DSME and Samsung Heavy add $2.6 bn LNG carriers to swelling order books

[Source: Daewoo Shipbuilding & Marine Engineering Co.]

Daewoo Shipbuilding & Marine Engineering Co. (DSME) and Samsung Heavy Industries Co. each added 2.37 trillion won ($1.7 billion) and 1.17 trillion won worth contracts to their swelling order book for liquefied natural gas (LNG) carriers, upping the chance of South Korean shipbuilders reclaiming No. 1 rank in global vessel orders this month after losing it to China last month.

DSME Tuesday disclosed it won seven orders for LNG tankers for 2.37 trillion won for delivery by February 2026. Although it has not specified where the orders came from, they are believed to be related to Qatar slot.

Qatar¡¯s state oil and gas company QatarEnergy in June 2020 signed contracts with three Korean shipbuilding majors for dockyard slots capable for producing more than 100 LNG carriers.

DSME has been assigned with 11 orders related to the Qatar project. Its order book so far this year has reached 36 – 28 LNG carriers, 6 container carriers, and 1 offshore drilling facility -worth $8.17 billion, nearing annual target of $8.9 billion.

Shares of DSME were 3.7 percent higher at 19,750 won by midday Tuesday.

Samsung Heavy Industries, also under the contract, disclosed Tuesday that it received 1.17 trillion won worth of orders to build four LNG carriers – two bound for Bermuda and two for Africa. The carriers will be delivered by September 2025.

Samsung Heavy Industries has won orders to build 37 vessels this year, including the latest four, worth a total of $7.2 billion. The orders – 28 LNG carriers and 9 container carriers – are 82 percent of annual order target of $8.8 billion.

Shares of Samsung Heavy Industries were trading 1.75 percent higher at 5,830 won.

[Source: Samsung Heavy Industries Co.]

Korean shipbuilders won 760,000 compensated gross tonnage (CGT) orders in August, accounting for 41 percent of total global orders of 1.88 million CGTs, according to UK-based Clarkson Research Services on Tuesday. China came in first with 1.02 million CGTs, accounting for 54 percent of total global orders.

Korea¡¯s order volume fell 34 percent from the previous month of 1.16 million CGTs. The sharp decline comes as Korean shipbuilders concentrated on high-value orders such as LNG carriers for profitability, market watchers said.

Korean shipbuilders won 11.92 million CGT orders between January and August, accounting for 43 percent of total global orders of 27.79 million CGTs, standing behind China that accounted for 45 percent of global orders with 12.35 million CGTs.

There were 111 global orders for LNGs 140,000 cubic meters or larger in size during the period, nearly triple that of the same period a year ago, and Korea took up 75 percent or 83 vessel orders. Korean shipbuilders also clinched all 8 LNG carrier orders last month.

The order backlog of Korean shipbuilders stood at 35.97 million CGTs as of end of August, accounting for 35 percent of global order backlog and standing behind China with 43.62 million CGTs.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]