Korea Offshore & Shipbuilding order target increased by 28%
Daewoo Shipbuilding and Samsung Heavy are also expected to be at last year’s level
Expect to place large-scale projects such as Qatar
Hyundai Heavy’s offshore division has no expectations
[서울=뉴스핌] Reporter Seo Young-wook = The three shipbuilding companies (Korea Shipbuilding & Marine Engineering, Daewoo Shipbuilding & Marine Engineering, and Samsung Heavy Industries) set the target for new orders this year at a level similar to that of the previous year, and will start aggressive management. The Korean shipbuilding industry, which showed a last-minute support last year, is planning to continue its momentum as it is expected that orders for’benefit products’ such as LNG carriers and container ships will continue this year.
According to the shipbuilding industry on the 6th, Korea Offshore & Shipbuilding has set the goal of winning the entire project this year to $16.7 billion. By business division, shipbuilding costs $1.28 billion, engine machines $1.59 billion, plants $80 million, and offshore $20 million.
It set the target value by 14.1% lower than the order target set by Korea Shipbuilding & Marine Engineering (US$1.49 billion) at the beginning of last year. However, this is a 28% increase from $13.80 billion, which Korea Offshore & Shipbuilding had lowered in October due to concerns about the impact of Corona 19.
As large-scale project orders resumed from the second half of last year, this year reflects the expectation that the situation will improve from last year. According to the shipbuilding industry, global ship orders last year reached 19 million CGT, down 34% from the previous year. On the other hand, this year’s order volume is expected to recover to the previous year’s level at 30 million CGT.
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| 14,500 TEU-class super-large container ship built by Hyundai Heavy Industries [제공=한국조선해양] |
The shipbuilding division increased by 40.9% from last year’s revised plan. According to the three companies under Korea Shipbuilding & Marine Engineering, Hyundai Heavy Industries is worth 6.6 billion dollars, Hyundai Samho Heavy Industries is 4.18 billion dollars, and Hyundai Mipo Shipbuilding is 3.5 billion dollars. This is an increase of 47.7%, 35.3%, and 36.7% from last year’s revised plan, respectively.
According to Clarkson Research, an analysis agency for the shipbuilding industry, orders for new construction this year are expected to reach 96 million DWT, recovering from 2017 to 2018 levels. In particular, orders for large projects such as the Qatar LNG project, which three Korean shipbuilders have signed a slot contract with, are expected to continue.
According to Hi Investment & Securities, it is predicted that three Korean shipbuilders will receive orders for about 75 ships by ordering 80 LNG carriers in Qatar, Nigeria and Mozambique projects this year. LNG carriers require high technological prowess such as LNG liquefaction technology, so they are a representative’filial piety’ product that Korean shipbuilders have unrivaled competitiveness.
Orders for container ships, another good product, are also expected to recover rapidly after the second half of last year, resulting in 187 ships this year. Korea’s three shipbuilders, including Korea Shipbuilding & Marine Engineering, are leading the market in this field by delivering the world’s first LNG-powered large tanker and LNG-powered ultra-large container ship.
On the 5th, Korea Shipbuilding & Marine Engineering signed a contract for 6 ultra-large container ships with 15,000 TEU-class LNG for 900 billion won, and succeeded in winning the first order.
Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries, which have not yet announced their order targets for this year, are also expected to set targets of 7 to 8 billion won, similar to last year. The two companies did not lower their order targets last year.
On the other hand, unlike the shipbuilding division, the offshore division is expected to continue to stagnate.
Korea Shipbuilding & Marine Engineering has set a target for orders in the offshore sector of $20 million, down 99% from last year ($1.83 billion). It has lowered its target to $643 million, which is more than half of its revised target last year, and it is analyzed that the expectation for new orders this year has been stopped.
This is because the new oil field development project has been completely stopped as the low oil price situation continues in the aftermath of Corona 19. Accordingly, Hyundai Heavy Industries, which was in charge of the offshore business, launched the shipbuilding and offshore division by integrating the shipbuilding division and the offshore division, which had been separately operated in July, and began to slim down the organization.
An official of Korea Shipbuilding & Marine Engineering said, “The demand for eco-friendly ships is increasing due to the strengthening of environmental regulations. We will focus our capacity to win orders, focusing on high value-added, eco-friendly ships such as LNG carriers, including container ships that are expected to recover in the market this year.” said.