HD KSOE secures $462 million VLACs order

HD Korea Shipbuilding & Offshore Engineering (HD KSOE) secured a 616.8 billion won ($461.8 million) order for the construction of four Very Large Ammonia Carriers (VLACs), the company said Thursday.

Rendering of HD Korea Shipbuilding & Offshore Engineering's Very Large Ammonia Carrier (VLAC) [HD Hyundai]

HD Korea Shipbuilding & Offshore Engineering (HD KSOE) secured a 616.8 billion won ($461.8 million) order for the construction of four Very Large Ammonia Carriers (VLACs), the company said Thursday.

The contract for these four VLACs, each boasting 88,000 cubic meters in capacity, was formalized during the Gastech 2023 event in Singapore by shipping companies Singapore's EPS and Greece's Capital Management. The vessels will be constructed at HD Hyundai's Ulsan shipyard and are scheduled to be delivered by the latter half of 2027.

Additionally, the contract includes options for the construction of two more vessels, potentially expanding the order size in the future, the company said.

With the order placed, HD KSOE has met its annual order target for the current year, securing a total order value of $159.4 million, which is equivalent to 101.3 percent of its annual objective.

HD KSOE is showing strength in very large gas carriers (VLGCs), as it secured over 70 percent of the 27 very large liquefied petroleum gas (LPG) and ammonia carriers ordered this year, according to the data from global market researcher Clarkson Research.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]