CSBC Corp, Taiwan (台灣國際造船) yesterday said it was optimistic about its repair business for this year after the shipbuilder secured NT$380 million (US$12.34) in government contracts to repair a military ship and a research vessel.
CSBC has signed an open contract to repair the Republic of China Navy’s Panshi, a fast combat support ship, with the deal covering all maintenance work for five years, CSBC president Tseng Kuo-cheng (曾國正) told the Taipei Times by telephone.
An open contract is an agreement in which terms and clauses can be changed or modified without mutual consent among the signatories.
“Usually there is no settled price in an open contract, but the Ministry of National Defense has made it clear that the repair budget for the Panshi would stand at NT$280 million,” Tseng said.
CSBC, which began work on the 20,000-tonne vessel in 2012, delivered the ship in 2015.
The company rarely signs open contracts, but won this one after the ministry said it was better that the ship’s builder do the repairs, Tseng said.
It was unclear what maintenance the ship needs this year, but CSBC expects to book steady revenue over the next five years, he said, adding that work would be done at its Kaohsiung facilities.
CSBC, the nation’s only listed shipbuilder, this month also signed a contract with the Council of Agriculture’s Fisheries Research Institute to repair the agency’s first fisheries research vessel, Tseng said.
“We did not see many rivals for the tender, as it is not easy to repair a 25-year-old vessel,” he said.
CSBC would need to complete the work at its Keelung facilities by the end of this year, he said.
“Overall, we have had a good beginning to the year and hope to win more repair contracts,” Tseng said.
Although maintenance only contributes 3 percent to 5 percent to CSBC’s overall revenue, the gross margin from such work is quite good, he said.
Meanwhile, CSBC said Orsted A/S had not notified it to suspend a contract to develop pin piles for offshore wind projects.
The Danish firm this month announced it was suspending its offshore wind projects in Taiwan after failing to receive an establishment permit for projects off the Changhua County coast and was unable to secure a power purchase agreement at last year’s feed-in tariff rate.
Separately, CSBC said that it would raise NT$2.25 billion in fresh funds to fuel development.
The company plans to issue 100 million new shares, with most of them to be purchased by a state-run institution, which it declined to specify.
The company’s state-owned stakeholders include the Ministry of Economic Affairs and China Steel Corp (中鋼).
They hold a combined 41.5 percent stake in CSBC, which would still be the largest stake after CSBC’s scheme is completed, the company said.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS