Cosco Corp

Cosco Corp: Responds to articles in the Straits Times on 30 June and Bloomberg on 27 June.The Straits Times article mentions that the co faces possible customer defaults and order cancellations from Europe. The article in Bloomberg states that one of the co’s customers, a company within the Sevan Drilling ASA group, has rescheduled payment terms for an oil rig under construction. Co recognises that business conditions have remained difficult and orderbook is subject to revision from its cancellation and rescheduling of orders. With respect to the Bloomberg article co has so far faced no revision to its contract btwn subsi COSCO Qidong and Sevan Drilling. Cosco Corp currently trades at 18.0x P/E, peer YZJ at 5.1x P/E