Hyundai Heavy Industries Co, the world's largest shipbuilder, said sales last month climbed 16 per cent as it completed orders for oil tankers and container vessels contracted at higher prices.
Shipyards in South Korea are expanding capacity as order backlogs stretch into 2012
Sales advanced to 1.55 trillion won (S$2 billion) last month from 1.33 trillion won a year earlier, the Ulsan, South Korea-based company said in a regulatory filing yesterday. New orders rose 15 per cent to US$3.55 billion in May, it said.
Vessel prices are set to climb to a record for the fifth year as shipbuilders pass on higher costs to customers and demand for ships to carry fuel and consumer goods outstrips supply.
Yards in South Korea, the world's largest shipbuilding nation, are expanding capacity as order backlogs stretch into 2012.
Sales climbed 19 per cent to 7.48 trillion won in the first five months of the year, Hyundai Heavy said. New orders in the period almost doubled to US$16.1 billion from US$8.14 billion a year earlier. Of that total, vessel contracts climbed 87 per cent to US$9.34 billion and contracts for offshore oil rigs and platforms jumped to US$1.68 billion from US$82 million a year earlier. The company delivered 37 vessels to transport oil, consumer goods, liquefied natural gas and other products worth US$3.82 billion in the first five months, compared with 39 vessels worth US$2.85 billion a year earlier. Hyundai Heavy had an order backlog for vessels worth US$36 billion at the end of May.
Hyundai Heavy shares dropped 0.5 per cent to close at 328,000 won on the Seoul stock exchange before the announcement.
The stock has fallen 26 per cent this year, compared with a 9.6 per cent decline in South Korea's Kospi index.
Shipyards in South Korea are expanding capacity as order backlogs stretch into 2012
Sales advanced to 1.55 trillion won (S$2 billion) last month from 1.33 trillion won a year earlier, the Ulsan, South Korea-based company said in a regulatory filing yesterday. New orders rose 15 per cent to US$3.55 billion in May, it said.
Vessel prices are set to climb to a record for the fifth year as shipbuilders pass on higher costs to customers and demand for ships to carry fuel and consumer goods outstrips supply.
Yards in South Korea, the world's largest shipbuilding nation, are expanding capacity as order backlogs stretch into 2012.
Sales climbed 19 per cent to 7.48 trillion won in the first five months of the year, Hyundai Heavy said. New orders in the period almost doubled to US$16.1 billion from US$8.14 billion a year earlier. Of that total, vessel contracts climbed 87 per cent to US$9.34 billion and contracts for offshore oil rigs and platforms jumped to US$1.68 billion from US$82 million a year earlier. The company delivered 37 vessels to transport oil, consumer goods, liquefied natural gas and other products worth US$3.82 billion in the first five months, compared with 39 vessels worth US$2.85 billion a year earlier. Hyundai Heavy had an order backlog for vessels worth US$36 billion at the end of May.
Hyundai Heavy shares dropped 0.5 per cent to close at 328,000 won on the Seoul stock exchange before the announcement.
The stock has fallen 26 per cent this year, compared with a 9.6 per cent decline in South Korea's Kospi index.