the annual losses of Shanzao Heavy Industry have continued to expand, with the net losses increasing from 28.557 million yuan in 214 to 73.6977 million yuan in 215, 679.8893 million yuan in 216, 745.1556 million yuan in 217 and 218 from January to October. The loss of 5.7 billion yuan brought by these four platforms is almost twice the net loss.

in may 217, shanzao heavy industry and the shipowner agreed to terminate the construction contracts of the first three platforms. due to the termination of the construction contracts, shanzao heavy industry can dispose of the first three platforms by resale or lease. According to the International Shipping Network, for the fourth platform, Shanzao Heavy Industry is still communicating with the shipowner. If the communication fails, both parties will also terminate the contract, and then Shanzao Heavy Industry can also dispose of the platform through resale or lease. However, after June 217, these four platforms have not made any new progress in construction and commissioning, and have been idle in the shipyard.

The loss was nearly 1.4 billion yuan, and several offshore projects under construction in Qingdao Wushu Ship ran aground

Similar to Shanzao Heavy Industry, Qingdao Wushu Ship also faced various problems caused by the difficulty in delivering offshore orders under construction. The grounding project of Qingdao Wushu includes two underwater robot support vessels (RSV) and a jack-up drilling platform. Due to the cancellation and change of orders, these offshore projects may bring losses of nearly 1.4 billion yuan to Qingdao Wushu.

in the past few years, Qingdao Wushu has been losing money, with net profit of-197,933,2 yuan in 216,-174,671,7 yuan in 217 and-592,34,2 yuan in January-October 218, totaling-965 million yuan. Obviously, the huge loss of offshore projects is undoubtedly an important reason for the continuous loss of Qingdao Wushu.

on April 16th, 215, Qingdao Wushu Ship signed a contract with TOISA LIMITED, a Greek shipowner, for the construction of two RSVs. The dynamic positioning and lifting equipment of these two RSVs are the most advanced robot support ships in the world. The price of each RSV is US$ 55 million (about RMB 379.85 million), and the contract amount is US$ 11 million. However, it is reported that the actual construction cost of related RSV is likely to exceed $6 million.

according to the international shipping network, the original delivery date of these two RSV ships was in mid-217. However, with the bankruptcy and reorganization of the shipowner TOISA, in June 218, Qingdao Wushuan received a notice from the shipowner and unilaterally requested to terminate the two RSV contracts. After that, Wuchuan contacted new buyers for two RSVs through the shipping trading company. At present, a preliminary sales intention contract has been signed. It is estimated that each ship can earn 292.4 million yuan (about 42 million dollars), which is more than 1 million dollars (about 69.6 million yuan) lower than the original contract price and 18 million dollars (about 124.32 million yuan) lower than the actual construction cost of 6 million dollars. This means that Qingdao Wushu may have lost 13 million yuan in the construction of these two RSVs.

In addition, in November 213, Qingdao Wushu signed a contract with Singapore shipowner BLUE OCEAN DRILLING Company to build a CJ46 jack-up drilling platform, which was the first time that Wushu was used as the general contractor to build mainstream offshore engineering drilling and production equipment. However, the delivery time of the platform has been postponed repeatedly, from the original December 16, 215 to May next year at the latest.

the total contract amount of this jack-up drilling platform was USD 199 million. Considering that the drilling platform built by China Shipyard usually only needs to pay 5% to 1% in advance, most of the rest will be paid at the time of delivery. There may still be nearly $18 million (about RMB 1.243 billion) unpaid for this platform of Qingdao Wushu.

The oil price is unstable, and the recovery of the offshore market is far away. These offshore projects under construction of Shanzao Heavy Industry and Qingdao Wuchuan are likely to continue to run aground, making it difficult to find a way out; Even if it is successfully sold in the future, it may be difficult to recover all the heavy losses caused by huge costs. Although China Heavy Industry can greatly "improve" the company's profits by selling two shipyards, offshore projects may still be the main factor affecting the future performance of CSIC.