Cochin Shipyard Secures €60 Million Deal to Build Hybrid SOVs for North Star Shipping

Cochin Shipyard Ltd (CSL) is the largest shipbuilding and maintenance facility in India. The services provided by the shipyard are building platform supply vessels and double-hulled oil tankers. The shipyard has begged orders worth €60 Million of hybrid SOVs from a UK-based offshore renewable operator. The shares of Cochin Shipyard are up by more than 240% over the last six months.

About The Order

On Monday, The state-owned Cochin Shipyard Limited announced that it has secured another international order from North Star Shipping, a leading UK-based offshore renewable operator. The contract is for the construction of a hybrid Service Operation Vessel (SOV) to be deployed at the Scottish Power Renewables East Anglia Three offshore wind farm off the Suffolk coast, under a contract with Siemens Gamesa. 

This agreement includes an option for two additional vessels. Earlier this year, North Star also contracted CSL for another hybrid SOV. The vessels are equipped with a fully electric azimuth propulsion system, a 3D motion-compensated gangway system that forms the mission equipment. The vessels are to be classed with DNV Norway.

Chairman of CSL on this Order

Madhu Nair, the Chairman and Managing Director of CSL referring to this order has said,” Cochin Shipyard Ltd (CSL) is extremely happy to be chosen again as the preferred partner for North Star and is participating to achieve its goals of North Star in the offshore renewable segment. CSL is committed to building high-quality products with a focused interest in sustainable solutions to serve the evolving maritime markets.”

Conclusion:  The stock has maintained a strong order book position and has been active in the international shipbuilding arena for more than two decades and delivered around 50 high-end vessels to countries like the US, Germany, the Netherlands, Norway, Denmark, and those in West Asia. With this, the overall image of the company looks positive for the upcoming years. The stock currently trades at Rs.1911.70 a piece and is up by more than 180% in 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.