Korean Shipbuilders Enjoy 5.7% Increase in Order Intake in 1H22

Korean shipbuilders' order intake in the first half of this year increased 5.7 percent from the same period of 2021.

As of June, the combined order intake of the five major Korean shipbuilders -- Hyundai Heavy Industries, Hyundai Mipo Dockyard, Hyundai Samho Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering (DSME) -- amounted to US$28.23 billion (about 36.76 trillion won).

Order intake grew 2.5 percent between January and May, but the growth rate accelerated in June. Samsung Heavy Industries booked orders worth US$2.9 billion in June. Hyundai Heavy Industries, Hyundai Samho Heavy Industries and DSME also won orders worth US$1.24 billion, US$1.27 billion, and US$1.32 billion, respectively, in June alone.

In the second half of the year, DSME showed a stellar performance. The company announced new orders worth US$4.1 billion in July alone.

Hyundai Samho Heavy Industries have already attained 143.8 percent of its annual order goal. It was followed by Samsung Heavy Industries (71.6 percent), DSME (66.6 percent), Hyundai Heavy Industries (64.2 percent) and Hyundai Mipo Dockyard (62.1 percent).

However, industry watchers predict that order intake in the second half of the year may inch down because most of the slots at Korean shipyards are fully booked. Clients are likely to delay orders because ship prices have risen sharply. The price of a liquefied natural gas (LNG) carrier has exceeded US$245 million. Even if a client places an order now, the delivery time will be delayed.

However, Korean shipbuilders are reportedly still taking calls about shipbuilding orders.