HD Hyundai Mipo on track to achieve turnaround this year

[Courtesy of HD Hyundai Mipo Co.]

South Korea’s HD Hyundai Mipo Co. has seen a surge in orders for product chemical (PC) tankers, one of high-margin vessels, despite an industry-wide slowdown.

According to HD Hyundai Mipo on Thursday, it has won a total of 48 PC ship orders this year as of June 10, which surpasses last year’s record 38 vessels.

The strong performance was led by solid demand for medium-sized tankers.

The demand for petrochemical transportation has shifted from land pipelines to ocean alternatives in the wake of the Russian-Ukrainian war.

The recent Red Sea ship attacks have also increased freight rates and times as ships detour around Africa instead of bypassing the continent through the Canal, all of which has pushed demand for medium-sized tankers to an all-time high.

Industry insiders noted that HD Hyundai Mipo is projected to turn a profit this year on the back of strong orders for high-margin PC vessels.

According to financial information firm FnGuide Inc., HD Hyundai Mipo is projected to post an operating profit of 10.9 billion won ($7.91 million) in the third quarter of 2024, marking the company‘s first turnaround in eight quarters.