Cosco Shipping Energy Transportation (CSET) announced that it has received RMB355m ($54.9m) in government subsidy under the scrap-and-build policy.
CSET, the LNG and oil shipping operator of China Cosco Shipping Corporation (Cosco Shipping), said the subsidy amount will be recognised as a non-operating income and accounted into its 2017 financial year.
“It is expected that the subsidy will have a positive impact on the profit and loss of the group for 2017,” CSET stated.
Beijing introduced the scrap-and-build policy back in December 2013 to subsidise owners scrapping vessels ahead of their operational lifespan, and to build a new one as replacement.
The policy is due to expire on 31 December 2017, after a two-year extension from its original expiry year in 2015.