Three Major Shipbuilders' Total Order Intake Could Reach 67 Trillion Won This Year... Order Backlog Surpasses 200 Trillion Won for the First Time in 12 Years

[Financial News] Hanwha Ocean won orders for two liquefied natural gas carriers (LNGCs) worth 680 billion won, while Samsung Heavy Industries secured two very large gas carriers (VLGCs) worth 300 billion won. Including HD Korea Shipbuilding & Offshore Engineering (HDKSOE), the three major shipbuilders' total order intake this year has approached 52 trillion won. With additional orders that could be secured by year-end, the total is expected to reach 67 trillion won.
According to the shipbuilding industry on the 1st, Hanwha Ocean won an order for two LNGCs from a shipowner in Africa. The order is worth 680 billion won. A shipowner in Bermuda placed an order with Samsung Heavy Industries for two VLGCs worth 307.4 billion won. Both contracts involve receiving contract payments and advance payments, followed by additional payments based on construction progress.
Including this latest order, Hanwha Ocean's order intake has reached approximately 10.5 trillion won, while Samsung Heavy Industries has surpassed 16 trillion won. Adding the approximately 25.2 trillion won in orders secured by industry leader HDKSOE, the three shipbuilders are on the verge of surpassing 52 trillion won in combined order intake. Their order backlog has already exceeded 200 trillion won when orders secured from July through September are simply added to the backlog as of the end of June. An order backlog in the 200 trillion-won range has been achieved for the first time in 12 years, since 2014.
The projects expected to generate orders by year-end are also substantial. Hanwha Ocean was selected as the preferred bidder for a 680 billion-won Thai frigate and an integrated logistics support project, and is moving toward signing the contracts within the year. It is also expected to win a 4 trillion-won order for Namibia's Venus low-carbon floating production, storage and offloading (FPSO) facility.
HD Hyundai Heavy Industries, a subsidiary of HDKSOE, may be selected as the contractor for a Saudi Arabian project involving five frigates. The project is worth approximately 3 trillion won. Samsung Heavy Industries is considered a strong contender for the second Delfin LNG floating liquefied natural gas (FLNG) facility and Canada's Western Ksi Lisims FLNG project. Each project is expected to be worth more than 3 trillion won. Samsung Heavy Industries has built six of the 10 FLNG facilities worldwide, giving it a dominant position in the market.
If all of the anticipated orders are secured, the three major shipbuilders' total order intake this year is expected to reach approximately 67 trillion won. In that case, the order backlog in the 200 trillion-won range achieved for the first time in 12 years would remain at that level even after accounting for fluctuations resulting from the delivery of those orders.
[email protected] Kim Yun-ho Reporter