KSOE & SHI Surpass 2021 Target With $1.3b Vessels Deal

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  • South Korean shipbuilding companies successfully won large ship orders.
  • KSOE and Hyundai Heavy Industries Group’s intermediate holding company for shipbuilding business has won 1.36 trillion won of orders to build 12 ships.

Korea Shipbuilding & Offshore Engineering (KSOE) and Samsung Heavy Industries have already won more orders than they did for the whole of 2020, reports the Dong-a Ilbo.

KSOE wins orders for high value-added vessels

KSOE, the holding company in the shipbuilding sector of Hyundai Heavy Industries Group, won orders for a total of 12 ships for 1.36 trillion won on May 28 and 31. In particular, the orders included five LNG carriers, which are high value-added vessels.

KSOE has booked US$10.8 billion in orders for 122 ships (including two offshore plants) so far this year, achieving 72 percent of its annual order goal of US$14.9 billion. The figure stood above the 106 ships the company won in 2020. Excluding offshore plants, the company won orders for 120 ships (US$9.6 billion) in 2021.

₩500b containership contract

Samsung Heavy Industries also signed a contract for four container ships at 529 billion won, raising its order intake to 48 units or US$5.9 billion in 2021. That is 65 percent of this year’s target of US$9.1 billion.

In addition, the figure eclipsed US$5.5 billion in orders in 2020 and is a nine-year high for the January-May period since the US$6 billion won in 2012.

DSME remains sluggish

Among the three shipbuilders, Daewoo Shipbuilding & Marine Engineering (DSME) has been relatively sluggish compared to the two other companies. But as ship prices continue to rise, it can expect higher profitability from future orders.

So far this year, DSME has won orders for a total of 26 vessels, including 11 VLCCs and 9 VLGCs, attaining 35.6 percent of this year’s target of US$7.7 billion.

Industry watchers say that the newbuilding price is rising on the back of a stream of new orders and an uptrend in commodity prices. They also note that large orders for LNG carriers are likely to be placed this year.

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Source: Dong-a Ilbo

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