Cosco Corp secures letter of intent for contracts worth over $498 million

Shipbuilder Cosco Corporation has clinched a letter of intent to build two semi-submersible accommodation vessels with options for four more units.

The letter of intent is from a subsidiary of Prosafe SE, a company listed on the Oslo Stock Exchange, and covers two potential contracts that are worth more than US$200 million (S$249 million) each, the company said in a filing to the Singapore Exchange on Friday.

The vessels, which will be equipped with 500 beds, 10-point chain mooring and 300 ton cranes, are scheduled for delivery in 2016.

Cosco said the letter of intent is not expected to have a material impact on the net tangible assets and earnings per share of the company for the current financial year.

Cosco shares were one cent lower at 74 cents as at 11am.