the Korean shipbuilding industry

Korean Shipbuilders Selectively Receive Orders for High-Value-Added Ships

Receiving many orders for large oil tankers including
ammonia and LNG carriers

South Korea’s top shipbuilders are set for a sharp earnings rebound.
According to financial information company FnGuide, the combined operating profit of HD Korea Shipbuilding & Offshore engineering, Hanwha Ocean and Samsung Heavy Industries is projected to reach KRW 1.9221 trillion in the first quarter, up 54.9% year on year. Combined revenue in the same period is forecast to rise 13.6% to KRW 14.0996 trillion.

By company, HD Korea Shipbuilding & Offshore Engineering is expected to post revenue earnings of KRW 7.7866 trillion in the first quarter, up 14.99%, and operating profit of KRW 1.1902 trillion, up 38.53%. Hanwha Ocean’s revenue in the first quarter is projected to reach KRW 3.3020 trillion won, up 5.06%, with operating profits rising 48.22% to KRW 383.3 billion.
Samsung Heavy Industries is forecasted to record the strongest profit growth, with revenue of KRW 3.0110 trillion (up 20.71%) and operating profit of KRW 348.6 billion (up 183,24%).
The three shipbuilders have concentrated on selectively receiving orders for high-margin vessels such as liquefied natural gas (LNG) carriers, liquefied petroleum gas (LPG) and ammonia carriers, and very large crude carriers (VLCC).
HD Korea Shipbuilding & Offshore Engineering secured orders for 54 vessels worth USD 5.94 billion in the first quarter, achieving 25.5% of its annual target (USD 23.31 billion). Its diversified portfolio includes 10 LNG carriers, 20 container ships, five LPG and ammonia carriers, seven crude oil tankers and 12 petrochemical carriers (PC carriers).
Samsung Heavy Industries won orders for 16 vessels, including six LNG carriers, two very large gas carriers (VLGC), four crude carriers, and two containers, worth USD 3.1 billion ― thereby reaching 22.3% of its annual target (USD 13.9 billion).
Hanwha Ocean secured orders for 12 vessels, including four LNG carriers, seven VLCCs and one offshore wind installation vessel, worth USD 2.43 billion.
This momentum has continued into the second quarter. HD Korea Shipbuilding & Offshore Engineering recently added new orders for four LPG carriers and eight PC carriers, worth KRW 1.2008 trillion, bringing cumulative orders to USD 6.74 billion (66 vessels), representing about 29% of its annual target.

 
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