Press digest

2018 December 18

HHI, DSME beat 2018 order targets

South Korean shipbuilding giant Hyundai Heavy Industries (HHI) has exceeded its orderbook goal for this year before the year ended.

Namely, the orderbook value of the world’s largest shipbuilder reached USD 13.3 billion with the latest USD 53 million deal for two 2,800 tonne frigates with Korea’s Defense Acquisition Program Administration (DAPA), thus exceeding the set goal of USD 13.2 at the beginning of this year.

Hyundai’s orderbook for this year is comprised of a total of 153 vessels, including 56 oil tankers, 50 containerships, 40 gas carriers, including 25 LNG carriers and 15 LPG carriers, followed by 4 bulkers, 2 frigates and one car ferry.

Following a challenging period for the shipbuilding industry two years ago, South Korean Big Three shipbuilders set bullish expectations for 2018 amid anticipated market recovery. HHI pushed its value intake expectations by 76 percent when compared to 2017 figures that stood at USD 10 billion worth of orders.

This was a very fruitful year for Daewoo Shipbuilding and Marine Engineering (DSME) as well. Namely, DSME had set sights on USD 5 billion orderbook value, more than double from the last year’s accomplishment of USD 2 billion. According to the latest available data from the company’s website, DSME’s orderbook counts 43 vessels worth about USD 6.22 billion.

Finally, Samsung Heavy Industries (SHI) which was targeting USD 7.7 billion worth of orders, seems to be lagging behind its competitors. Even though orders were pouring in over the past quarter, the shipbuilder has not yet met its sales target. The company’s newbuilding tally currently stands at 45 vessels, worth 5.5 billion USD. These include 14 LNG carriers, 13 containerships, 15 tankers, and 3 special purpose ships.