(Yicai) June 27 -- Chinese energy shipping giant China Merchants Energy Shipping has unveiled plans to invest CNY1.1 billion (USD145 million) for the construction of two large bulk carriers to further expand its ocean-going fleet capacity.

China Merchants Energy’s subsidiary Hong Kong Ming Wah Shipping signed a deal with Qingdao Yangfan Shipbuilding for the latter to build two Newcastlemax bulk carriers with multiple energy-saving and environmentally friendly features and a deadweight capacity of 210,000 tons each, the Shanghai-based parent company announced yesterday.

The vessels, which Hong Kong Ming Wah will pay in five installments in US dollars, are scheduled to be delivered from the second half of 2027, China Merchants Energy noted.

Shares of China Merchants Energy [SHA: 601872] were trading down 1.9 percent at CNY8.15 (USD1.12) as of 2 p.m. in Shanghai today.

This was the second bulk carrier order placed by China Merchants Energy in less than one month. On June 13, it announced that Hong Kong Ming Wah ordered eight Newcastlemax bulk carriers with a deadweight capacity of 210,000 tons each from Jiangsu New Times Shipbuilding.

China Merchants Energy expects the deliveries of the dry bulk carriers it ordered last year to start next year, improving the heterogeneity of its fleet, the firm noted, adding that its competitiveness in the bulk cargo market will increase as its fleet steadily expands.

The company revealed on June 12 that it plans to sell its container shipping and vehicle roll-on/roll-off transport assets to China’s Antong Holdings to better focus on its core oil, gas, and dry bulk materials shipping business.

China Merchants Energy’s dry bulk fleet transported nearly 98.9 million tons of cargo last year, bringing operating revenue of CNY7.1 billion, accounting for 28 percent of the total, according to the firm’s latest annual financial report. Its 93 bulk carriers had a deadweight capacity of almost 18.6 million tons as of the end of last year.

Editor: Futura Costaglione