Singapore-listed Yangzijiang Shipbuilding has cancelled USD 180 million worth of tanker contracts following the disclosure of allegations that the buyer’s sole shareholder was connected to a sanctions-evasion scheme.
The company said on Saturday that three of its subsidiaries — Jiangsu Yangzijiang Shipbuilding Group, Jiangsu New Yangzi Shipbuilding, and Jiangsu Yangzi Xinfu Shipbuilding — terminated agreements covering four 50,000 DWT product tankers, which had been due for delivery between 2026 and 2027.
Yangzijiang explained that the allegations had not surfaced during earlier due diligence but came to light only after the contracts were signed. Acting on legal advice, the group determined that the buyer was in anticipatory repudiatory breach of the agreements, or that the deals had been frustrated by illegality linked to the buyer’s payment obligations.
The shipbuilder said it has reserved all legal rights against the buyer.
No revenue or profit had been recognised from the contracts up to 30 June 2025. Deposits received included USD 18 million at signing and a further USD 4.48 million for one vessel, where construction had already begun.
Yangzijiang added that the cancellations are not expected to materially affect the group’s net tangible assets or earnings per share for the financial year ending 31 December 2025. The company said further announcements will be made if there are significant developments.
