On June 15th, Udupi Cochin Shipyard Limited (UCSL), a wholly owned subsidiary of Cochin Shipyard has bagged an international order from Wilson Shipowning AS, Norway, for Design and Construction of 6 new generation diesel electric 3800 DWT general cargo vessel. The contract is signed with an option for additional 8 vessels, the company said in a press release.

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The “Future proof Dry Cargo Vessel” designed by Conoship International, Netherlands shall be constructed as a diesel electric vessel, ready for installation of Wind foil units and battery hybrid systems. These vessels are intended for the transport of general cargo at inland as well as coastal waters of Europe.

Wilson Ship management AS, a company headquartered in Bergen, Norway is among the largest short sea fleet in Europe and transports about 15 million tonnes dry cargo across Europe. It has a fleet of around 130 vessels ranging from 1500 to 8500 DWT. Udupi Cochin Shipyard Limited (UCSL) is also active

in the markets for harbour tugs, offshore and fishing vessel segments.

The “Future proof Dry Cargo Vessel” project is at an approximate cost of Rs 580 crores. The first vessel will be delivered by December 2024 and thereafter deliveries will be completed within March 2026.

In the fourth quarter of financial year 2022-23, the company witnessed execution challenges and changes in its order composition which led to weak financials results. Consolidated revenues declined 50 percent year on year to Rs 600 crore, while the company declared losses of Rs 64 crore on an operating level. The net profitability nosedives 86 percent to Rs 39 crore during the quarter.

The stock is trading 2.5 percent higher at Rs 563 per equity share on the exchanges at 1 pm on June 15th.